Sona BLW shares surge 85% in 2026, hit record high for second straight session: What’s driving the rally? Buy or hold?
Shares of Sona BLW Precision Forgings have been on a bull run after the company reported strong September-quarter earnings. The stock has surged over 85% so far in 2026. Sona BLW Precision Forgings shares have gained 23.48% over the past three months and 46.60% over the past six months.
Sona BLW Precision Forgings share price touched a fresh record high of ₹882 on Wednesday, 28 October, marking its second consecutive session at record levels. On Tuesday, 27 October, the shares hit the upper circuit at ₹862.25, extending the rally that followed the company's Q2 FY27 results announced on Monday, 26 October.
Sona BLW Precision Forgings share price today opened at ₹853.50 apiece on the BSE, the stock touched an intraday high of ₹882, and an intraday low of ₹851 per share.
Sona BLW, an auto component manufacturer, reported a 29% year-on-year increase in consolidated net profit to ₹223.4 crore for the July-September quarter, compared with ₹172.7 crore in the corresponding period last year, according to an exchange filing.
Revenue from operations rose 34.9% year-on-year to ₹1,535.84 crore from ₹1,138.29 crore a year earlier, reflecting robust business growth.
“Q2 FY27 was almost a perfect quarter for us, across all business metrics like financial performance, technology and new product development, new orders, cash flow generation and the conferring of the Deming Award after a nine-year quality journey,” said Vivek Vikram Singh, managing director and group CEO of Sona BLW.
The company also reported strong growth in its battery electric vehicle (BEV) business. Revenue from the segment surged 129%, taking its contribution to the auto business to an all-time high of 51% during the quarter.
Sona BLW's net order book stood at ₹25,100 crore, including ₹3,600 crore in new orders secured during the September quarter, highlighting continued demand for its products.
The company also expanded its product portfolio, commercialising three new products during the quarter — its highest-ever number in a single quarter. These included a helical limited-slip differential for electric vehicles, air springs for railway passenger coaches and rear radar sensors for two-wheelers.
“ We also commercialised three new products, our highest-ever in a quarter, which include a helical limited slip differential for EVs, air springs for railway passenger coaches and rear radar sensors for two-wheelers,” Singh said.
Despite strong revenue and profit growth, operating margins moderated. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23% year-on-year to ₹356.2 crore, while the EBITDA margin declined to 23% from 25.3% in the year-ago quarter, according to the company's investor presentation.
Elara Securities reiterated its ‘Buy’ rating on Sona BLW Precision Forgings and raised its target price to ₹1,005 from its earlier level, citing the company’s ability to develop new businesses through in-house research and development (R&D) and strategic partnerships.
The brokerage noted that more than 35% of the company’s revenue now comes from products that were not part of its portfolio seven years ago, highlighting its ability to develop and scale new businesses. It added that the partnership with Denso and opportunities in physical AI could further support growth.
Elara Securities said the Denso joint venture’s financial contribution is expected to become visible from FY30, but the partnership could open up a significant total addressable market (TAM). Assuming a ₹72,000-crore market opportunity by FY35, including global demand, and a 10% market share, the venture could potentially contribute ₹200 per share when discounted to FY29. However, the brokerage has not factored this potential contribution into its valuation.
Following better-than-expected Q2 results, Elara raised its FY27–FY29 earnings-per-share (EPS) estimates by 3–4%. It maintained its target valuation multiple at 50 times the estimated December 2028 EPS.
Nuvama Institutional Equities retained its ‘Hold’ rating on Sona BLW but raised its target price to ₹830 from ₹700, reflecting the company’s growth prospects and elevated valuation. However, the stock has breached the brokerage's target levels.
Nuvama estimates compound annual growth rates (CAGRs) of 22% for revenue and 20% for EBITDA between FY26 and FY29, driven by growth in the motors and differential assembly segments. The brokerage identified robotics, physical AI and joint ventures with Denso as potential medium-term growth catalysts.
However, citing stretched valuations, Nuvama retained its ‘Hold’ rating and raised its target price to ₹830, based on 50x and 25x multiples of the estimated EPS for the September 2028 core and railway businesses, respectively. It had previously based its estimates on earnings in March 2028. The brokerage noted that the stock trades at 45 times FY28 estimated earnings and 41 times FY29 estimated earnings.
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HomeMarketsStock MarketsSona BLW shares surge 85% in 2026, hit record high for second straight session: What’s driving the rally? Buy or hold?
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