Sona BLW Q2 FY27: consol PAT +31% YoY to ₹223 Cr, margin still shy of 23-25% band

Sona BLW Precision Forgings' consolidated (primary basis) Q2 FY27 revenue came in at ₹1,535.84 Cr, up 34.3% YoY and 17.2% QoQ, with consolidated PAT (profit for the period) of ₹222.99 Cr, up 30.8% YoY and 24.9% QoQ on a basic EPS of ₹3.58. Both beat our pre-result preview range (revenue ₹1,300-1,350 Cr, PAT ₹165-185 Cr, EBITDA ~₹230-260 Cr) — EBITDA this quarter works out to roughly ₹343.7 Cr. Standalone PAT was ₹197.38 Cr on revenue ₹1,377.04 Cr, up a slower 18.7% YoY and down 10.3% QoQ — the standalone-vs-consolidated gap (18.7% vs 30.8% YoY PAT growth) shows the overseas subsidiaries (Comstar's EV/motor units, Novelic) growing materially faster than the standalone India business this quarter.

The margin picture is the softer part of the print. Operating margin works out to roughly 22.4% of revenue, down from ~23.1% in Q1 FY27 and ~25.1% a year ago — below management's reaffirmed FY27 EBITDA margin band of 23-25%, and a miss against the explicit guidance given last call that margins would recover "Q2 onwards" as cost pass-throughs caught up; instead the ratio slipped further sequentially. Net margin was 14.5%, essentially flat-to-down YoY (~15.0% a year ago) even though it improved from Q1's 13.4% — the pressure sits mainly on the operating/cost line rather than below EBITDA. No exceptional items hit either statement this quarter; the year-ago quarter's small ₹1.67 Cr pre-tax exceptional item is immaterial enough that adjusted YoY PAT growth (~29.9%) barely differs from the reported 30.8%.

The stock went into the print at ₹781.9, down 6.1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

On corporate developments, the July 22, 2026 definitive agreements with Japan's DENSO to form two EV traction-motor/controller JVs (51:49 ownership, split by vehicle category) remain pre-revenue this quarter — management has disclosed no FY27/FY28 revenue targets or SOP timing for either JV. Separately, the company flagged a ₹2.15 Cr GST input-tax-credit reversal demand plus a ₹21 lakh penalty in August 2026 (not booked as an exceptional item this quarter) and terminated a Chennai solar project with Cleanteach on October 6, 2026 — both immaterial to the quarter's numbers. No management press-release commentary accompanying this result was available to cross-check against the figures.