Sona Comstar Net Profit Flat at ₹150 Crore Despite 38% Revenue Surge in Q3

Sona BLW Precision Forgings Ltd (Sona Comstar) on Friday reported its financial performance for the October-December quarter, with robust revenue expansion undermined by profitability challenges and regulatory compliance costs. The automotive components specialist recorded consolidated net profit of ₹150.7 crore in Q3FY26, representing a negligible 0.3 per cent year-on-year (YoY) decrease from ₹151.1 crore achieved in the same period last year.

Earnings were constrained by a substantial reduction in non-operating income and a one-off adjustment linked to labour code provisions implemented during the three-month period.

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Revenue from operations climbed 38.2 per cent YoY to ₹1,199 crore, up from ₹867.9 crore in Q3FY25. The significant increase was driven by enhanced volumes across both electric vehicle and traditional mobility divisions, alongside the integration of recently acquired operations.

At the operational level, EBITDA advanced 26 per cent YoY to ₹295.4 crore, compared with ₹234.4 crore in the prior-year quarter. Despite the absolute growth, EBITDA margin contracted to 24.6 per cent from 27 per cent, reflecting cost inflation and operational inefficiencies.

The manufacturer disclosed a ₹40 crore impact stemming from labour code compliance during the quarter, which weighed on profitability metrics.

Other income fell substantially to ₹17 crore from ₹47 crore in the corresponding period last year, creating additional headwinds for net profit expansion.

The quarterly performance underscores Sona Comstar's sustained topline traction amidst continued demand for mobility solutions, whilst near-term profitability faces challenges from regulatory and operational cost pressures.

Performance across business segments was spearheaded by the EV division, which achieved 38 per cent year-on-year revenue growth, propelled by robust demand for traction motors, driveline systems and differential assemblies.

The driveline and differential segment maintained its position as the primary revenue generator, contributing approximately half of consolidated turnover during the quarter.

Meanwhile, EV traction motors and related components sustained strong double-digit expansion, benefiting from the scaling up of new programmes with international original equipment manufacturers.