Sona BLW Precision Forgings reported a 54% year-on-year increase in consolidated revenue to ₹1,310 crore for the quarter ended June 30, 2026. Profit after tax grew 45% to ₹181 crore, while EBITDA increased 49% to ₹303 crore. The financial results were reviewed by the statutory auditor, Walker Chandiok & Co LLP, and approved by the Board on July 23, 2026.

The strong top-line growth was driven by the battery electric vehicle (BEV) vertical, where revenue surged 107% to ₹435.5 crore. BEV revenue constituted 44% of the company’s automotive product sales during the quarter. The overall EBITDA margin stood at 23.1%, while the PAT margin was 13.6%.

Strategic Joint Ventures

On July 22, 2026, the company signed definitive agreements with DENSO Corporation Japan to form two joint ventures for developing, manufacturing, and selling electric and hybrid powertrain systems. One JV, with 51:49 equity ownership between DENSO and Sona BLW, will focus on high voltage liquid cooled EV traction motors and controllers for four-wheelers and larger vehicles. The second JV, with 51:49 equity ownership between Sona BLW and DENSO, will develop air cooled EV traction motors and controllers for two-wheelers and three-wheelers. Pursuant to these agreements, the company will slump sell its existing EV motors and controllers business in its 100% subsidiary at an enterprise value of ₹17,500 million.

Strategic Orders and Orderbook

During Q1 FY27, the company secured new programs worth ₹640 crore for a hybrid driveline differential assembly and ₹90 crore for two traction motor programs for electric two-wheelers. Additionally, it won new programs for differential gears for non-electric passenger vehicles, commercial vehicles, and off-highway vehicles totaling ₹210 crore.

The company’s net order book stands at ₹240 bn, which is 5.4 times its FY26 revenue. This includes orders added for programs won in Q1 FY27, amounting to ₹237 bn, adjusted for matured and ramp-up programs.

Financial and Operational Metrics

The company noted that the EBITDA margin was lower by approximately 0.7% due to product mix and higher input prices, partially compensated by positive operating leverage. The PAT margin was also lower by about 0.7% due to reduced EBITDA margin and lower net finance income, offset by lower depreciation costs and exceptional expenses in the prior year period.

Sona BLW Precision Forgings continues to expand its global footprint, serving 7 of the world’s top 10 passenger vehicle OEMs and 3 of the top 10 commercial vehicle OEMs. The company is also advancing its new growth vertical in Robotics and Physical AI, with a total order book of ₹8 bn.

Sona BLW Precision Forgings has signed definitive agreements with DENSO Corporation, Japan, to establish two joint ventures focused on developing advanced electric and hybrid powertrain systems. The Board of Directors approved the transactions, including the transfer of its EV business to Sona Comstar eDrive Private Limited at ₹8,932 million, at its meeting held on July 22, 2026, subject to regulatory and shareholder approvals. This partnership aims to advance the electric mobility landscape by combining DENSO's technology leadership with Sona Comstar's engineering excellence and manufacturing capabilities.

Four-Wheeler and Commercial Vehicle Joint Venture

The first joint venture will target the four-wheeler and commercial vehicle segments. Sona Comstar and DENSO have entered into a Joint Development Agreement to create high-efficiency liquid-cooled traction inverters, traction motors, and generators. To commercialize these products, a new entity will be established in India where DENSO will hold a 51% equity stake and assume management control, while Sona Comstar will hold the remaining 49%.

Two-Wheeler and Three-Wheeler Joint Venture

The second joint venture focuses on the two-wheeler and three-wheeler market. Sona Comstar will transfer its existing electric traction motor and controller business to Sona Comstar eDrive Private Limited, a wholly owned subsidiary, via a slump sale at a value of ₹8,932 million. Subsequently, DENSO will acquire a 49% equity stake in Sona eDrive at an enterprise value of ₹17,500 million, with Sona Comstar retaining 51% and management control. This entity will manufacture air-cooled traction inverters, traction motors, generators, and e-Axles.

Transaction Overview

The key terms of both joint ventures are summarised below:

Both parties have agreed to license intellectual property and know-how to their respective majority-owned joint ventures against royalty payments. Deloitte India, Trilegal, and KPMG India acted as financial, legal, and diligence & tax advisors, respectively, to Sona Comstar. The transactions are expected to close upon receipt of relevant regulatory approvals and satisfaction of customary closing conditions.

Analyst Views

The DENSO joint venture has drawn positive responses from leading brokerages. Citi maintains a Buy rating on Sona BLW with a target price of ₹700, noting that the DENSO JV strengthens Sona's EV powertrain portfolio across the 2W, 3W, and 4W segments, boosting technology capabilities and long-term growth prospects. Similarly, Jefferies maintains a Buy rating with a target price of ₹700, highlighting that the DENSO partnership expands EV technology capabilities, strengthens the 4W opportunity, and positions Sona to benefit from accelerating EV adoption.