Market Will Surely Hear Something On M&A From Sona Comstar: CFO Rohit Nanda

Sona Comstar has signalled that mergers and acquisitions will continue to play a key role in its next phase of growth, with Chief Financial Officer Rohit Nanda indicating that the market can expect developments on the inorganic expansion front, while clarifying that no transaction is currently at an advanced stage.

M&A Announcement Expected, But Nothing at an Advanced Stage

“You will definitely hear something on the M&A side,” Nanda said during the company’s post-Q1 FY27 interaction with the media. However, he added that there is currently “nothing at an advanced stage” that the company can disclose.

Organic Growth, JVs and Acquisitions — A Three-Pronged Strategy

Nanda said Sona Comstar’s future growth strategy will not rely solely on acquisitions, but will be driven through a combination of organic expansion, strategic joint ventures and mergers and acquisitions.

“We will work organically, we will also do JVs and we will also do M&A. M&A will be an important part of this growth trajectory,” he said.

'Getting Into a Partnership Is Almost Like Getting Married'

Explaining the company’s approach towards partnerships, Nanda likened strategic alliances to long-term relationships.

“Getting into partnership is almost like getting into a marriage, so you need to choose carefully who you are marrying,” he said, referring to the company’s recently announced partnership with Denso.

Denso Transaction to Bolster a ₹2,300 Crore War Chest

The comments come as Sona Comstar strengthens its balance sheet following Denso’s decision to acquire a 49% stake in the company’s existing two- and three-wheeler traction motor and controller business.

Nanda said the company is currently sitting on around ₹1,400-1,500 crore in cash, while the Denso transaction is expected to bring in another ₹800-odd crore, giving Sona Comstar significant financial flexibility as it evaluates future growth opportunities.

“We have to deploy this capital efficiently,” he said, adding that capital allocation remains one of the management team’s key responsibilities.

Sona Comstar 2.0: Robotics, Railways and Physical AI in Focus

The company recently unveiled its ‘Sona Comstar 2.0’ strategy, under which it plans to expand beyond its traditional automotive driveline business into new growth areas such as robotics, railways and Physical AI, while continuing to deepen its presence in electric mobility.

Nanda said acquisitions will complement the company’s organic growth initiatives and partnerships as it builds capabilities across these emerging businesses.

While stopping short of indicating the timing or nature of any future transaction, the company’s latest comments suggest inorganic growth will remain an important strategic lever as Sona Comstar executes its long-term diversification plans.