More Stories

Informist, Thursday, Apr. 30, 2026

 

Please click here to read all liners published on this story

--Sona BLW: Working to mitigate spike in labour costs via higher prductivity 
--CONTEXT: Sona BLW management's comments in post-earnings analyst concall 
--Sona BLW: Making R&D progress with acquired railway component business 
--Sona BLW: No loss in production due to shortage of gas 
--Sona BLW: Orderbook is broad-based across powertrains, geographies 
--Sona BLW: See growth scope only with customers in China, not OEMs for now 
--Sona BLW: Suspension motor business growth will be fastest by far 
--Sona BLW: See many levers for improvement in railway business in 3-5 yrs 
--Sona BLW: Confident of healthy growth in railway business for next 5 yrs 
--Sona BLW: Always evaluating M&A deals but none worth reporting currently 

By Gunjan Rajput and Shakshi Jain

 

NEW DELHI – Sona BLW Precision Forgings Ltd. flagged inflation as a key headwind, warning that sustained increases in commodity prices--particularly steel, aluminium, and copper over the past five months--along with higher trade, packaging, and energy costs, could push the automobile industry toward a breaking point.

"Actually, almost everything linked to petrochemicals has become more expensive. And while a large part of this commodity inflation is or through, one, some parts are not positive, and two, there is always a lag. And that lag, along with the unexpected impact on both revenue and cost, will put pressure on our partners, which we expect to continue seeing in the foreseeable future," the company's management said in a post-earnings analyst call Thursday. 

 

The company said it is working towards mitigating rising labour costs through higher productivity. "The second headwind....increase in minimum wage, which was announced by the Haryana government on Sept. 1, 2026. This will have a devastating impact on our revenue cost. However, we are working to mitigate it through productivity improvement, through better control on income tradition, and better workload management," the management said. 

The management said it continues to make progress in research and development for its acquired railway components business. The company also highlighted multiple levers for improvement in the segment over the next three to five years and expressed confidence of posting healthy growth over the next five years.   

The company reported a net profit of INR 1.92 billion and revenue of INR 12.72 billion for the March quarter, according to its investor presentation, which was uploaded on the exchanges before its profit and loss statement.

The company sees near-term growth opportunities in China, largely through existing customers rather than original equipment manufacturers for now, the management said.

 

The company reported no production loss due to the recent gas shortage and said its order book remains broad-based across powertrains and geographies. Among segments, the suspension motor business is expected to grow the fastest. "Triple-digit growth is not really common, so it has also got the advantage of a small base, but it will be very, very good because the customer we supply to, their model has had an amazing launch. The product performance and the product acceptance are genuinely overwhelmingly good," the management said. 

 

While it continues to evaluate merger and acquisition opportunities, it said there are no deals worth reporting at present. "It's shareholders' cash. It is our duty as a responsible company to deploy only when we get an opportunity that is amazing and passes all four of our filters that we have already spoken about. Whatever we put in it, we must be able to be confident that the product will last for the next 15 years," the management said. 

Thursday, shares of the company ended at INR 607.25 on the National Stock Exchange, up 1.3% from the previous close.  End

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.