Menon Bearings Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Menon Bearings Ltd-$ filed with BSE on 22 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Menon Bearings reported its highest-ever quarterly sales, EBITDA, PBT and PAT for Q1 FY27, with standalone sales up 40.41% year-on-year to Rs 67.06 crore and consolidated sales up 36.57% to Rs 91.79 crore. Management attributed the growth to healthy demand across segments, operational efficiencies and cost optimization, and cited a recent trip to Canada and the US as a source of future business. The company also discussed segment-wise EBITDA margins, capacity utilization levels, and plans for capacity expansion in bi-metal and Alkop divisions.
Numbers mentioned
Standalone sales: INR67.06 crores (Q1 FY27)
p. 3
“during the quarter sales increased to INR67.06 crores from INR47.76 crores as compared to the corresponding quarter of the last year that is year-on-year increase of 40.41%”
Arun Aradhye, page 3 of the filed PDF · View the filing
Standalone PBT: INR14.85 crores (Q1 FY27)
p. 3
“Our continued emphasis on operational excellence resulted in profit before tax of INR14.85 crores as compared to INR9.03 crores last year, reflecting a growth of 64.32%”
Arun Aradhye, page 3 of the filed PDF · View the filing
Standalone PAT: INR11.23 crores (Q1 FY27)
p. 3
“Consequently, profit after tax has also gone up by 63.53% which is now INR11.23 crores”
Arun Aradhye, page 3 of the filed PDF · View the filing
Consolidated sales: INR91.79 crores (Q1 FY27)
p. 4
“on a consolidated basis, the sales increased to INR91.79 crores as compared to INR67.21 crores last year, same quarter, registering a growth of 36.57%”
Arun Aradhye, page 4 of the filed PDF · View the filing
Consolidated PBT: INR18.51 crores (Q1 FY27)
p. 4
“Profit before tax reached to INR18.51 crores as compared to INR11.06 crores last year, corresponding quarter, representing a growth of 67.36%”
Arun Aradhye, page 4 of the filed PDF · View the filing
Earnings per share: INR2.52 (Q1 FY27)
p. 4
“Our earnings per share also improved significantly to INR2.52 compared to INR1.50”
Arun Aradhye, page 4 of the filed PDF · View the filing
Brakes segment EBITDA margin: 25% (Q1 FY27)
p. 6
“right from 12% EBITDA earlier, now we have reached to 25% EBITDA in brakes also”
Arun Aradhye, page 6 of the filed PDF · View the filing
Bi-metal EBITDA margin: 21% plus (Q1 FY27)
p. 21
“for the bi-metal is concerned the margin, so, EBITDA margins are around 21% plus”
Arun Aradhye, page 21 of the filed PDF · View the filing
Alkop EBITDA margin: almost 21% (Q1 FY27)
p. 21
“Then Alkop, it is almost 21%”
Arun Aradhye, page 21 of the filed PDF · View the filing
Overall EBITDA margin: 21.5% to 22% (Q1 FY27)
p. 21
“overall, it is almost 21.5% to 22% as the margins”
Arun Aradhye, page 21 of the filed PDF · View the filing
Bi-metal capacity utilization: 85% (Q1 FY27)
p. 11
“So my question was mainlyon the bi-metal business, right?So currently our utilization is at 85%”
Rucheeta Kadge, page 11 of the filed PDF · View the filing
Bearing segment utilization: around 80% (Q1 FY27)
p. 24
“Roughly, I will tell you bearing around 80%”
Aditya Menon, page 24 of the filed PDF · View the filing
Aluminium segment utilization: 65 to 70% (Q1 FY27)
p. 24
“aluminium around 65 to 70%, and brake also”
Aditya Menon, page 24 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Additional business from Canada/USA and part development — INR65 crores to INR75 crores · current and next financial year
stated conditionally by Arun Aradhye
p. 4
“The total potential of additional business for the current and next financial year is expected to be around INR65 crores to INR75 crores, subject to good monsoon and geopolitical situation doesn't worsen further.”
