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What is the story about?
Sona BLW Precision Forgings Ltd (Sona Comstar) reported a mixed operating performance for the December quarter on Friday, January 23, with strong revenue growth offset by margin compression and a one-time impact from labour code-related costs.
The auto components maker posted a marginal 0.3% year-on-year (YoY) decline in consolidated net profit at ₹150.7 crore in Q3FY26, compared with ₹151.1 crore in the corresponding quarter last year. Profitability was impacted by a sharp fall in other income and the one-time labour code adjustment during the quarter.
Revenue from operations surged 38.2% YoY to ₹1,199 crore, up from ₹867.9 crore in Q3FY25, driven by higher volumes across electric vehicle and conventional mobility segments, along with consolidation of acquired businesses.
At the operating level, EBITDA rose 26% YoY to ₹295.4 crore, compared with ₹234.4 crore a year earlier. However, EBITDA margin narrowed to 24.6% from 27%, reflecting cost pressures and operating deleverage. The company also reported a labour code impact of ₹40 crore during the quarter.
Other income declined sharply to ₹17 crore, from ₹47 crore in the year-ago period, further weighing on bottom-line growth.
The results highlight Sona Comstar’s strong topline momentum amid sustained demand for mobility components, even as near-term profitability remains under pressure due to regulatory and cost-related headwinds.
Segmentally, performance was led by the EV business, which recorded a 38% year-on-year revenue growth, supported by strong traction in traction motors, driveline and differential assemblies.
The driveline and differential segment remained the largest contributor, accounting for around half of consolidated revenue during the quarter, while EV traction motors and components continued to see high double-digit growth on the back of new programme ramp-ups with global OEMs.
Following the Q3 result announcement, shares of Sona BLW Precision Forgings Ltd ended 456.90. The stock has lost 6.43% in the last one month.
The auto components maker posted a marginal 0.3% year-on-year (YoY) decline in consolidated net profit at ₹150.7 crore in Q3FY26, compared with ₹151.1 crore in the corresponding quarter last year. Profitability was impacted by a sharp fall in other income and the one-time labour code adjustment during the quarter.
Revenue from operations surged 38.2% YoY to ₹1,199 crore, up from ₹867.9 crore in Q3FY25, driven by higher volumes across electric vehicle and conventional mobility segments, along with consolidation of acquired businesses.
At the operating level, EBITDA rose 26% YoY to ₹295.4 crore, compared with ₹234.4 crore a year earlier. However, EBITDA margin narrowed to 24.6% from 27%, reflecting cost pressures and operating deleverage. The company also reported a labour code impact of ₹40 crore during the quarter.
Other income declined sharply to ₹17 crore, from ₹47 crore in the year-ago period, further weighing on bottom-line growth.
The results highlight Sona Comstar’s strong topline momentum amid sustained demand for mobility components, even as near-term profitability remains under pressure due to regulatory and cost-related headwinds.
Segmentally, performance was led by the EV business, which recorded a 38% year-on-year revenue growth, supported by strong traction in traction motors, driveline and differential assemblies.
The driveline and differential segment remained the largest contributor, accounting for around half of consolidated revenue during the quarter, while EV traction motors and components continued to see high double-digit growth on the back of new programme ramp-ups with global OEMs.
Following the Q3 result announcement, shares of Sona BLW Precision Forgings Ltd ended 456.90. The stock has lost 6.43% in the last one month.
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