Sona BLW Precision Forgings Q2 FY27 results: net profit up 30.8% to ₹222.99 crore, revenue up 35.2%

How did Sona BLW Precision Forgings perform in Q2 FY27?

Sona BLW Precision Forgings reported consolidated revenue of ₹1,546 crore for Q2 FY27, up 35.2% from ₹1,144 crore in Q2 FY26 and 18.0% from ₹1,310 crore in Q1 FY27. EBITDA rose to ₹356.24 crore from ₹289.06 crore and ₹302.60 crore, while margin eased to 23.0% from 25.3% and 23.1%.

Net profit increased to ₹222.99 crore from ₹170.47 crore a year earlier and ₹178.51 crore in the previous quarter. Basic EPS was ₹3.58, compared with ₹2.78 in Q2 FY26 and ₹2.90 in Q1 FY27. On the standalone basis, revenue was ₹1,384.83 crore and profit was ₹197.38 crore, up 30.2% from ₹166.25 crore a year earlier.

What changed in Sona BLW Precision Forgings' costs and profit?

Total expenses rose 37.6% to ₹1,281 crore from ₹931.24 crore in Q2 FY26. Cost of materials increased by ₹260.07 crore to ₹818.48 crore, employee cost by ₹27.56 crore to ₹130.60 crore, finance costs by ₹7.16 crore to ₹12.32 crore, depreciation by ₹7.29 crore to ₹78.91 crore and other expenses by ₹71.82 crore to ₹276.71 crore.

Other income rose by ₹14 crore to ₹30.95 crore, while tax expense increased by ₹15.89 crore to ₹72.98 crore. Q2 FY27 had no exceptional item, against an exceptional charge of ₹1.67 crore in Q2 FY26. Management attributed the lower margin percentage to product mix and inflation, including traction-motor demand and increases in steel, copper, oil derivatives and freight rates.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹2,856.79 crore, up 43.2% from ₹1,994.42 crore in H1 FY26. Total income rose 41.7% to ₹2,913.44 crore, while profit before tax increased 36.7% to ₹536.91 crore.

Net profit rose 37.4% to ₹401.5 crore from ₹292.17 crore, and basic EPS increased to ₹6.49 from ₹4.78. The investor presentation reported an H1 EBITDA margin of 23.1%.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹8,434.09 crore, compared with ₹7,463.86 crore at 31 March 2026. Total equity rose to ₹6,568.52 crore from ₹6,132.16 crore, while borrowings increased to ₹469.40 crore from ₹242.69 crore. Cash and cash equivalents declined to ₹108.04 crore from ₹151.08 crore.

Inventories increased to ₹785.65 crore from ₹615.59 crore, trade receivables to ₹1,185.29 crore from ₹1,150.71 crore and trade payables to ₹732.56 crore from ₹462.23 crore. H1 operating cash flow was ₹593.53 crore, compared with ₹339.75 crore in H1 FY26; investing cash flow was an outflow of ₹831.77 crore against ₹1,158.42 crore, and financing cash flow was ₹193.49 crore against an outflow of ₹115.76 crore.

How has Sona BLW Precision Forgings done over the last 8 quarters?

Revenue increased in each of the last five quarters on a year-on-year basis and reached ₹1,546.42 crore in Q2 FY27, the highest level in the reported series. Profit also rose year on year in each of the last three quarters and reached ₹222.99 crore in Q2 FY27, while the EBITDA margin fell from 25.3% in Q2 FY26 to 23.0% in Q2 FY27. The margin bottomed at the current quarter and was below the 27.1% peak recorded in Q4 FY25.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended on 30 September 2026. The same-day investor presentation reported a net order book of ₹251 billion, comprising automotive EV, automotive non-EV, railway and robotics and physical AI programmes. No dividend, fund raise or appointment was disclosed in the same-day filings cited here.

What did Sona BLW Precision Forgings' management say?

Management said BEV revenue reached 51% of automotive sales, while its H1 share rose to 48% from 30% a year earlier. It maintained a medium-term EBITDA-margin range of 23–25%, saying around 23% was plausible under normal commodity conditions and that the range would hold unless oil reached 150. Management also said traction-motor and controller mix was diluting consolidated percentage margins.

Management said Q2 order additions were ₹36 billion, taking the net order book to ₹251 billion. It said the EPIC pipeline covered 75 programmes across 37 customers, with 44 already in production, and reaffirmed a 10-times growth ambition over 10 years under the Sona Comstar 2.0 vision. The company expects Denso JV1 closure by end-December 2026, with possible spillover into January, and Denso JV2 formation during H1 CY2027.

Management identified elevated steel, copper, oil and freight inflation, commodity pass-through lags, customer concentration in the suspension-motor pipeline and Chinese heavy-rare-earth export restrictions as risks. It said cash and investments were ₹1,966 crore and net cash was ₹1,400–1,500 crore, while cash-to-EBITDA may remain up to 1.5x without forcing an M&A decision.

How did Sona BLW Precision Forgings shares react?

The filing was released after market hours on 26 October 2026. The stock moved up 2.3% within five minutes, 2.8% within 15 minutes and 2.8% within 30 minutes. It closed the reaction day 9.1% above its pre-results close, and by the next day’s close it was up 12.7% from that close; by the fifth session, it was up 15.3%.

The Auto Components & Equipments industry median gained 1.6% on the reaction day, 1.9% by the next day’s close and 2.6% by five sessions. Sona BLW therefore exceeded the industry median by 7.5 percentage points on the reaction day, 10.8 percentage points by the next day’s close and 12.7 percentage points after five sessions. Earlier reaction-day moves were 0.3% on 23 July 2026, -4.9% on 30 April 2026, -2.8% on 23 January 2026 and 14.6% on 23 October 2024.

How did other Auto Components & Equipments companies do?

Among 46 other Auto Components & Equipments companies that had filed for the quarter, the median revenue growth was 33.6%. Sona BLW’s revenue grew faster than 28 peers and more slowly than 18 peers, while 37 of the 47 companies compared reported higher profit.