Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) rose over 2% to ₹491.10 in early trade on Thursday after the company posted a 10.3% YoY rise in net profit for Q4FY25 at ₹164 crore, despite lower revenue and operating margin pressures.
In Q4, revenue declined 2.2% YoY to ₹864.8 crore, while EBITDA slipped 6.3% to ₹231.3 crore. EBITDA margin came in at 26.8%, slightly below last year’s 27.9%. Adjusted for PLI benefits, the margin was even lower at 25.4%.
However, investor sentiment remained steady, supported by strong EV momentum. Battery electric vehicles (BEVs) contributed 35% of Q4 revenue, with BEV revenue rising 8% YoY. The company’s total order book stands at ₹24,200 crore, with 77% from EV programmes.
Despite the earnings beat on net profit, analysts have mixed views:
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CLSA cut its target to ₹582 (from ₹712), citing EV customer transitions and margin pressures.
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Jefferies lowered its target to ₹565 (from ₹700), maintaining a “buy” but flagged tariff risks and slower volumes.
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Citi, however, raised its target to ₹590 (from ₹570), citing long-term growth strength, but trimmed FY26-27 earnings forecasts.
Of the 18 brokerages tracking the stock, 12 have a “buy” rating, while 3 each recommend “hold” or “sell”.
The near-term outlook remains cautious amid US tariff uncertainties and cost escalations, but the long-term growth story—anchored in EV and global expansion—remains intact.
