Sona BLW Precision Forgings Limited (Sona Comstar), a leading mobility technology company, has unveiled its strategic roadmap for future growth while reporting a slight dip in revenue for the first quarter.

Strategic Initiatives and Market Expansion

Sona BLW Precision Forgings has announced several key strategic moves aimed at diversifying its revenue streams and expanding its global footprint:

• The company expects Asia (including India) to contribute over 50% to its revenue share in the coming quarters.
• Non-automotive revenue is projected to increase to more than 25% of total revenue.
• A significant joint venture agreement has been signed with JNT in China for local manufacturing of driveline systems. Sona BLW Precision Forgings will hold a 60% controlling stake, with operations planned to commence in the second half.

Financial Performance

For Q1, Sona BLW Precision Forgings reported:

The company has revised its EBITDA margin guidance to 23.5-25% from the previous 25-27% range, factoring in the integration of its newly acquired Railway Division.

Product Launches and Future Outlook

Sona BLW Precision Forgings highlighted several upcoming product launches and developments:

• Major motor-focused product launches have been slightly delayed by 1-2 months, with significant ramp-ups expected in Q4.
• The company anticipates launching several programs, each potentially generating Rs. 200-300 crores annually.
• New railway products under development include automatic plug door systems, HVAC systems, and electric control panels.

Market Challenges and Opportunities

The company acknowledged potential headwinds:

• A possible 3-4% revenue impact from US tariffs, though this would take 12-18 months to materialize if implemented.
• The Battery Electric Vehicle (BEV) segment saw a 25% year-over-year decline in revenue, contributing 28% to the total automotive product revenue in Q1.

Despite these challenges, Sona BLW Precision Forgings reported a robust order book:

• The net order book reached an all-time high of Rs. 262 billion as of June 30.
• Electric Vehicle (EV) programs contribute 75% to the net order book.

Management Commentary

Mr. Vivek Vikram Singh, MD and Group CEO, stated: "Q1 was a challenging quarter for us due to the convergence of multiple adverse factors, which are temporary, and some have started to resolve already. We ended the quarter with a few large order wins, closing the quarter with an all-time high net order book."

He added, "We have recently signed a term sheet with JNT to form a JV in China. This JV marks a significant step in our strategy to expand into the rapidly growing Asian markets. With a robust order book already in place, we expect operations to commence later this year."

As Sona BLW Precision Forgings navigates through temporary headwinds, its strategic initiatives and strong order book position the company for potential growth in the evolving mobility technology landscape.

Sona BLW Precision Forgings Limited (Sona Comstar), a leading mobility technology company, has released its financial results for the first quarter, revealing a challenging period for the company.

Financial Highlights

Battery Electric Vehicle (BEV) Segment Performance

The company's BEV segment, which has been a key focus area, experienced a significant downturn:

• BEV revenue decreased by 25% YoY to ₹2,106.00 million
• BEV revenue share in the automotive product revenue fell to 28%, down from 36% in the previous fiscal year

Order Book and New Wins

Despite the challenging quarter, Sona Comstar reported positive developments in its order book:

• Secured a new driveline order from a North American OEM, described as the single largest order in 2.5 years
• Net order book reached an all-time high of ₹262,000.00 million
• EV programs now contribute 75% to the net order book

Strategic Developments

The company announced several strategic initiatives:

1. Acquisition of Railway Business: Completed the acquisition of the Railway Equipment Division from Escorts Kubota Limited on June 1, 2025, for ₹16,382.00 million.

2. Joint Venture in China: Signed a binding term sheet with Jinnaite Machinery Co., Ltd (JNT) on July 20, 2025, to establish a joint venture in China for manufacturing and supplying driveline systems and components.

3. New Orders:

   • Received an order from a North American OEM to supply differential assemblies for their new electric passenger vehicle platform, adding ₹15,500.00 million to the order book.
   • Secured an order from an Indian OEM for drive motors for their new electric three-wheeler, adding ₹2,600.00 million to the order book.

Management Commentary

Mr. Vivek Vikram Singh, MD and Group CEO, stated: "Q1 was a challenging quarter for us due to the convergence of multiple adverse factors, which are temporary, and some have started to resolve already. We ended the quarter with a few large order wins, closing the quarter with an all-time high net order book."

He added, "We believe this is likely to be one of the most significant and successful EV launches in many years. We have strengthened our position as the leading supplier of drive motors for electric two- and three-wheelers in India."

Looking Ahead

Despite the temporary setbacks, Sona Comstar remains optimistic about its future prospects, particularly in the EV segment. The company's strategic moves, including the expansion into the Chinese market and the acquisition of the railway business, are expected to drive growth in the coming quarters.

As the mobility industry continues to evolve, Sona Comstar's focus on electrification and its strong order book position it well to capitalize on future opportunities in the global automotive and EV markets.