Sona BLW Precision Forgings Ltd. (Sona Comstar), a leading mobility technology company, has unveiled its growth plans, targeting revenue of ₹6,500 crores by fiscal year 2027. The company's strategy heavily emphasizes the burgeoning electric vehicle (EV) market, with EV drivetrain sales expected to constitute 28% of total revenue.

Strong Order Book Fuels Growth Expectations

Sona Comstar has secured global EV orders worth ₹23,000 crores, underscoring its strong position in the rapidly evolving automotive landscape. This robust order book provides a foundation for the company's growth projections and highlights its increasing prominence in the EV supply chain.

Focus on Electric Vehicle Technology

The company is implementing new e-axle programs, demonstrating its commitment to innovation in EV drivetrain technology. This focus aligns with the global automotive industry's shift towards electrification and positions Sona Comstar as a key player in this transition.

Maintaining Profitability Amid Growth

Despite the growth targets, Sona Comstar expects to maintain its EBITDA margins at 25% during this period. This projection suggests the company's confidence in its operational efficiency and cost management strategies.

Recent Financial Performance

According to the company's latest financial results for Q2 FY26, Sona Comstar has shown strong performance:

The company's revenue from Battery Electric Vehicles (BEV) stood at ₹2,647.00 million, representing 32% of its automotive product revenue in Q2 FY26.

Technological Advancements

Sona Comstar has made strides in EV technology, successfully developing, testing, and validating Rare Earth Free Motors for EV applications. This innovation addresses supply chain security concerns and offers improved thermal capability, noise, vibration, and harshness (NVH) characteristics, and higher drive cycle efficiency.

Expanding Global Presence

The company continues to strengthen its global footprint. Recently, Sona Comstar won its first program for its Driveline Mexico Plant, securing an order to supply differential assemblies for a North American recreational vehicle OEM. This order, valued at ₹2,600.00 million, is expected to commence production in Q2 FY28.

As Sona BLW Precision Forgings Ltd. pursues its growth targets, the company's focus on EV technology, strong order book, and global expansion strategies position it to capitalize on the evolving automotive industry landscape. The coming years will be crucial as the company works towards achieving its FY27 revenue goals while maintaining profitability in a competitive market.

Sona BLW Precision Forgings Limited , also known as Sona Comstar, has reported robust financial results for the second quarter of fiscal year 2026, while also announcing strategic changes in its operations and management.

Financial Performance

Sona Comstar demonstrated strong growth in Q2 FY26, with revenue reaching ₹11,383.00 million, marking a 24% year-over-year increase. The company's EBITDA stood at ₹2,891.00 million, while Profit After Tax (PAT) rose to ₹1,728.00 million, representing a 20% year-over-year growth.

BEV Segment Performance

The Battery Electric Vehicle (BEV) segment showed a mixed performance. While BEV revenue declined by 17% year-over-year, it still constituted a significant 32% of the company's automotive product sales.

Strategic Developments

Joint Venture Suspension

In a notable strategic shift, Sona Comstar has decided to suspend its proposed joint venture with China's Jinnaite Machinery Co. Ltd. The company disclosed that both parties have mutually agreed to put the JV in abeyance. However, they plan to cooperate on select foundry products and remain open to future collaboration opportunities. The binding term sheet executed on July 20, 2025, for the proposed JV now stands rescinded.

New Senior Management Appointment

The company has strengthened its leadership team by appointing Mr. Pratik Sachan as Head of Strategy & M&A. The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has designated Mr. Sachan as a Senior Management Personnel (SMP). With over 15 years of experience in strategy, M&A, investor relations, and project management, Mr. Sachan brings valuable expertise to Sona Comstar's strategic initiatives.

Order Book and Manufacturing Presence

Sona Comstar maintains a robust net order book of ₹236.00 billion, representing 6.8 times its FY25 revenue. The company continues to operate across 12 manufacturing plants, serving global automotive customers.

Employee Stock Option Plan

In a move to align employee interests with company growth, Sona Comstar's Nomination and Remuneration Committee has approved the grant of 630,000 stock options to eligible employees under the Sona Employee Stock Option Plan 2023. The exercise price is set at the fair market value of ₹478.70 per share as of the grant date.

Outlook

Despite the challenges in the BEV segment, Sona Comstar's overall financial performance and strategic moves indicate a focus on long-term growth and adaptability in the dynamic automotive market. The company's strong order book and global manufacturing presence position it well for future opportunities in the evolving mobility sector.