30-Oct-2026 10:45:01
MENON BEARINGS Q2 FY27: ALKOP REVENUE TARGET OF ₹95 CR; ₹34.5 CR CAPEX PLANNED & EXPORT CONTRIBUTION TARGET OF 37%
• Alkop Growth Target: Management expects Alkop annual revenue to reach ₹95 Cr by FY27 from approximately ₹40 Cr, supported by new products and customer orders • New Product Opportunities: Developed and tested 38 components for a major customer, with revenue potential of ₹50–60 Cr annually within two years • Capex Plans: Additional ₹34.5 Cr investment planned over the next two years, including ₹25 Cr for Bi-Metal, ₹7 Cr for Alkop and ₹2.5 Cr for Braking Systems • Export Guidance: Management targets export contribution to increase from approximately 34% to 37% of total revenue by FY27 • US Export Expansion: Expects significant growth in US exports across Menon Bearings and Alkop, with estimated annual revenue opportunity of around ₹30 Cr • EV Business Expansion: Entered EV component supply for Porsche through Eaton and supplies Tesla through Concentric; EV segment targeted to contribute 8–10% of Alkop revenue by FY27 • New Business Potential: Components developed for multiple customers have received approximately 50% approval, with potential annual revenue of ₹55 Cr as production scales up • Capacity Expansion: Bi-Metal annual capacity increased to 600 lakh units from 580 lakh units, while Braking Systems capacity expanded 53% to 46 lakh units from 30 lakh units • Braking Business: Expects significant revenue growth following dynamometer commissioning, supporting railway approvals and new OEM orders • Automation Plans: Robotic automation initiatives scheduled between November 2026 and April 2027 to improve productivity, machine utilisation and operating efficiency • International Expansion: Plans to enter African markets through a large distributor network while increasing exports to existing overseas customers • Quarterly Results: Revenue surged 58.6% YoY to ₹100.88 Cr, EBITDA jumped 103.8% to ₹22.20 Cr and net profit increased 117.1% YoY to ₹14.73 Cr • Margin Performance: EBITDA margin expanded to 22% from 17.12% YoY, but declined from 23.8% QoQ • Long-Term Margin Target: Management targets minimum EBITDA margins of 20–22% across key businesses, supported by high-value products, automation and cost efficiencies
MENON BEARINGS LIMITED