Sona Comstar: Sona BLW shares tumble 7% as Chairman Sunjay Kapur passes away

Shares of Sona BLW Precision Forgings Ltd (Sona Comstar) declined 8 per cent in Friday's trading session after the company announced the passing of its Chairman and Non-Executive Director, Sunjay Kapur, in England, United Kingdom.

Following the development, the stock plunged 7.70 per cent to hit a low of Rs 471.55 on BSE. The stock, however, recovered and was later trading at Rs 495.95, down 2.93 per cent. With this, the scrip is down 16.02 per cent year-to-date.

In a regulatory filing to the BSE, the company stated: “Sunjay was a visionary leader and a compassionate human being whose guidance was instrumental in shaping Sona Comstar’s success. His vision, values, and unwavering commitment to excellence have left a profound legacy. On behalf of the company, we offer our deepest condolences to his family, friends, and everyone touched by his extraordinary life.”

Sona Comstar, a major supplier to the rapidly expanding Electric Vehicle (EV) sector, reassured its stakeholders—including customers, business partners, employees, and shareholders—that its business operations and long-term outlook remain unaffected.

“We are dedicated to honoring his legacy by continuing to pursue our mission and upholding the values he instilled in the company,” the statement added.

According to Sona Comstar’s website, Sunjay Kapur also served on the boards of several organizations, including Jindal Steel & Power Limited, the Indian Public Schools Society, Raghuvanshi Investment Private Limited, B R S Finance and Investment Company Private Limited, Osborne Agri Company Private Limited (UK), Udayan Finvest Private Limited, and Azarias Advance Systems Private Limited.

He was a Supervisory Board member of NOVELIC d.o.o Beograd-Zvezdara and the Managing Director at Aureus Investment Private Limited (formerly Sona Autocomp Holding Pvt Ltd).

Kapur was also known in the public eye as the former husband of Bollywood actress Karisma Kapoor.

In recent financial updates, Sona Comstar reported a revenue of Rs 864.80 crore for Q4FY25, reflecting a 2.2 per cent year-on-year decline. The drop was mainly attributed to a model transition by a key customer, affecting deliveries in the battery electric vehicle (BEV) segment.

Despite the dip, revenue from the BEV segment grew 8 per cent YoY to Rs 294.40 crore, raising its share of total revenue to 35  per cent in Q4FY25 from 32 per cent in Q4FY24. The company's Ebitda margin fell to 26.7 per cent , down 119 basis points YoY, due to an unfavorable product mix.

LKP Securities noted in a May 5 report: “Q4 revenue was hit by a model change at a key customer, though ramp-up for the new model began in March. While full normalization is still in progress, more clarity is expected by quarter-end. Additionally, weak demand in Europe affected hybrid and micro-hybrid sales, while the commercial vehicle segment also saw a revenue decline.”

Nomura, in its May 1 note, mentioned that only 3 per cent of Sona’s U.S. revenue may be impacted by potential tariffs. The company may consider setting up assembly operations in Mexico if necessary.

Looking ahead, the company remains optimistic about the EV sector, projecting a pickup in demand as EVs approach price parity with internal combustion engine (ICE) vehicles by 2030. While revenues from starter motors are expected to decline, new orders are starting to come in. The integration of its railway business is set to begin in June 2025, which, due to its lower Ebitda margins (18–19 per cent), is expected to slightly reduce overall margins.