Key Financial Figures - Q1 FY27 Performance

Standalone Performance (Bi-metal Menon Bearings):

  • Sales: ₹67.06 crores (up 40.41% YoY from ₹47.76 crores)
  • EBITDA: ~60% growth YoY
  • Profit Before Tax: ₹14.85 crores (up 64.32% YoY from ₹9.03 crores)
  • Profit After Tax: ₹11.23 crores (up 63.53% YoY)

Consolidated Performance:

  • Sales: ₹91.79 crores (up 36.57% YoY from ₹67.21 crores)
  • Total Income: 37.05% growth YoY
  • EBITDA: 57% growth YoY
  • Profit Before Tax: ₹18.51 crores (up 67.36% YoY from ₹11.06 crores)
  • Profit After Tax: 67.35% growth YoY
  • Earnings Per Share: ₹2.52 (compared to ₹1.50 YoY)

Operational Highlights and Business Updates

Capacity Utilization and Expansion:

  • Bi-metal division utilization at ~80%
  • Aluminium division utilization at 65-70%
  • Brakes division utilization at 65-70%
  • Investing ₹9-10 crores in capacity expansion for bi-metal division to increase capacity by 25-30%
  • Additional ₹4 crores CapEx planned for Alkop division
  • Existing infrastructure can support growth up to ₹500 crores revenue

Segment Performance:

  • Bi-metal EBITDA margins: ~21%
  • Alkop EBITDA margins: ~21%
  • Brakes EBITDA margins: 25% (significantly higher than industry standard of 12-13% due to favorable product mix)

New Business Development:

  • Recent US/Canada visit expected to yield ₹65-75 crores additional business
  • 51 new parts under development with estimated potential of ₹75 crores
  • Targeting 75-80% conversion rate on current RFQs
  • African market expansion through distributor network targeting ₹9 crores in bearings and ₹6-7 crores in brake linings
  • Existing Dubai distributor business: ₹7-8 crores annually

Railway Brake Segment:

  • Dynamometer expected by August 2026
  • Railway approval process expected to take approximately one year after installation
  • Initial business expectation: ₹5-6 crores in first year
  • Potential to grow to ₹25-30 crores within two years
  • Developing dies for various railway applications including Vande Bharat, metros, cargo and passenger bogies

EV Segment:

  • Current EV share: 4-5%
  • Targeting 8-10% EV share by FY27 end
  • Working with TACO Prestolite, Tata Motors on EV components
  • Receiving RFQs for larger, more technical parts (1,600-ton machine, 8-kg parts)

Guidance and Outlook

FY27 Targets:

  • Conservative revenue guidance: ₹360 crores
  • Alkop division target: ₹100 crores revenue
  • Export target: 37% of total revenue (from historical 24-30%)
  • Year-on-year growth target: 20%+

Long-term Vision:

  • Aiming to reach ₹500 crores revenue by 2030 (potentially earlier)
  • Alkop target for FY28: ₹125 crores revenue
  • Sustainable 20-21% EBITDA margins

Geographic Expansion

  • Exporting to 42 countries with majority to United States
  • Recent focus on Canada market development
  • September 2026 Europe visit planned for new customer acquisition
  • Direct Africa expansion alongside existing Dubai distributor route

Management Commentary

  • Strong demand across all business segments
  • Improved operational efficiencies and cost optimization
  • Focus on technological advancement and product innovation
  • Confidence in sustaining growth momentum despite global uncertainties
  • Raw material price volatility managed effectively (aluminum prices ₹340-370 range)
  • War-related disruptions affecting supply chains but managed proactively