Shares of are in focus today as investors cheered a strong Q2 earnings beat and a bullish outlook from analysts. The stock gained nearly 4 per cent in early trade.
The company reported 20 per cent y-o-y increase in the net profit for the quarter ended September 2025 at ₹172.8 crore compared to ₹143.9 crore in the year-ago period. Its revenue from operations increased by 23 per cent to ₹1,138.3 crore in the quarter under review as against ₹922.2 crore in the same quarter last year.
According to the company’s statement, the revenue share from battery electric vehicles (BEV) stood at 32 per cent and the EBITDA was at about ₹289 crore with a margin of 25.3 per cent, and 13 per cent y-o-y growth.
Vivek Vikram Singh, MD & Group CEO, Sona BLW, said that the comapny shifted to alternative motor designs and manufactures light rare-earth magnet motors for electric two-wheelers due to the unavailability of heavy rare-earth magnets.
It has developed a rare-earth-free ferrite-assisted synchronous reluctance motor for three-wheelers and light commercial vehicles.
Commenting on the achievement, Singh said, “We have been nominated for two additional programs—one in Asia and the other in Europe—to supply our motors and motor controllers for predictive active suspension systems. We received our first order from our new driveline plant in Mexico to supply differential assemblies to an OEM in the USA, amid ongoing trade uncertainties. Lastly, we are partnering with Neura Robotics to jointly develop advanced components and technologies, with a focus on industrialising robots, cobots, and humanoids in India and other markets.”
Target prices trimmed but outlook positive
Brokerages remained upbeat on Sona BLW Precision Forgings, highlighting resilient margins, strong revenue growth, and expanding global opportunities despite short-term challenges in its EV business. However, some brokerages have trimmed the target prices, maintaining positive stance.
Global brokerage CLSA maintained an outperform rating with a target price of ₹570, noting that the company’s Q2 EBITDA margin was 228 basis points higher than estimates, even though BEV revenue declined and the newly integrated railway business had lower margins.
Nomura reiterated its buy rating and raised its target price to ₹605, emphasising Sona BLW as a strong performer in “tough times.”
CITI trimmed its target price to ₹610 (from ₹630) while keeping a positive view. It said EBITDA was slightly above expectations due to higher revenue and better margins, while PAT was in line as other income came in lower.
Nuvama Institutional Equities retained buy call at a trimmed target price of ₹550 from ₹560 earlier. It emphasised that the company remains a key beneficiary of electrification in both the overseas and domestic markets. However, the brokerage reduced the FY26/27 EBITDA estimates by up to 2 per cent, factoring in a slowdown in the underlying industry and postponement of joint venture with Jinnaite of China.
We reckon FY25–28 estimates for revenue and EBITDA CAGR would be 17 per cent and 14 per cent, respectively, led by a large order book and addition of railways’ business, Nuvama added.
Meanwhile, integrating railway division’s financials, Motilal lowered the target multiple for the consolidated entity to 34x from 36x earlier. Motilal Oswal has maintained a neutral rating on the stock at 448 as the target price.
The stock traded flat at ₹488 on the at 10.32 am, soaring 4 per cent in early trade to a high of ₹502.80 against the previous close of ₹483.65.