Revenue grew 51.84% YoY, but operating margin fell to 23.19%
Expenses grew faster than revenue, while other income contributed 29.67% of pre-tax profit; the initial stock move was smaller than its usual results-day swing.
Filed 23 Jul 2026, 16:19 IST · after market close · Sona BLW Precision Forgings Ltd (SONACOMS)
Key takeaways
- Standalone revenue grew 51.84% year on year, but faster expense growth narrowed operating margin by 1.88 percentage points to 23.19%.
- Net profit rose 83.23% year on year, helped by other income contributing 29.67% of pre-tax profit and a 5.45-percentage-point fall in the tax rate.
- The stock initially fell 0.25% after the results, a smaller move than its 3.28% median absolute reaction across the past eight result announcements.
Price around the results
Growth remained high, but quarterly momentum softened
Standalone revenue rose 51.84% year on year, while operating profit grew 40.45%, showing that profit conversion lagged the top line. Sequentially, revenue declined 1.89% as expenses increased 0.99%, which reduced operating margin by 2.19 percentage points. Even after that decline, the 23.19% margin was 7.5 percentage points above the 15.69% median for 37 reported Consumer Discretionary peers.
Other income and tax supported reported profit
Other income increased 143.39% year on year and 103.33% sequentially, contributing 29.67% of pre-tax profit. That made net profit growth of 83.23% year on year materially faster than operating profit growth of 40.45%. The tax rate fell by 5.45 percentage points year on year and 2.65 percentage points sequentially, while interest expense rose 57.65% year on year.
Operating margin has declined for two consecutive quarters
Operating margin fell from 26.46% in Q3FY26 to 25.38% in Q4FY26 and 23.19% in Q1FY27. This is the second straight quarter of sequential margin decline and leaves the metric below the 28.2% recorded in Q4FY25. Management said the company added 17 new products during the phase and won Rs 2.5 billion of new differential-gear programmes for non-electric passenger vehicles, commercial vehicles and off-highway vehicles.
Initial market reaction was mild versus the stock's history
The stock opened with a 1.22% gap down and was down 0.25% on the initial reaction, before showing a 0.16% move at the next reference point. Across the past eight result reactions, the stock rose six times and fell twice, with a median absolute move of 3.28%, so this initial response was relatively subdued. Management also said it aspires to replicate its 10x growth over the next decade.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,166 cr | ₹1,188 cr | -1.89% | +51.84% |
| Other income | ₹82 cr | ₹40 cr | +103.33% | +143.39% |
| Expenses | ₹895 cr | ₹887 cr | +0.99% | +55.66% |
| Operating profit | ₹270 cr | ₹301 cr | -10.34% | +40.45% |
| Operating margin (%) | 23.19% | 25.38% | — | — |
| Interest | ₹7 cr | ₹6 cr | +18.11% | +57.65% |
| Depreciation | ₹69 cr | ₹67 cr | +3.31% | +15.40% |
| Profit before tax | ₹276 cr | ₹269 cr | +2.63% | +70.72% |
| Tax | ₹56 cr | ₹61 cr | -9.31% | +34.37% |
| Net profit | ₹220 cr | ₹207 cr | +6.16% | +83.23% |
| EPS (₹) | ₹3.54 | ₹3.33 | +6.31% | +83.42% |
Operating margin of 23.19% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.25% | +0.18% |
| Next session | +0.16% | — |
Volume on the results session was 3.20× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company aspires to replicate its 10x growth over the next decade.
New orders
- The company won ₹2.5 billion of new differential-gear programs for non-electric vehicles.
New products
- The company added 17 new products during this phase.
What to watch
- Whether operating margin moves back from 23.19% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue, following +0.99% sequential expense growth against -1.89% revenue growth.
- Whether other income remains a material contributor after accounting for 29.67% of pre-tax profit.