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Informist, Tuesday, Apr. 28, 2026

By Prateem Rohanekar 

MUMBAI – Sona BLW Precision Forgings Ltd. is expected to report a sharp year-on-year rise in its revenue for the March quarter due to consolidation of its railway business. At least one brokerage expects Sona BLW Precision to outperform its peers in the auto ancillary sector. However, rising input costs and slowing demand from developed markets amid the West Asia conflict could weigh on its margins.

The company's consolidated net profit for the March quarter is expected at INR 1.79 billion, up over 7% on year, according to the average of estimates from seven brokerages. The net profit is, however, expected to decline 6.4% sequentially, estimates show. The company's net sales are expected at INR 12.17 billion, up over 40% on year and nearly 1% on quarter.

Kotak Securities Ltd. has the highest estimate for the company's net profit at INR 1.85 billion and YES Securities (India) Ltd. has the lowest estimate of INR 1.74 billion. The highest estimate for the company's net sales is INR 12.35 billion by Kotak Securities and the lowest estimate is INR 12.01 billion by Motilal Oswal Financial Services Ltd.

Kotak Securities expects revenue to grow 42% on year, mainly driven by the consolidation of its railway business. The company had acquired Escorts Kubota Ltd.'s railway equipment division for INR 16 billion in the June quarter. The brokerage also expects the company's base business, excluding railways, to grow on year, supported by growth in the domestic gear, tractor motor, starter motor, and differential assembly segments. It expects the company's differential business to remain under pressure sequentially due to weak passenger vehicle sales in the US.

YES Securities, however, expects revenue from the company's base business to decline, both on year and sequentially, due to lower offtake in the US. Nuvama expects Sona BLW to outperform peers, forecasting 39% on-year revenue growth, significantly higher than the sector's expected 12% growth. However, brokerages caution that rising input costs and slower demand in developed markets could weigh on margins across the sector in the coming quarters. 

The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, is expected at INR 3.01 billion, up over 28% on year, according to the average of seven estimates. EBITDA is projected to decline 1% sequentially. Elara Securities (India) has the highest estimate for the company's EBITDA at INR 3.10 billion and YES Securities has the lowest at INR 2.93 billion.

YES Securities expects the company's EBITDA margins to contract 240 basis points on year to 24.3% due to cost inflation and the company's higher operating expenses. However, as per Elara Securities, margins across the auto ancillary sector will continue to disappoint due to increasing input costs and inability of companies to pass it to the consumers. The company is scheduled to announce its earnings for the March quarter on Thursday.

As per Nuvama, key things to monitor during the March quarter earnings include order-book additions, especially after European peers, Neapco Europe and AIMS, filed for bankruptcy earlier this month. The management's commentary on the company's share in the electric vehicle business will also be in focus.

Tuesday, shares of Sona BLW Precision closed at INR 598.80 on the National Stock Exchange, up nearly 2% higher. The stock has appreciated over 31% since the company reported its December quarter earnings on Jan. 23.

Of the eight brokerage reports on the company available with Informist, seven have a 'buy' or equivalent recommendation on the stock with an average target price of INR 583. This is nearly 3% lower than the current market price. One brokerage has a 'hold' recommendation on the stock.

Following are the March quarter earnings estimates for Sona BLW Precision Ltd. from seven brokerages in descending order of the estimate of net profit in INR billion:

End 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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