Auto components major Sona BLW Precision Forgings Ltd on Friday (March 20) has approved a capital expenditure of ₹622 million (₹62.2 crore) for gear capacity enhancement in its driveline business for FY2026-27.
The company plans to add 4.1 million gears to its existing capacity of 64.1 million, with the expansion expected to be completed by FY2027-28. The capex will be funded through internal accruals and/or debt.
In governance updates, the board noted the resignation of Ajay Pratap Singh as senior vice president (legal), company secretary, and compliance officer, effective April 15, 2026. An interim arrangement has been made for day-to-day compliance.
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The board appointed Suman Poddar as company secretary and key managerial personnel, and Arjun Singh as compliance officer, both effective April 16, 2026. Poddar has over 16 years of experience in corporate secretarial, governance, compliance, and mergers & acquisitions and has been with Sona Comstar for more than eight years.
Arjun Singh, a qualified company secretary with an LLB and economics degree, brings over nine years of experience in corporate secretarial and regulatory compliance, including IPOs, M&As, rights and preferential issues, ESG, joint ventures, and corporate restructuring.
Third quarter results
The auto components maker posted a marginal 0.3% year-on-year (YoY) decline in consolidated net profit at ₹150.7 crore in Q3FY26, compared with ₹151.1 crore in the corresponding quarter last year. Profitability was impacted by a sharp fall in other income and the one-time labour code adjustment during the quarter.
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Revenue from operations surged 38.2% YoY to ₹1,199 crore, up from ₹867.9 crore in Q3FY25, driven by higher volumes across electric vehicle and conventional mobility segments, along with consolidation of acquired businesses.
At the operating level, EBITDA rose 26% YoY to ₹295.4 crore, compared with ₹234.4 crore a year earlier. However, EBITDA margin narrowed to 24.6% from 27%, reflecting cost pressures and operating deleverage. The company also reported a labour code impact of ₹40 crore during the quarter.
Other income declined sharply to ₹17 crore, from ₹47 crore in the year-ago period, further weighing on bottom-line growth. Segment-wise, the performance was led by the EV business, which recorded a 38% year-on-year revenue growth, supported by strong traction in traction motors, driveline and differential assemblies.
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Shares of Sona BLW Precision Forgings Ltd ended at ₹502.95, up by ₹5.05, or 1.01%, on the BSE today, March 20.
