Sona BLW Precision jumps 6% post Q3 results; what should investors do?

Sona BLW Precision reported profit after tax of ₹150.7 crore in Q3FY26, down marginally 0.3 per cent year-on-year from ₹151.2 crore in the year-ago period

Sona BLW Precision Forgings share price today: Shares of automotive technology company Sona BLW Precision Forgings surged nearly 6 per cent to hit an intraday high of ₹482.45 on the National Stock Exchange (NSE) after the company reported better-than-expected earnings for the October-December quarter of fiscal 2026 (Q3FY26). 

 

At 10:30 AM, the company's share price was trading 3.3 per cent higher at ₹471.35 compared to the previous session's close of ₹456.10 on the NSE. In comparison, the NSE Nifty50 was up 0.33 per cent at 25,131.60 levels. The market capitalisation of the company stood at ₹29,311 crore. The stock has recovered around 27 per cent from the 52-week low of ₹380 touched on April 7, 2025.  FOLLOW STOCK MARKET UPDATES TODAY LIVE

 

Sona BLW Precision Q3 results

In the Q3FY26, Sona BLW Precision reported profit after tax (PAT) of ₹150.7 crore, down marginally 0.3 per cent year-on-year (Y-o-Y) from ₹151.2 crore in the year-ago period. The company's revenue grew 39 per cent Y-o-Y to ₹1,208.5 crore in the December quarter against ₹868 crore in the year-ago period. Profitability was impacted by a sharp decline in other income and the one-time labour code adjustment during the quarter. The company reported a labour code impact of ₹40 crore during the quarter. 

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 30 per cent Y-o-Y to ₹304.6 crore. However, Ebitda margin declined to 25.2 per cent from 27 per cent in the year-ago period. 

Analysts on Sona BLW Precision Q3 results

According to JM Financial, despite meaningful headwinds in North America, Sona BLW’s EV business grew 21 per cent Q-o-Q (down 3 per cent Y-o-Y), led by traction from other geographies, particularly Europe. On the demand outlook, three direct European competitors in the driveline space (differential assemblies/gears) have entered insolvency proceedings, resulting in a rise in enquiries from the region. 

 

Additionally, the company management highlighted that nearly EUR 400–500 million of driveline business could be redistributed from financially stressed European players, presenting a sizable opportunity for Sona BLW.

 

In the starter motor segment, the exit of 5–6 large global players is driving incremental enquiries for the company. Additionally, Sona BLW’s swift transition away from heavy rare-earth metals, amid ongoing restrictions on heavy rare-earth magnets from China, has enabled it to capture a larger share of the wallet, supporting strong growth in the traction motor business.   ALSO READ | UltraTech Cement rises 4% post strong Q3 show; is there more upside ahead? 

According to the brokerage, future growth in the railway and other segments is expected to be driven by recently launched products such as air springs, integrated hydraulic motors and controllers, and radar modules, along with upcoming launches including automatic plug doors and HVAC systems.

 

The brokerage has marginally revised its estimates to reflect management’s Ebitda margin guidance of 24–26 per cent and maintained a 'Buy' rating with a target price of ₹550 for March 2027, based on 35x FY27E EPS.

 

Analysts at MOFSL have raised their FY27E and FY28E earnings estimates by 6 per cent each, citing better-than-anticipated revenue growth in Q3. The revenue beat was led by a better-than-expected pick-up in BEC revenue in Q3. However, the global auto demand slowdown and a slower-than-expected EV transition in key markets remain the key concerns for the company, the brokerage said in its note. 

 

The brokerage expects Sona BLW Prevision to deliver a 17 per cent/14 per cent/13 per cent CAGR in revenue, Ebitda, and PAT over FY25–28. However, at 35.8x/32x FY27E/FY28E, the stock appears fairly valued. MOFSL has maintained its 'Neutral' rating on the stock, with a target price of ₹488, valued at 35x Dec’27E EPS.

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