Sona Comstar's EV revenue jumps 129%, Margins slip.

Sona BLW Precision Forgings Limited (SONACOMS), also known as Sona Comstar, reported its highest ever quarterly revenue and profit in Q2 FY27. Revenue rose 35% year-on-year to ₹1,547 crore. Net profit increased 30% to ₹223 crore. But the number that caught my attention was not revenue growth. It was the company's changing business mix. Revenue from battery electric vehicles (BEVs) surged 129% year-on-year. BEVs accounted for 51% of automotive revenue, the highest share the company has reported in a quarter. This is a meaningful shift for an auto-component manufacturer. It suggests Sona Comstar is increasingly participating in the electric powertrain supply chain rather than depending only on conventional vehicles. Its order book also provides visibility. The company secured ₹3,600 crore in new orders during the quarter, taking its net order book to ₹25,100 crore. Electric vehicle and robotics-related programmes account for a substantial part of that opportunity. However, there is a detail investors should not overlook. EBITDA increased 23% to ₹356 crore, slower than revenue growth of 35%. EBITDA margin declined to 23% from 25.2% a year earlier. That does not invalidate the growth story, but it raises a question about the profitability of the business mix and the costs of scaling production. My view: Sona Comstar's EV exposure is becoming increasingly important, and the order book supports its long-term growth potential. But a large order book is not a guarantee of future returns. The next things I would track are EV revenue growth, EBITDA margin recovery and the conversion of new orders into actual sales. My stance: The business momentum is strong, but I would want to see margins stabilise as EV revenue becomes a larger share of the business.