Arun Aradhye, page 4 of the filed PDF · View the filing
Menon Brakes railway business — INR5 crores to INR6 crores initially, up to INR25 crores to INR30 crores · within next two years
stated conditionally by Arun Aradhye
p. 5
“we will have a business of around INR5 crores to INR6 crores to start with and eventually it will go up to INR25 crores to INR30 crores within next two years”
Arun Aradhye, page 5 of the filed PDF · View the filing
Alkop revenue — INR100 crores this year, INR125 crores next year · FY27 and FY28
stated as an aspiration by Aditya Menon
p. 8
“For this year, we are targeting Alkop for INR100 crores, next year around INR125 crores”
Aditya Menon, page 8 of the filed PDF · View the filing
Africa revenue potential (bearings, bushes, washers) — around INR9 crores
stated as an aspiration by Arun Aradhye
p. 7
“the possible revenue from Africa so far as bearing, bushes and washers are concerned is around INR9 crores”
Arun Aradhye, page 7 of the filed PDF · View the filing
Africa brake linings revenue — INR6 crores to INR7 crores · for the year
stated as an aspiration by Arun Aradhye
p. 7
“we are working on supplies to Africa so far as brake linings are concerned, and that is expected to be around INR6 crores to INR7 crores for the year”
Arun Aradhye, page 7 of the filed PDF · View the filing
Bi-metal capacity expansion revenue — more than INR25 crores · this financial year
stated firmly by Arun Aradhye
p. 11
“we are investing about INR9 crores to INR10 crores of rupees for this year, this financial year for increasing the capacity and which is expected to increase the capacity by almost 25% to 30%, which may yield the total revenue of more than INR25 crores”
Arun Aradhye, page 11 of the filed PDF · View the filing
Peak revenue potential - bi-metal division — above INR400 crores
stated as an aspiration by Arun Aradhye
p. 12
“Peak revenue from this, it can be aboveINR400 crores.”
Arun Aradhye, page 12 of the filed PDF · View the filing
Export share of total revenue — 37% · next year
stated as an aspiration by Arun Aradhye
p. 13
“we expect that by next year, the export may go up to 37% after total revenue”
Arun Aradhye, page 13 of the filed PDF · View the filing
Domestic RFQ list conversion into additional business — more than INR60 crores of rupees · within this year and next year
stated conditionally by Arun Aradhye
p. 15
“we can definitely add within this year and next year to the extent of more than INR60 crores of rupees with the additional business we will be getting”
Arun Aradhye, page 15 of the filed PDF · View the filing
FY27 revenue guidance — INR360 crore · FY27
stated firmly by Aditya Menon
p. 16
“we have told INR360 crore is a conservative number”
Aditya Menon, page 16 of the filed PDF · View the filing
Long-term revenue target — INR500 crore · 2030, being pursued sooner
stated as an aspiration by Aditya Menon
p. 23
“We were supposed to reach INR500 crore in 2030, but we are trying to do it as soon as possible.”
Aditya Menon, page 23 of the filed PDF · View the filing
Year-on-year growth target — 20% plus · year on year
stated as an aspiration by Arun Aradhye
p. 23
“there is always a target, we have set ourselves on a conservative basis of 20% plus year on year”
Arun Aradhye, page 23 of the filed PDF · View the filing
EV share of Alkop business — 8% · next two years
stated as an aspiration by Aditya Menon
p. 10
“So we are also targeting, so 8% is for the near future, for the next two years.”
Aditya Menon, page 10 of the filed PDF · View the filing
Consolidated EBITDA margin sustainability — 20% to 21% · over a period of time
stated as an aspiration by Arun Aradhye
p. 21
“on a consolidated basis, if you see, we will sustainaround 20% to 21% of margins over a period of time”
Arun Aradhye, page 21 of the filed PDF · View the filing
Brakes EBITDA margin recovery — 20%
stated as an aspiration by Arun Aradhye
p. 22
“it will improve further. We will try and see that it goes to 20%, which is our standard level”
Arun Aradhye, page 22 of the filed PDF · View the filing
CapEx funding source — internal accruals, no fresh loan
stated firmly by Arun Aradhye
p. 19
“so far as whatever we are considering so far as bi-metal and Alkop is concerned, it will be through internal accruals only, no fresh loan will be taken”
Arun Aradhye, page 19 of the filed PDF · View the filing
Alkop CapEx — INR4 crores · this year
stated firmly by Arun Aradhye
p. 13
“we are having the CapEx of around INR4 crores of for this year in Alkop alone”
Arun Aradhye, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the dynamometer is under construction, expected commissioning by end of August, with railway approval and testing to follow, targeting initial revenue of INR5-6 crore rising to INR25-30 crore within two years.
Answered by Arun Aradhye
Asked by Arnav Sakhuja: What revenue can be expected from the brake segment in FY27 given the dynamometer arrival?
p. 5
“we will have a business of around INR5 crores to INR6 crores to start with and eventually it will go up to INR25 crores to INR30 crores within next two years”
Arun Aradhye, page 5 of the filed PDF · View the filing
Management said new business realization in Alkop takes 9-12 months, described extensive customer engagement in the US and Canada, and said this would materialize in 2027-28.
Answered by Aditya Menon
Asked by Bhargav Buddhadev: What is the visibility on the INR50-60 crore additional revenue opportunity in Alkop from the US/Canada trip?
p. 9
“So this group, what we are talking about this US trip and Europe trip, this will be realized in 2027-'28.”
