Sona BLW shares jump up to 4% as brokerages remain bullish post Q2 results: Should you buy, sell or hold?

Sona BLW Precision Forgings

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26 Aug, 2025 12:21

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The shares of Sona BLW Precision Forgings jumped more than 4 percent on October 28 after the company released its results for the second quarter of the financial year 2026. Brokerages remained bullish on the stock.

Sona BLW shares hit a high of Rs 503.40 apiece immediately after opening. The stock then pared some gains and was trading only 1 percent higher at Rs 489.90 apiece, as seen at 9.25 am.

Sona BLW Q2 Results:

The company on October 27 reported a net profit of Rs 172.77 crore for Q2 FY26. This marks a 20 percent year-on-year (YoY) increase from the Rs 143.94 crore net profit reported in the same period last year. The firm's revenue from operations meanwhile rose over 23 percent YoY to Rs 1,138.29 crore.

Sona BLW reported a 13 percent YoY rise in EBITDA to Rs 289 crore, with an EBITDA margin of 25.3 percent. Speaking about the company’s performance during the quarter, Sona BLW MD & Group CEO Vikram Singh said, “We achieved our highest-ever quarterly revenue, EBITDA, and net profit in Q2 FY26. Our revenue grew by 24% year-on-year, primarily driven by the expansion of our electric vehicle traction motor and railway business in India. Due to the unavailability of heavy rare-earth magnets, we shifted to alternative motor designs and now manufacture light rare-earth magnet motors for electric two-wheelers. We have developed a rare-earth-free ferrite-assisted synchronous reluctance motor for three-wheelers and light commercial vehicles. It was also a successful quarter for business development as we won several significant new orders.”

Nomura on Sona BLW:

Nomura kept a ‘Buy’ call on the stock, while raising its target price to Rs 605 per share. This implies an upside potential of more than 25 percent from the stock’s previous closing price. The brokerage noted that the firm is delivering well in tough times.

Q2 revenue beat estimates, led by performance in railways and traction motor segments, Nomura said. It added that potential business wins from struggling auto component suppliers in EU will be a key upside.

Normura said that the stock trades at 39x FY27 EPS, which looks attractive.

CLSA on Sona BLW:

CLSA kept an ‘Outperform’ call on the stock, with a target price of Rs 570 per share. This implies an upside potential of nearly 18 percent from the stock’s previous closing price.

The international brokerage said that Q2 EBITDA margin was 228 basis points higher than estimate. It however noted that one of the key global EV customers continued to face challenges for one of its main models. The company also highlighted that three of its direct competitors in Europe have filed for insolvency. Competitors’ insolvency could potentially lead to company receiving more orders from Europe, it said.

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