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Informist, Thursday, Jul. 23, 2026

By Pratyush Kumar

MUMBAI – Sona BLW Precision Forgings Ltd. is expected to report strong on-year profit and revenue growth for the June quarter due to a robust performance across segments, consolidation of the railway business, and strong demand from automakers, according to brokerages tracking the company. 

The company's consolidated net profit for the June quarter is estimated at INR 1.74 billion, up over 30% on year but down 9% sequentially, according to the average of estimates from eight brokerages. The company's consolidated net sales are estimated at INR 12.78 billion, up over 50% on year but flat on quarter, according to the estimates.

The highest estimate for Sona BLW's net profit for the June quarter is INR 1.77 billion from YES Securities (India) Ltd. and the lowest is INR 1.69 billion from ICICI Securities Ltd. The highest estimate for net sales is INR 13.02 billion from Nomura Equity Research and the lowest is INR 12.34 billion from Nuvama Wealth Management Ltd.

The sharp jump in Sona BLW's June quarter revenue is likely to be led by volume growth in the differential gears business, Nuvama said. Growth in the traction and suspension motor, and starter motor business is also likely to drive sales, the brokerage added.

The expected rise in revenue is also due to consolidation of the railway business into the company, brokerages said. Revenues are likely to grow 20% on year after excluding the company's railways business, ICICI Securities and Kotak Securities Ltd. said.

Overall, auto component companies are expected to report a rise in revenues for the June quarter due to significant growth in production volumes of two-wheelers, passenger vehicles, commercial vehicles, and tractors, Kotak said.

Sona BLW is expected to see a flat top line for the June quarter on a sequential basis as the base business revenues are expected to decline due to lower offtake in the US and Europe, brokerages said.

Sona BLW's earnings before interest, tax, depreciation, and amortisation for the June quarter are estimated at INR 2.93 billion, up 45% on year but down nearly 6% sequentially, according to the average of estimates. The highest estimate for EBITDA is INR 3.01 billion from Nomura and the lowest is INR 2.84 billion from Nuvama.

The company's EBITDA margin is expected to contract in the range of 130-160 basis points due to higher raw material costs, higher operating expenses, a hike in minimum wages in Haryana, and increased freight costs, according to brokerages. The highest estimate for the EBITDA margin is 23.1% from Nomura and the lowest is 22.8% from YES Securities.

Sona BLW Precision Forgings is an automotive component maker specialised in differential assemblies, gears, micro-hybrid motors, and electric vehicle traction motors, among others. The company develops mechanical and electrical hardware systems, components as well as base and application software solutions. Investors will watch out for new order-book additions by the company and the contribution from the electric vehicle component business, YES Securities said.

The company is scheduled to detail its June quarter earnings later on Thursday. At 1210 IST Thursday, shares of Sona BLW traded at INR 726.3 apiece on the National Stock Exchange, flat from Wednesday. The stock is trading 26% higher since the company detailed its March quarter earnings.

Of the eight brokerage reports on the company available with Informist, six have a "buy" recommendation on the stock with an average target price of INR 678 per share, which is over 7% lower than the current market price. Two brokerages have a "hold" recommendation on the stock with an average target price of INR 549.

Following are the Apr-Jun earnings estimates for Sona BLW from eight 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 Shubhayan Bhattacharya

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