Aditya Menon, page 9 of the filed PDF · View the filing
Management said current EV share is around 4-5%, driven by a few customers like TACO Prestolite and Tata Motors, with more parts under development.
Answered by Aditya Menon
Asked by Bhargav Buddhadev: What is the current EV share in Alkop and outlook for the next three years?
p. 10
“Currently, we are at around 4% to 5% EV.”
Aditya Menon, page 10 of the filed PDF · View the filing
Management said they are investing INR9-10 crore this year to expand capacity by 25-30%, and that third shift capacity remains available.
Answered by Arun Aradhye
Asked by Rucheeta Kadge: With current bi-metal capacity utilization at 85%, what is the plan for further growth?
p. 11
“we are investing about INR9 crores to INR10 crores of rupees for this year, this financial year for increasing the capacity and which is expected to increase the capacity by almost 25% to 30%”
Arun Aradhye, page 11 of the filed PDF · View the filing
Management said it is a mix of both, with new geographies like Canada, Europe and South America being pursued alongside existing customer growth.
Answered by Arun Aradhye
Asked by Disha Chamriya: What is driving the higher export target for FY27, and is it existing customers or new geographies?
p. 13
“Is it because of additional business with the existing customers as well as acquisition of new customers? It's a mix of both.”
Arun Aradhye, page 13 of the filed PDF · View the filing
Management declined to revise the number upward explicitly but indicated the guidance was conservative and that Q4 would show a clearer picture.
Answered by Aditya Menon
Asked by Ankit Mittal: Given INR92 crore revenue in Q1, is the INR360 crore FY27 guidance conservative?
p. 16
“we have told INR360 crore is a conservative number. But I don't want to comment more on the final number.”
Aditya Menon, page 16 of the filed PDF · View the filing
Management said margins have improved despite a 20-25% rise in raw material prices and expect further improvement.
Answered by Arun Aradhye
Asked by Ankit Mittal: Is the current 21-22% EBITDA margin sustainable given raw material cost increases?
p. 17
“even after increasing the raw material prices by about 20%, 25%, still, not only we have sustained, but our margins have increased further.”
Arun Aradhye, page 17 of the filed PDF · View the filing
Management attributed the higher brakes margin this quarter to product mix and said bi-metal typically has the highest margins, followed by aluminium and then brakes.
Answered by Aditya Menon
Asked by Nishant Sharma: Can you explain the margins in each segment, especially the discrepancy between the 12% brakes target in the presentation and the 25% achieved this quarter?
p. 21
“Menon Bearings, the bi-metal segment will have higher EBITDA margins, then aluminium and then brakes.”
Aditya Menon, page 21 of the filed PDF · View the filing
Management confirmed the CapEx for bi-metal and Alkop will be funded through internal accruals with no fresh loans.
Answered by Arun Aradhye
Asked by Neha Garg: Is the CapEx being funded through internal accruals or debt?
p. 19
“it will be through internal accruals only, no fresh loan will be taken”
Arun Aradhye, page 19 of the filed PDF · View the filing
Management said bearing utilization was around 80%, aluminium and brakes around 65-70%, with the third shift not run at full capacity.
Answered by Aditya Menon
Asked by Rucheeta Kadge: What was the utilization in each segment this quarter?
p. 24
“bearing around 80%. But we don't calculate extra land and the land using space we have. We just calculated machinery.”
Aditya Menon, page 24 of the filed PDF · View the filing
Risks flagged
Monsoon and drought conditions affecting tractor segment demand
p. 15
“considering the monsoon position that may -- in tractor segment affect today to some extent, not larger, because in some parts there is a drought-like situation”
Arun Aradhye, page 15 of the filed PDF · View the filing
Geopolitical situation and war affecting merchant export orders and raw material/logistics costs
p. 7
“last three months, those merchant export orders were stuck because of backlog because of the Straight of Hormuz and the war”
Aditya Menon, page 7 of the filed PDF · View the filing
Sharp rise in consumable and raw material costs not passed on by customers
p. 14
“Those carbide tools price are increased by 300%. So these costs are not given to us by the customer.”
Aditya Menon, page 14 of the filed PDF · View the filing
Volatility in aluminium raw material prices affecting realization
p. 12
“So it has become somewhat volatile.”
Arun Aradhye, page 12 of the filed PDF · View the filing
Steep competition from China in Africa and Dubai markets compressing brake lining margins
p. 22
“since there is a steep competition from China, particularly in Dubai and African countries for brake linings, we have to keep the minimum margins so far as exports are concerned to these countries”
Arun Aradhye, page 22 of the filed PDF · View the filing
Difficulty and long timelines in securing defence sector business due to government processes
p. 19
“it's more complex than getting an OEM or a more…”
Aditya Menon, page 19 of the filed PDF · View the filing
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