Sona BLW Precision Forgings Limited has announced its schedule for releasing third quarter and nine months results for the period ended December 31, 2025. The mobility technology company, which provides mission-critical systems and components to automotive OEMs and safety systems for railways in India, will announce its financial results on January 23, 2026.

Results Release and Earnings Call Details

Following the results announcement, the company will host a conference call where management will discuss the performance for the third quarter and nine months ended December 31, 2025, and address questions from analysts and investors. The earnings conference call is scheduled for 4:30 PM IST on January 23, 2026.

Participation and Access Information

Participants interested in joining the conference call are advised to register using the designated registration link provided by the company. The webcast will be conducted via Webex platform, and participants can access the call through the registration portal or by using the event number and password.

Document Availability and Recording

The earnings documents will be made available on the company's website at www.sonacomstar.com following the results announcement. Additionally, the webcast recording will be archived and accessible on the company's website after the event concludes, allowing stakeholders to review the discussion at their convenience.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with disclosure requirements for listed companies. The notification was signed by Ajay Pratap Singh, Senior Vice President (Legal) – General Counsel, Company Secretary and Compliance Officer, on January 14, 2026.

For further information regarding the earnings call, investors can contact Ankit Agrawal, Head - Investor Relations, at ankit.agrawal@sonacomstar.com .

Sona BLW Precision Forgings has witnessed its stock decline nearly 40% from recent highs as the company grapples with a combination of operational challenges, supply chain disruptions, and margin pressures. The automotive components manufacturer, known for its EV drivetrain solutions, has faced multiple headwinds that have tested investor confidence despite management's assertion that current difficulties are largely temporary.

Operational Challenges Impact Performance

The company's Q2 FY26 performance reflected challenges that began in Q1, which management described as one of the worst quarters from a business performance perspective since the IPO. Several factors contributed to the moderated revenue growth and EBITDA margins during this period.

Supply Chain and Customer-Related Issues

A significant factor impacting performance was the change in supply terms with a major European EV customer. Revenue recognition shifted from Ex-works terms to delivery-to-customer terms, adding approximately 60 days of delay in recognizing revenue. This change pushed a portion of Q1 revenue into Q2, temporarily moderating reported performance without affecting actual cash flow.

Additionally, weak demand from one large global EV customer led to reduced procurement, affecting core automotive segments. Traction motors and other key products outside the railway business posted 5% year-on-year growth in Q2 FY26, recovering from a 10% decline in Q1 FY26.

Supply Chain Disruptions and Material Shortages

External supply chain shocks significantly compounded the company's challenges. Since April 8th, 2025, China banned heavy rare earth magnets to India, disrupting EV traction motor production. Sona Comstar responded by pivoting to light rare earth magnets and subsequently to ferrite-assisted synchronous motors within three months.

While this transition showcased operational agility, it temporarily impacted production timelines and cost efficiency. Additional macro pressures, including frequent US tariff changes, prompted OEMs and tier 1 suppliers to maintain low inventories, slowing procurement and order flow.

Margin Pressures from Business Mix Changes

Margins were significantly affected by structural changes in revenue composition, particularly the integration of the railway business. The railway segment now contributes 20% of revenue but operates at lower EBITDA levels, diluting consolidated margins.

Management clarified that this represents a mathematical shift due to business mix rather than operational inefficiency. High-margin segments like EVs and hybrids continued to face external pressures, reinforcing how revenue mix adjustments can materially affect reported margins.

Financial Metrics and Valuation Correction

The company's financial metrics reflect the ongoing normalization process. The PE ratio, which peaked at 200.8x, has corrected to 47.5x, indicating a shift from previously elevated market expectations. Sales growth, which reached 51% in 2021, declined to 11.34% in 2025, though Q2 FY26 showed revival with 23.43% growth.

Management's Recovery Strategy

Despite current challenges, management has outlined several initiatives indicating these issues may be temporary. The company maintains a continuous cost optimization approach, with teams working to reduce material usage, processing time, and improve operational efficiency across all products.

EV and Hybrid Programs as Growth Drivers

Hybrid motors now account for 24% of automotive revenue, offering the highest value content per vehicle due to their integration of starter motors, traction motors, and high-torque differential assemblies. The company's ability to pivot to ferrite-assisted synchronous reluctance motors within three months demonstrates resilience in responding to supply chain disruptions.

Long-term Growth Opportunities

Sona Comstar's investments in humanoid robotics, cobots, and industrial robots represent long-term growth opportunities. While revenue contribution from these segments will be negligible over the next 3-4 years, management emphasizes that the first 5 years primarily involve capability-building, with significant revenue potential emerging over a 5-10 year horizon.

The company is also actively broadening its product mix, with the "Others" category now representing 9% of revenue, reflecting new gears, driveline parts, and other automotive components. Management adjusted the order book by ₹2,600 crores due to low visibility in certain programs, reflecting disciplined revenue recognition amid structural uncertainties.

Outlook and Recovery Prospects

Management's focus on sustainable cost improvement, process optimization, and product innovation, coupled with structural diversification across EVs, hybrids, and other mobility solutions, suggests that current operational and market pressures are largely temporary. As these initiatives mature, the company appears positioned to restore growth and strengthen long-term profitability.