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Informist, Thursday, Jul. 23, 2026

 

--Sona BLW: Inflation biggest near-term challenge, commodity costs high

--Sona BLW: Margins may be under pressure owing to high costs, uncertainty

--CONTEXT: Comments by Sona BLW Precision mgmt in post earnings analyst call

 

By Sunil Raghu and Eshitva Prakash

AHMEDABAD/MUMBAI – Sona BLW Precision Forgings Ltd. flagged inflation as a key headwind, warning that sustained increases in commodity prices and other input costs were the biggest near-term challenges, with margins likely to stay under pressure despite an improving demand environment, the company's management said during its post-earnings analyst call on Thursday.

 

The management said that the commodity costs remained elevated during the June quarter, hurting profitability as cost inflation outpaced customer pass-through. While April and May were "particularly challenging", June saw an improvement as material cost pass-throughs and cost mitigation measures started taking effect, the company management said. However, the impact of higher costs and delayed customer recoveries could continue to weigh on margins in the near term. The company official also pointed out to the uncertain global operating environment due to trade and geopolitical developments. The management expects margin recovery measures to become more visible from the September quarter, as customer price pass-through gather pace.

 

Despite the margin pressure, Sona BLW said underlying business momentum remained robust across key markets. India posted another strong quarter, led by passenger vehicles and electric two-wheelers, while Europe continued to grow and demand in the US improved sequentially. Battery electric vehicle revenue more than doubled during the quarter, taking its share of automotive revenue to a record high, supported by healthy order wins across electric vehicles, hybrid and internal combustion engine platforms, the company official said.

 

Sona BLW reported a bottom line of INR 1.81 billion for the June quarter, up 45% on year from INR 1.25 billion. The company's revenue from operations, including forex gains, rose 54% on year to INR 13.10 billion from INR 8.51 billion. Thursday, Sona BLW's shares ended at INR 719.75 apiece on the National Stock Exchange, down nearly 1% from Wednesday. The company announced its earnings after market hours.  End

 

Edited by Akul Nishant Akhoury

 

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