SONACOMS Q3 FY26 earnings call.
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Revenue
₹1,200 Cr
verified against source
Revenue YoY
39%
reported change
EBITDA
₹305 Cr
latest reported figure
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Sona Comstar delivered its best quarter ever with Q3 FY26 revenue of ₹1,209 crore (+39% YoY) and EBITDA of ₹305 crore (+30% YoY), despite North America EV volumes declining 45% sequentially. The sharp business recovery—two quarters after what management called the worst quarter since IPO—reflects successful geographic and product diversification: India now contributes 55% of revenue (doubled from FY25), eastern markets account for 58% (up from 33%), and non-automotive revenue surged to 31% (from 9%). BEV revenue reached ₹320 crore, representing 38% of automotive revenue and growing 21% QoQ. The order book stands at ₹235 billion with 71% from EVs. The RFQ pipeline is at historic highs—nearly 3x year-ago levels—with European competitors' financial distress driving supply chain redrawing. EBITDA margin of 25.2% reflects product mix headwinds (-180bps YoY), though management maintained guidance of 24%-26% range. The primary risks are US tariff uncertainties, China's rare earth restrictions, and potential EV policy shifts affecting the 71% EV order book.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated its long-standing EBITDA margin band of 24%-26% despite mix headwinds, citing ability to reject low-margin volume-only opportunities.
- Management expects traction motors and controllers to remain the highest growth segment by far for the next five years, driven by three-wheeler value ramp-up and four-wheeler programs in development.
- Management indicated typical order-to-revenue cycle of 12-18 months for new programs, though running changes (midstream supplier switches) could be shorter at 8-9 months.
- Development work ongoing for four-wheeler segment (cars and commercial vehicles); management expects to provide a meaningful update in approximately 6-7 months.
Risks flagged
- Tariff relief extension for USMCA content for five years for medium and heavy-duty vehicles was positive, but light vehicle tariffs and ongoing trade policy volatility remain headwinds.
- With 71% of the ₹235 billion order book tied to EVs, any policy changes or demand disruption could significantly impact revenue timing. North America EV volumes declined 45% QoQ.
- China's restrictions on heavy rare earth magnet supply to India continue. While the company pivoted to light rare earth magnets successfully, further escalation could disrupt operations.
- While €400-500 million of competitor revenue may be redistributed, conversion from RFQ stage to purchase orders involves commercial negotiations and may not fully materialize in expected timeframes.
Key quotes
- This has been our best quarter ever across all financial metrics, and proud to report that we have, for the first time, crossed INR 1,200 crore in quarterly revenue and INR 300 crore in quarterly EBITDA.
- Our current RFQ pipeline is the strongest in the history of the company and almost three times compared to the same time last year. What it means is the pace of new inquiries is the highest we have ever seen since COVID. This reinforces the hypothesis that I laid out last quarter of anti-fragility, that we have built a business that tends to emerge stronger from these periods of disorder.
- North America, which was the largest market in FY25, has nearly halved for us, while India has doubled in our revenue mix. And we have achieved this without sacrificing growth or margins.
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