Strong EV execution keeps growth visibility high

Nomura reiterates Buy on Sona BLW Precision Forgings and raises its target price to INR949 from INR848, implying 21.4% upside. 2QFY27 revenue of INR15.5bn grew 35% y-y, about 3% above Nomura and 11% above Bloomberg consensus, while EBITDA margin of 23% drove EBITDA of INR3.6bn (+23% y-y), roughly 4%/10% ahead of Nomura/consensus; adjusted PAT rose 28% y-y to INR2.2bn. EV share in automotive revenue rose to 51% from 44% in 1Q, with BEV revenue up 129% y-y. The company added INR36bn of orders in the quarter, taking the order book to INR251bn, including INR12.5bn of 2W traction motors, INR3.8bn of 2W motor controllers, INR7bn of ePV DA and INR1bn of rear radar sensors for 2W, plus INR6.6bn in the non-EV portfolio. Robotics and physical AI orders account for about 4% of the order book. Management maintained its 23-25% medium-term EBITDA margin target. Nomura raises revenue estimates by 3-5% and FY27-29F earnings by 3-7%, and values the stock at 50x FY29F EPS discounted to Dec-27F, keeping