Sona Comstar Q3 FY26: Revenue up 39%, dividend ₹1.60

Revenue growth led by EV traction motors and railways

Sona BLW Precision Forgings Limited (Sona Comstar, NSE: SONACOMS) reported a strong operating quarter in Q3 FY26, with growth attributed to its electric vehicle traction motor and railway businesses in India. Revenue rose 39% year on year to ₹1,208.5 crore, as the company scaled newer product lines alongside its core automotive systems business. The management highlighted the quarter as a record period for revenue and profitability metrics. While the company did not provide forward guidance, it pointed to its order book as a source of medium-term visibility.

The quarter matters for investors because it combines high revenue growth with a notable shift in product mix. The mix change also shows up in margins, which softened despite higher EBITDA. Alongside results, the board announced an interim dividend for FY2025-26, adding a corporate action catalyst for shareholders.

Q3 FY26 profitability and margin movement

EBITDA increased 30% year on year to ₹304.6 crore in Q3 FY26. The EBITDA margin stood at 25.2%, down from 27.0% in Q3 FY25. The company attributed the margin change to a shift in product mix.

In earnings commentary, Vivek Vikram Singh, Managing Director and Group CEO, said the company delivered its highest-ever quarterly revenue, EBITDA, and adjusted net profit in Q3 FY26. He linked the revenue jump primarily to the expansion of electric vehicle traction motor and railway business in India. The management also highlighted the quarter as one of its better periods for BEV contribution, even though BEV revenue itself declined year on year.

BEV revenue: lower YoY, higher share in automotive mix

Business and operational updates showed BEV (battery electric vehicle) revenue declined 3% year on year to ₹320.2 crore in Q3 FY26. Despite the decline, BEV revenue still accounted for a higher 38% share of automotive product revenue, up from 32% in Q2 FY26.

Management described Q3 FY26 as the second-best quarter to date in terms of absolute BEV revenue and BEV share. The numbers indicate that BEV-linked products remained a large portion of the automotive product basket, even as quarterly growth came from other lines such as traction motors and railways.

Order book visibility and medium-term runway

Sona Comstar said its net order book stood at ₹23,500 crore as of 31 December 2025. The company positioned this as a driver of revenue visibility over the medium term. While the company did not break down the order book by segment in the provided material, the management’s emphasis on EV traction motors and railways suggests these businesses are central to the current growth cycle.

For an auto component supplier, order book and program wins influence capacity planning and capex sequencing. The company has also spoken about diversification, including customer mix optimisation, in past commentary referenced in the material.

Interim dividend announced: amount and record date

The board declared an interim dividend of ₹1.60 per equity share for the financial year 2025-26. The record date was fixed as Friday, 30 January 2026.

For shareholders, the announcement provides clarity on the near-term corporate action schedule. The company’s face value is ₹10 per share, as shown in the stock snapshot included in the material.

Earnings call: management team and key discussion points

The Q3 FY26 earnings call (dated 23 January 2026) featured multiple corporate participants, including Vivek Vikram Singh (MD and Group CEO), Praveen Chakrapani Rao (Group CTO), Rohit Nanda (Group CFO), and Sat Mohan Gupta (CEO of the motor business). The management team also referenced leaders across driveline, railway business, strategy and M&A, and investor relations.

In one exchange on the call, Rohit Nanda said an estimate for an item under discussion was “around ₹4 crore a year,” while adding that rules were yet to be notified and understanding would improve over time. The call also included commentary around an acquisition and ramp-up timelines.

Acquisition commentary: RED business valuation and historical metrics

During management commentary in the provided transcript, Vivek Vikram Singh said the company would acquire the RED business at an enterprise value of INR 16 billion (₹1,600 crore). He added that after closing, the transition was expected to be EPS-accretive from the first year.

Management also stated that the last year revenue from this business was about ₹900 crore, with an EBITDA margin of about 18%. The company reiterated it does not give future guidance, and it limited commentary to historical metrics. In another exchange, Vadapalli Vikram Verma said production was expected to start in Q2 or Q3 of next year, with Vivek Vikram Singh clarifying it was in calendar year terms.

Company profile: footprint and positioning

Sona BLW Precision Forgings is described as one of the world’s leading automotive technology companies, supplying mission-critical automotive systems and components to automotive OEMs. The company operates nine manufacturing and assembly facilities across India, the USA, Mexico, and China. It is primarily engaged in designing, manufacturing, and supplying engineered systems for electrified and non-electrified powertrain segments.

The material also notes that the company was founded in 1995 and listed in 2021 after an IPO. Vivek Vikram Singh is listed as Managing Director, and Jeff M Overly is listed as Chairman in the company details included.

Key numbers at a glance

Valuation snapshot from provided data

The material included two market-cap snapshots and key ratios. One table showed a market cap of ₹31,928 crore, while an overview section listed market cap as ₹34,465.86 crore along with a different P/E figure. Both sets are reproduced here as presented.

Why the quarter matters for investors

Q3 FY26 combined high top-line growth with a margin decline driven by product mix, making the quality of growth a key takeaway. The traction motor and railway expansion in India was explicitly cited as the main revenue driver, while BEV revenue share improved sequentially even with a small year-on-year decline in BEV revenue.

The order book disclosure of ₹23,500 crore as of 31 December 2025 adds an important medium-term datapoint for investors tracking execution, especially as the company scales EV-related programs and adjacent verticals. The interim dividend announcement, with a defined record date, also provides near-term clarity for shareholders.

Closing note

Sona Comstar’s Q3 FY26 results highlighted rapid revenue growth, improving BEV mix within automotive products, and continued emphasis on EV traction motors and railways in India. The next set of datapoints for the market will be any further updates on order book conversion and timelines referenced in management commentary, alongside scheduled corporate action milestones tied to the dividend record date.