Sona BLW Precision Forgings Limited has delivered its best-ever quarterly performance in Q3 FY26, crossing the ₹1,200 crore revenue milestone for the first time in company history. The automotive component manufacturer reported record financial metrics across all parameters, demonstrating strong recovery from earlier challenges.

Record Financial Performance

The company achieved exceptional growth in Q3 FY26 with revenue reaching ₹1,209 crores, marking a substantial 39% increase year-on-year. This milestone quarter also saw EBITDA cross ₹300 crores for the first time, reaching ₹305 crores with 30% year-on-year growth.

The adjusted profit after tax of ₹181 crores represents 20% year-on-year growth, excluding one-time labor code-related costs of ₹30 crores implemented during the quarter. These new labor codes, effective from November 21, 2025, primarily impacted additional gratuity provisions.

Strong Nine-Month Performance

For the nine-month period ending December 31, 2025, the company maintained robust growth momentum with revenue of ₹3,203 crores, representing 19% year-on-year increase. EBITDA for the period reached ₹796 crores with 8% growth, while maintaining healthy margins at 24.9% level.

Electric Vehicle Business Resilience

Despite challenging market conditions in North America where EV volumes declined 45% quarter-on-quarter and 36% year-on-year, the company's BEV revenues demonstrated remarkable resilience. BEV revenues reached ₹320 crores in Q3, constituting 38% of automotive revenue and showing 21% quarter-on-quarter growth.

For the nine-month period, BEV revenues totaled ₹795 crores, representing 33% of automotive revenue. The company now operates 64 EV programs across 33 customers, with 33 programs currently in production and 31 programs yet to enter production.

Geographic Diversification Success

The company successfully executed a strategic pivot in geographic mix, with India's revenue share increasing to 55% in Q3 FY26. Eastern markets now account for 58% of total revenues, compared to 33% in the previous year. This diversification was achieved while maintaining consolidated margins at 25% level, challenging the perception that higher India mix leads to margin dilution.

Product Innovation and Market Expansion

The company expanded its product portfolio with two significant additions during the quarter:

The air springs product opens opportunities in high-speed trains including Rajdhani, Shatabdi, Vande Bharat, and Amrit Bharat, making the company a comprehensive suspension system provider to railways.

Strong Order Pipeline and Future Outlook

Management reported the strongest RFQ pipeline in company history, nearly three times compared to the same period last year. The current net order book stands at ₹235 billion, with EV portion maintaining a high 71% share. The company has also received its first year PLI benefit from the government during January 2026.

Non-automotive revenues have grown significantly to 31% in the first nine months from 9% in FY25, driven by strong performance in off-highway, tractors, and railway brake systems. The diversification across market segments, products, and geographies positions the company well for sustained growth while maintaining margin resilience.

Sona BLW Precision Forgings Ltd delivered mixed operating performance for Q3FY26, with strong revenue growth offset by margin compression and regulatory cost impacts. The auto components maker demonstrated robust topline momentum while facing near-term profitability pressures from labour code adjustments and cost-related headwinds.

Financial Performance Overview

The company's Q3FY26 results reflected contrasting trends across key financial metrics:

Revenue from operations surged 38.20% year-on-year to ₹1,199.00 crore, driven by higher volumes across electric vehicle and conventional mobility segments, along with consolidation of acquired businesses. Despite strong topline growth, consolidated net profit declined marginally by 0.30% to ₹150.70 crore.

Margin Compression and Cost Impact

Operating profitability faced significant pressure during the quarter. EBITDA rose 26.00% year-on-year to ₹295.40 crore, but EBITDA margin compressed to 24.60% from 27.00% in the corresponding quarter last year. This margin contraction reflected cost pressures and operating deleverage across the business.

The company reported a substantial ₹40.00 crore impact from labour code adjustments during the quarter, which weighed on overall profitability. Additionally, other income declined sharply to ₹17.00 crore from ₹47.00 crore in the year-ago period, further constraining bottom-line growth.

Segment Performance

The electric vehicle business segment led performance with 38.00% year-on-year revenue growth, supported by strong traction in traction motors, driveline and differential assemblies. New programme ramp-ups with global OEMs continued to drive high double-digit growth in EV traction motors and components.

The driveline and differential segment remained the largest revenue contributor, accounting for approximately half of consolidated revenue during the quarter. This segment's performance underscored the company's strong positioning in both conventional and electric mobility components.

Market Response

Following the Q3FY26 results announcement, shares of Sona BLW Precision Forgings Ltd closed 2.60% lower at ₹456.90. The stock has declined 6.43% over the past month, reflecting investor concerns about margin pressures despite strong revenue growth momentum.