Sona Comstar hits record profit, bags Rs 24,200cr EV orders—Is this the next big auto stock?

Sona BLW Precision Forgings Ltd. (Sona Comstar), one of India’s leading mobility technology companies, reported a record-breaking quarterly performance for the final quarter of FY25, defying a modest revenue dip. The Gurugram-headquartered auto component manufacturer posted a net profit of ₹164 crore in Q4 FY25, marking a 10% year-on-year increase and the highest quarterly profit in its corporate history. Despite a 2% drop in revenue to ₹868 crore due to a production model transition at a major customer, the company’s profitability surged, underscoring strong margin control and operational efficiency.

These results cement Sona Comstar’s status as a rising force in India’s evolving EV components landscape, supported by an expanding global customer base and a growing share of BEV-derived revenue.

What Were Sona Comstar’s Q4 FY25 Financial Highlights?

The fourth quarter of FY25 saw Sona Comstar maintain EBITDA margins at a robust 27.1%, generating operating earnings of ₹235 crore. The net profit margin for the quarter stood at an impressive 18.8%, reflecting the company’s ability to protect margins even amid near-term volume disruptions. The revenue decline during the quarter was primarily driven by a temporary transition to a new model by a large OEM client. However, production volumes resumed in March, suggesting limited impact going forward.

On a full-year basis, the company recorded ₹3,555 crore in consolidated revenue, representing a 12% increase over FY24. Full-year EBITDA rose 8% to ₹975 crore, while net profit grew 16% to ₹601 crore. The annual net profit margin was 16.9%, confirming the company’s consistent financial discipline across both electrified and non-electrified segments.

Why Is BEV Revenue a Key Strategic Growth Engine for Sona Comstar?

A standout feature of Sona Comstar’s FY25 performance was the sharp rise in Battery Electric Vehicle (BEV) revenues. The company reported BEV sales of ₹1,280 crore in FY25, up 38% from the previous year. The contribution of BEV to total revenue rose from 29% in FY24 to 36% in FY25, reinforcing the company’s focus on the electric vehicle value chain.

In Q4 FY25 alone, BEV revenue increased 8% year-on-year to ₹294 crore, accounting for 35% of total quarterly sales. Management attributed this growth to sustained momentum across its global EV program portfolio, as well as the addition of new platforms from both legacy and startup OEMs.

By targeting mission-critical components like differential assemblies, geartrains, traction motors, and sensors tailored to electrified mobility, Sona Comstar has strategically repositioned itself to capture rising BEV adoption in key geographies including North America, Europe, and China.

How Is Sona Comstar’s Order Book Shaping Up for FY26 and Beyond?

As of March 31, 2025, Sona Comstar’s net order book stood at ₹24,200 crore, the highest on record for the company. Crucially, 77% of this total stems from EV programs, underlining the structural shift in customer demand and the success of the company’s R&D-driven product strategy.

The company added four new EV programs and two new customers during FY25, bringing the total to 58 awarded EV programs across 32 clients. A major addition in Q4 came from a North American electric vehicle OEM, which awarded Sona Comstar a contract to supply rotor-embedded differential sub-assemblies and epicyclic geartrains. This win alone added ₹1,520 crore to the order book, with production slated to begin in Q4 FY26.

Another key development was the commercialization of a new product—the Steering Bevel Box—which was awarded by a global commercial vehicle OEM. This program, valued at ₹110 crore, is expected to begin production in Q3 FY26 and extends Sona Comstar’s portfolio beyond its core driveline offerings.

Is Sona Comstar Expanding into Future Mobility Segments Like Robotics?

While much of the current focus remains on EVs, Sona Comstar is also preparing for long-term mobility shifts. Notably, the company has begun developing components for humanoid robots, anticipating rapid adoption in the next decade driven by AI, 3D perception, and falling computing costs. Management stated that the company’s expertise in gears, motors, controllers, radar sensors, and embedded software positions it well to serve this emerging domain.

By diversifying into adjacent sectors such as robotics while maintaining its core strengths in electrified mobility systems, Sona Comstar aims to future-proof its revenue streams and capitalize on converging trends across automation and automotive sectors.

What Does Market Sentiment Indicate for Sona Comstar Stock?

The upbeat FY25 performance and solid forward order visibility have fueled a constructive market outlook for Sona Comstar (NSE: SONACOMS). Despite macro pressures and sector-wide volatility in early 2025, the stock has held its ground over recent weeks. Investor sentiment appears to be buoyed by the company’s growing EV pipeline, strong operating margins, and strategic wins from global OEMs.

Institutional activity reflects this confidence. Foreign Institutional Investors (FIIs) marginally increased holdings in Sona Comstar during Q4 FY25, particularly after the announcement of the North American EV order in March. Simultaneously, Domestic Institutional Investors (DIIs), especially mutual funds focusing on mobility and industrial innovation themes, have maintained steady positions.

Brokerages covering the company have broadly reiterated “Buy” or “Accumulate” ratings. Analysts highlight the ₹24,200 crore order book, 77% of which is EV-centric, as a powerful earnings visibility marker. They also point to the 36% BEV revenue share as evidence of Sona Comstar’s positioning in the next phase of global automotive evolution.

However, some experts have cautioned that near-term stock performance could remain range-bound due to production delays at OEM partner facilities or softening demand in mature markets. The recent production disruption linked to a model shift has already served as a reminder of such cyclical risks.

Most analysts agree that Sona Comstar remains a long-term play for investors focused on electrification, global mobility shifts, and industrial automation. The company’s entry into humanoid robotics is viewed as a speculative but potentially high-upside frontier that could differentiate it from traditional peers.

How Is Sona Comstar Positioned for FY26?

Looking ahead, the outlook for FY26 remains favourable. The company’s robust BEV order book, geographic diversification, and strong relationships with leading global OEMs provide a solid platform for growth. Additionally, the successful commercialization of new products like the Steering Bevel Box hints at a broadening revenue base that may reduce over-reliance on any single customer or platform.

With OEMs continuing to invest in electrification, and governments across key markets incentivizing EV adoption, Sona Comstar’s core offerings appear aligned with long-term demand dynamics. Analysts also anticipate the firm’s R&D initiatives to result in further high-value program wins, especially in next-gen electric mobility platforms.

From a stock performance perspective, the company’s margin resilience and ability to execute on large-scale orders are likely to remain key differentiators in a competitive market. Continued visibility into new orders and production ramps, coupled with clear disclosure, will be crucial in sustaining investor interest.