SONACOMS's Q2 FY27 numbers came in strong, with revenue of Rs. 1,535.84 Cr (+34.92% YoY) and PAT growth of +30.81% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,535.84 Cr (+34.92% YoY) |
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| PAT (Q2) | Rs. 222.99 Cr (+30.81% YoY) |
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| EBITDA margin | 23.20% (-219 bps YoY) |
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| EPS (Q2) | Rs. 3.58 (+28.78% YoY) |
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| Market cap | Rs. 47,533.68 Cr |
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| CMP | Rs. 761.55 |
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Quarter Snapshot
Revenue grew 34.92% YoY and 18.03% QoQ to Rs.1,535.84 Cr with PAT up 30.81%, while EBITDA margin held at the floor of the guided 23-25% band as input inflation (materials at 53.29% of revenue) offset operating leverage. Cash quality was high (H1 CFO/PAT 1.48x, FCF Rs.445.02 Cr) and net cash improved Rs.248.93 Cr, tracking the net-cash-accretive FY27 commitment. The DENSO JV (49% stake at Rs.17,500 mn enterprise value) and pending margin recovery from pass-through landing are the key forward catalysts.
Key Investment Insights
Key Positives
- Revenue grew 34.92% YoY and 18.03% QoQ to Rs.1,535.84 Cr, well above the ~3% QoQ run-rate through FY26
- PAT grew 30.81% YoY to Rs.222.99 Cr; EPS grew 28.78% to Rs.3.58
- EBITDA margin of 23.20% (filing base) held within the guided 23-25% band despite input inflation
- H1 CFO/PAT of 1.48x and CFO/EBITDA of 0.90x; H1 free cash flow of Rs.445.02 Cr vs Rs.32.16 Cr a year ago
- Net cash improved Rs.248.93 Cr over H1 to Rs.854.51 Cr despite Rs.111.97 Cr dividend paid, tracking the net-cash-accretive FY27 commitment
- Subsidiaries swung from a Rs.39.64 Cr drag in Q1 to a Rs.26.03 Cr contribution in Q2
- Employee costs fell to 8.50% of revenue from 9.05% YoY, showing operating leverage offsetting commodity squeeze
- DENSO JV ratified by 94.49% of votes cast; no exceptional items booked this quarter
Risk Factors
- EBITDA margin flat QoQ at the 23% band floor (23.26% → 23.20% filing base); the guided pass-through recovery 'progressively more visible from quarter 2 onwards' did not appear
- Materials cost rose to 53.29% of revenue from 49.06% a year ago on input inflation with pass-through lag
- Finance costs more than doubled YoY to Rs.12.3 Cr from Rs.5.2 Cr following railway/NOVELIC acquisition funding
- Inventories built Rs.170.06 Cr over H1 to Rs.785.65 Cr, absorbing working capital
- GST ITC reversal demand of Rs.2.15 Cr plus Rs.21.05 Lakh penalty disclosed; appeal under evaluation