Auto ancillary stock jumps 7.4% after announcing ₹23,500 Cr order book, Q3 results and dividend

SYNOPSIS: Sona BLW Precision Forgings Limited reported strong Q3 FY26 revenue growth with robust EBITDA expansion and a large EV-led order book, while net profit declined marginally due to one-time labour code impact and margin pressures.

Shares of a leading mobility technology company providing mission-critical systems and components for electrified and non-electrified powertrain segments surged nearly 7.4 percent on BSE, after reporting an order book of Rs. 23,500 crores in Q3 FY26, financial performance and more.

With a market cap of Rs. 30,321.3 crores, shares of Sona BLW Precision Forgings Limited closed in the green at Rs. 487.7 on BSE, up by around 7 percent, as against its previous closing price of Rs. 457.85. The stock has delivered negative returns of around 5 percent in the last one year, but has gained by over 2 percent in the last one month.

Financial Performance for Q3 FY26

Sona BLW Precision Forgings Limited announced the financial results for the third quarter of FY26 on Friday during late market hours, as per the latest regulatory filings with the stock exchanges.

For the quarter, the company posted a consolidated revenue from operations of Rs. 1,200 crores, reflecting a sequential growth of over 5 percent QoQ compared to Rs. 1,138 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue also grew nearly 38 percent from Rs. 868 crores recorded in Q3 FY25.

Net profit for Q3 FY26 stood at Rs. 150 crore, indicating a decrease of nearly 12 percent QoQ from Rs. 170 crores in Q2 FY26, as well as a marginal year-on-year decline by around 1 percent from Rs. 151 crores reported in Q3 FY25. The reported PAT includes a one-time impact of Rs. 30 crore arising from the implementation of the new labour code.

On an adjusted basis, PAT margins declined by around 2.5 percent, primarily due to lower EBITDA margins and reduced net finance income, partially offset by lower depreciation as a percentage of revenue. During the quarter, EBITDA increased by 30 percent, although the EBITDA margin contracted by approximately 1.8 percent, largely on account of an unfavourable product mix. Further, the company’s Board have declared an interim dividend of Rs. 1.6 per equity share having a face value of Rs. 10 each for FY26.

Order Book, Revenue Mix & More

The company reported a net order book of Rs. 23,500 crores in Q3 FY26, equivalent to about 6.8 times its FY25 revenue. The order book declined marginally from Rs. 23,600 crores at the end of Q2 FY26, after Rs. 600 crores of orders were executed from matured and ramp-up programs during the quarter, while new orders worth Rs. 500 crores were added in Q3 FY26.

Electric vehicle (EV) programs continue to dominate the order book, accounting for Rs. 16,600 crores, or 71 percent of the total. Within EVs, passenger vehicle programs form the largest share, followed by 2Ws and 3Ws, and commercial vehicle (CV) and off-highway vehicles (OHV) segments. 

Non-EV programs account for Rs. 5,600 crores, or 24 percent of the order book, spread across passenger vehicles (PVs), CVs and OHV applications. The railway segment contributes the remaining Rs. 1,300 crores, representing about 6 percent of the total order book.

For 9M FY26, the Differential Gears segment remained the largest contributor at 23 percent, while the Differential Assemblies accounted for 17 percent. Micro/Plug-in Hybrid Starter Motors contributed 17 percent, and Conventional Starter Motors stood at 8 percent. Traction & Suspension Motors contributed 11 percent, Railway-Brake Systems accounted for 9 percent, Railway Suspension & Coupler for 3 percent, Sensors and Software made up 2 percent, and other products increased to 10 percent of total revenue.

Sona BLW Precision Forgings Limited is engaged in the business of manufacturing precision forged bevel gears and differential case assemblies, conventional and micro-hybrid starter motors, EV traction motors etc., for automotive and other applications. As of CY25, the company commands a global market share of 8.7 percent in Differential Gears and 4.2 percent in Starter Motors.

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