Sona BLW Q2 FY27 Profit Surges 30% as BEV Revenue Jumps 129% to Rs 606 Crore

The Quick Take

• Sona BLW Q2 FY27 net profit grew 29.9% year-on-year to Rs 223.4 crore on 35.2% revenue growth
• Battery electric vehicle revenue surged 129% to Rs 606.1 crore, reshaping the company's earnings mix
• Margins contracted to 23% from 25.2% as BEV segment scaling costs weighed on near-term profitability

Sona BLW Precision Forgings reported strong second-quarter FY27 results with net profit rising 29.9% year-on-year to Rs 223.4 crore, supported by a 35.2% surge in revenue to Rs 1,546.4 crore. The headline numbers were overshadowed by the remarkable performance of the company's battery electric vehicle segment, where revenue accelerated 129% year-on-year to Rs 606.1 crore — reflecting the growing share of EV-driven demand in Sona BLW's order portfolio. The company's net order book stood at a robust Rs 25,100 crore, providing strong revenue visibility for the next several years.

The EBITDA margin contraction to 23% from 25.2% a year ago reflects the cost dynamics of scaling a rapidly growing BEV segment. Higher-volume BEV components typically carry initial manufacturing cost inefficiencies as production lines ramp and automation investment occurs ahead of full utilisation. As BEV volumes scale further, margin recovery is expected as fixed cost absorption improves. Sona BLW's 129% BEV revenue growth rate significantly outpaces the broader Indian and global EV adoption curve, reflecting both market share gains with new OEM customers and acceleration of existing EV model production volumes by automotive clients.

Sona BLW's results position it as one of India's most compelling plays on the global EV supply chain transition. The company supplies precision-engineered components to both domestic and international EV manufacturers, giving it diversified revenue exposure across geographies and OEM customer bases. The Rs 25,100 crore order book — representing multiple years of forward revenue at current run rates — reduces earnings uncertainty and supports valuation multiples that investors have assigned to the stock. Any further order book additions or margin recovery signals in H2 FY27 could serve as positive catalysts for the company's premium-rated shares.

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