Sona Comstar Q1 FY26 concall decoded: When EV dreams hit speed bumps

Remember when EV suppliers thought the only thing slowing them down was charging speed? Sona Comstar just found four other ways: delayed revenue recognition, a major customer slowdown, a China rare earth magnet ban, and US tariff jitters. Q1 became their worst quarter since IPO — revenue fell 5%, EBITDA plunged 19% — yet they still landed their biggest EV order in 2.5 years.

Why it matters? Because in the EV supply chain, a “temporary” problem can feel like a decade in dog years, but orderbooks tell a different story — ₹26,200 crore worth, 75% EV-heavy.

Stick around—things get spicier two scrolls down.


AT A GLANCE

• Revenue down 5% – CFO blames four “temporary” plot twists.
• EBITDA margin 23.8% – Operating leverage went on vacation.
• ₹1,500 cr mega EV order – From a legacy North American OEM.
• Railway biz now 8% revenue – But drags margin math.
• BEV share dips to 28% – Rare earth crisis zapped traction motors.


MANAGEMENT’S KEY COMMENTARY

Vivek Vikram Singh (MD & Group CEO): “Worst quarter since IPO due to four adverse, temporary factors.”
Translation: Every season has filler episodes — this one had four in a row.

On rare earth magnet

ban: “We’ve switched to light rare earth magnets; big motors still tricky.”
Translation: Found a detour, but SUVs may still stall.

On China JV: “60% stake, brownfield entry, big EV market, margins will be lower than India.”
Translation: Sometimes you enter the dragon’s den for the size, not the snacks.

On orderbook: “₹26,200 cr net, highest ever, 75% EV.”
Translation: The future still looks electric — literally.

On Railways: “Leader in brake systems, adding couplers, doors, HVAC; metro & export push.”
Translation: From cars to coaches — diversification on rails.

On tariffs: “3-4% possible revenue impact over 12–18 months, not immediate.”
Translation: The customs officer hasn’t shown up yet.


NUMBERS DECODED

Revenue – The HeroEBITDA – The SidekickMargins – The Drama Queen
₹851 cr (-5% YoY)₹203 cr (-19% YoY)23.8% EBITDA, 15.5% PAT

Revenue: BEV sales -25% due to magnet ban,

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