Sona BLW Precision Forgings is entering its next phase of growth with a record order book, rising exposure to electric vehicles, expansion into railways and new business wins in Europe. The company is also scaling newer product lines, including suspension motors, while shifting a larger share of its business towards Asian markets. These initiatives are broadening its revenue base beyond conventional automotive components.
The company had a net order book of Rs 23,700 crore at the end of FY26, equivalent to 5.3 times its annual revenue. It had secured 67 electric vehicle programmes across 35 customers, underlining the growing contribution of electrification to its business. The stock had risen 52% as of July 22, 2026.
Sona BLW manufactures components and systems for automotive and mobility applications. Automotive contributes 68% of revenue, while non-automotive businesses account for 31%.
Within the automotive business, gears account for 22% of revenue, followed by differential assemblies at 17%, plug-in hybrid starter motors at 16%, traction and suspension motors at 11%, conventional starter motors at 7% and other products. The company holds an 8.7% global market share in differential gears and 4.2% in starter motors.
Battery electric vehicle programmes contributed 35% of FY26 revenue, matching the share from power source-neutral products. Hybrid and micro-hybrid applications accounted for 20%, while products dependent on internal combustion engines contributed the remaining 10%. Passenger vehicles generated 49% of revenue, followed by electric two- and three-wheelers at 10% and commercial vehicles at 9%.
EV Expansion
Electrification continues to underpin the company’s future growth strategy, with traction and suspension motors emerging as important revenue contributors.
Management said the suspension motor business is expected to record triple-digit growth in FY27, with volumes likely to increase three to four times from FY26 levels. It added that traction motors should continue to expand at high double-digit rates after becoming an established business.
Together, traction and suspension motors contributed 11% of product revenue in FY26.
Management attributed the growth to customer ClearMotion, which has launched premium vehicle models equipped with these systems in China and Europe. To support future demand, the company has installed annual manufacturing capacity for 10 lakh electric motors.
Management also said enquiries for these products remain strong. It noted, however, that traction motors generate lower margins than the company’s differential gear and assembly business. The higher contribution from traction motors reduced EBITDA margin by about 270 basis points to 24.7% in FY26.
Market Shift
Sona BLW’s “Look East” strategy is reshaping its geographic revenue mix as Asian markets account for a growing share of business.
Eastern markets contributed 60% of revenue in the fourth quarter of FY26, compared with 40% a year earlier. India’s share increased to 51% in FY26 from 29% in FY25. During the same period, North America’s contribution declined to 27% from 41%, while Europe’s share fell to 17% from 24%.
Europe nevertheless remains an important market for the company.
During the quarter, Sona BLW secured four driveline orders worth Rs 580 crore from European original equipment manufacturers, including its first electric vehicle order from the region in nearly four years.
Management said battery electric vehicle sales in Europe rose nearly 45% year-on-year in March 2026. It added that bankruptcies among several European component suppliers have created an opportunity to gain market share over the next 12 months.
The company also expects NOVELIC, its sensor and software business, to benefit from Europe’s 2027 NCAP regulations requiring in-cabin monitoring systems for vehicles seeking the highest safety ratings. Management said it is industrialising its first in-cabin radar solution to address that opportunity.
Railway Push
The railway business has become a key pillar of Sona BLW’s diversification strategy.
The non-automotive business contributed 31% of revenue in FY26, up from 9% a year earlier, mainly because of the acquired railway business.
The company has expanded its portfolio to include locomotives, passenger coaches, train sets and metro systems. During the fourth quarter, it entered the passenger comfort systems segment after securing approvals and beginning commercial production of electric control panels and HVAC systems.
Management said these businesses open an addressable market of Rs 2,000 crore to Rs 2,500 crore for HVAC systems and about Rs 1,500 crore for electric control panels. The railway business has an order book of Rs 1,300 crore, representing about 5% of the company’s total order book.
The company’s financial performance reflected continued business growth during FY26.
Revenue rose 26% year-on-year to Rs 4,475 crore. EBITDA increased 13% to Rs 1,107 crore, while EBITDA margin stood at 24.7% because of higher fixed costs and changes in product mix. Net profit, excluding an exceptional item of Rs 30 crore, increased 11% to Rs 670 crore.
The company generated free cash flow from operations of Rs 290 crore and ended FY26 with liquidity of Rs 1,269 crore. Return on capital employed stood at 15.4%, while return on equity was 13.2%, with both metrics affected by the equity dilution completed during the previous year. At the current share price of Rs 726, Sona BLW trades at 69 times FY26 earnings, compared with 54 times for Uno Minda.
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