26-Oct-2026 21:45:33
SONA COMSTAR Q2 CONCALL: EV REVENUE UP 129% YOY, ORDER BOOK REACHES ₹25,100 CR & MANAGEMENT TARGETS 25% MEDIUM-TERM GROWTH CAGR
• MANAGEMENT TARGETS APPROXIMATELY 25% MEDIUM-TERM REVENUE CAGR, WITH A LONG-TERM VISION OF 10X BUSINESS GROWTH OVER 10 YEARS UNDER SONA COMSTAR 2.0 • MANAGEMENT MAINTAINS EBITDA MARGIN FRAMEWORK OF 23–25%, WITH NEAR-TERM MARGINS EXPECTED AROUND 23% UNDER STABLE COMMODITY PRICES & CURRENT PRODUCT MIX • COMPANY SECURED ₹3,600 CR OF NEW ORDERS DURING Q2 FY27, TAKING ITS NET ORDER BOOK TO ₹25,100 CR • Q2 REVENUE UP 35% YOY TO RECORD ₹1,546 CR, EBITDA UP 23% TO ₹356 CR & NET PROFIT UP 29% TO ₹223 CR • Q2 EBITDA MARGIN STOOD AT 23%, DOWN 230 BPS YOY, DUE TO INFLATION & HIGHER CONTRIBUTION FROM LOWER-MARGIN TRACTION MOTORS • H1 REVENUE UP 43% YOY TO ₹2,857 CR, EBITDA UP 34% TO ₹659 CR & NET PROFIT UP 36% TO ₹404 CR • EV REVENUE SURGED 129% YOY IN Q2, WHILE BATTERY ELECTRIC VEHICLES CONTRIBUTED 51% OF AUTOMOTIVE REVENUE FOR THE FIRST TIME • H1 BATTERY EV REVENUE UP 119% YOY TO ₹1,042 CR, WITH EV CONTRIBUTION INCREASING TO 48% OF AUTOMOTIVE SALES FROM APPROXIMATELY 30% YOY • TRACTION MOTOR BUSINESS GREW ALMOST 50% QOQ, SUPPORTED BY STRONG DEMAND FROM INDIAN ELECTRIC TWO-WHEELER & THREE-WHEELER MANUFACTURERS • COMPANY HAS 75 ELECTRIC MOBILITY PROGRAMS ACROSS 37 CUSTOMERS, INCLUDING 44 PROGRAMS ALREADY IN PRODUCTION & 31 AWAITING PRODUCTION • MANAGEMENT EXPECTS DENSO JV1 TRANSACTION CLOSING BY DECEMBER 2026 OR JANUARY 2027, WHILE JV2 CLOSING IS TARGETED DURING H1 CY2027 • COMPANY CONTINUES EXPANDING INTO RAILWAYS & ROBOTICS, WITH ₹62 CR PREVIOUSLY ALLOCATED FOR ROBOTICS DEVELOPMENT • H1 OPERATING CASH FLOW REACHED ₹594 CR, REPRESENTING APPROXIMATELY 90% OF EBITDA, REFLECTING STRONG CASH CONVERSION • H1 FREE CASH FLOW REACHED ₹446 CR AFTER ₹148 CR CAPEX, WHILE CASH & INVESTMENTS STOOD AT ₹1,966 CR AT SEPTEMBER-END • MANAGEMENT REMAINS FOCUSED ON EV DRIVETRAINS, GLOBAL CUSTOMER EXPANSION & PRODUCT DIVERSIFICATION; COMMODITY INFLATION, TRACTION MOTOR PRODUCT MIX & NEW BUSINESS EXECUTION REMAIN KEY RISKS
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