Sona BLW Precision Forgings Allots 1,70,747 Equity Shares to MD Under Performance Share Plan 2025

Sona BLW Precision Forgings has allotted 1,70,747 equity shares to its Managing Director and Group CEO, Mr. Vivek Vikram Singh, under the Sona Performance Share Plan 2025 (PSP 2025). The allotment was approved by the company's Nomination and Remuneration Committee (NRC/Compensation Committee) of the Board of Directors on 5th May, 2026. The PSP 2025 itself had received shareholder approval on 19th December, 2025.

Allotment Details

The allotted shares carry a face value of ₹10/- each, fully paid-up, and rank pari passu with the company's existing equity shares in every respect, including dividend entitlement. In accordance with the terms of PSP 2025, the shares allotted are subject to a lock-in period of one year from the date of allotment. The key details of the allotment are summarised below:

Parameter: Details Allotment Date: 5th May, 2026 Number of Shares Allotted: 1,70,747 equity shares Face Value per Share: ₹10/- fully paid-up Allottee: Mr. Vivek Vikram Singh, Managing Director & Group CEO Plan: Sona Performance Share Plan 2025 (PSP 2025) Plan Approval Date: 19th December, 2025 Lock-in Period: One year from date of allotment Pari Passu Status: Ranks equally with existing equity shares

Impact on Paid-Up Share Capital

Consequent to this allotment, the issued and paid-up equity share capital of Sona BLW Precision Forgings has increased. The table below captures the change in the company's share capital structure:

Metric: Pre-Allotment Post-Allotment Paid-Up Share Capital (₹): ₹6,21,85,75,900 ₹6,22,02,83,370 Number of Equity Shares: 62,18,57,590 62,20,28,337 Face Value per Share: ₹10/- ₹10/-

The paid-up share capital now stands at ₹6,22,02,83,370, comprising 62,20,28,337 equity shares of ₹10/- face value each, fully paid-up. The disclosure was made to stock exchanges in compliance with Regulation 30 of the applicable listing regulations.

Three leading brokerages — Jefferies, Nomura, and Elara Capital — have all assigned Buy ratings to Sona BLW Precision Forgings , with target prices of ₹700, ₹720, and ₹2,749 respectively. The triple endorsement reflects broad-based confidence in the company's earnings trajectory, diversification into new segments, and strengthening demand across both domestic and global markets.

Jefferies: Strong Earnings Growth and Segment Diversification Drive Optimism

Jefferies has maintained its Buy rating on Sona BLW Precision Forgings with a target price of ₹700, underpinned by robust earnings performance. The company delivered EBITDA growth of 44% YoY and PAT growth of 27% YoY, signalling strong operational momentum. The brokerage highlighted multiple growth drivers that support the company's near-to-medium-term outlook.

Key factors cited by Jefferies include:

Auto segment recovery: A rebound in the automotive segment is contributing positively to overall revenue performance.

Railways ramp-up: The company is scaling up its presence in the railways segment, adding a new revenue stream.

Sensors expansion: Sona BLW's expansion into the sensors business broadens its product portfolio.

New European OEM orders: Fresh order wins from European original equipment manufacturers strengthen the international order book.

Jefferies also made modest EPS upgrades for FY27–28, reflecting an improved earnings outlook based on these developments.

Nomura: Q4 Revenue Beat and EV Demand Inflection Underpin Bullish View

Nomura has assigned a Buy rating with a target price of ₹720, citing a Q4 revenue beat as a key highlight. The brokerage noted that EV demand appears to be at an inflection point both in India and globally, which positions Sona BLW favourably given its exposure to the electric vehicle drivetrain segment. While Nomura acknowledged near-term margin pressures, it characterised them as temporary. The brokerage raised its revenue estimates for FY27–28 despite applying slight margin cuts, reflecting confidence in the company's top-line growth trajectory. Nomura also pointed to an attractive valuation of approximately 39x FY28 EPS and a long-term EPS CAGR potential of over 20% as additional reasons supporting its positive stance.

Elara Capital: Railways Integration and EV Traction Drive Upgrade

Elara Capital has upgraded Sona BLW Precision Forgings to Buy with a target price of ₹2,749, citing strong Q4 growth with revenue rising 47% YoY. The brokerage highlighted railways integration and EV traction as key drivers of this performance. Elara Capital also noted a BEV recovery of 22% and pointed to a robust order book of ₹237bn, approximately 70% of which is linked to electric vehicles. Global supply chain tailwinds and EPS upgrades further support the brokerage's positive growth visibility outlook.

The following table summarises the key parameters from all three brokerage calls:

Parameter: Jefferies Nomura Elara Capital Rating: Buy Buy Buy (upgrade) Target Price: ₹700 ₹720 ₹2,749 EBITDA Growth (YoY): +44% — — PAT Growth (YoY): +27% — — Revenue Growth (YoY): — Q4 beat +47% BEV Recovery: — — +22% Order Book: — — ₹237bn (~70% EV-linked) Estimate Revisions: Modest EPS upgrades for FY27–28 Revenue estimates raised for FY27–28; slight margin cuts EPS upgrades Valuation: — ~39x FY28 EPS — Long-term EPS CAGR: — 20%+ —

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