Sona BLW Precision Forgings Ltd. (Sona Comstar) remains confident of a stronger performance in the coming quarters, even as it posted one of its weakest quarters since listing. The auto component major expects a recovery in Battery Electric Vehicle (BEV) revenues, a growing share from Asia, and a rising contribution from non-automotive segments to drive its medium-term growth, even as operating margins are set to moderate following its foray into the low-margin railway equipment business.
Vivek Vikram Singh, MD & Group CEO of Sona Comstar, said the 25% on-year dip in the first quarter was temporary and expects recovery ahead. “We believe BEV revenues will improve going forward, supported by a strong domestic pipeline of EV product launches from FY26 to FY28, declining battery prices, and revenue that got pushed from Q1 to Q2 due to a change in supply terms with a European EV customer,” Singh said.
The company also expects geographical mix to shift in the near term, with Asia, including India, likely to account for over 50% of total revenue. Asia currently contributes 45%, and growth in China and other regional markets is seen boosting the share further.
Sona Comstar is also placing emphasis on revenue diversification. Singh noted that the share of non-automotive business, which stood at 19% in Q1 FY26, is expected to rise above 25% in the coming quarters. The company’s recent entry into railway systems, alongside gains in off-highway and industrial applications, is expected to anchor this growth.
However, the expansion into the railway segment is expected to impact overall profitability. “Our margins will dilute slightly and settle in the 23-25% range, compared to 27% earlier,” Singh said.
Sona Comstar reported a challenging Q1 FY26 performance. Total revenue stood at ₹850.9 crore, down 5% year-on-year. EBITDA for the quarter was ₹202.5 crore, reflecting a 19% decline, with the EBITDA margin slipping to 23.8%. Net profit fell 12% to ₹124.7 crore, translating to a net margin of 14.3%.
Singh described the quarter as “undoubtedly our worst since IPO,” attributing the underperformance to a confluence of temporary challenges. These included a change in delivery terms with a key European EV customer, a steep decline in volumes from a large global customer, supply disruptions in rare earth magnets from China, and uncertainty around U.S. tariffs that caused OEMs to delay orders and reduce inventories.
“This quarter was impacted by four adverse factors converging at once. Each is significant in isolation, but together they distorted our performance. But most of these now appear temporary and are already beginning to reverse,” Singh said.
Adding to the optimism, Singh highlighted that the company ended the quarter with its highest-ever order book, reaching ₹26,200 crore. Of this, 75% relates to BEV programs. The company added ₹2,800 crore in new orders during the quarter, including its largest single order win in two and a half years–a driveline assembly order for a new North American EV platform.