Nature of the Disclosure

This is a regulatory filing pursuant to SEBI Listing Regulations (Regulation 30) containing the transcript of the Q2 & H1 FY27 post-earnings conference call held on October 30, 2026.

Key Financial Figures (Q2 FY27 YoY Growth - Consolidated)

  • Total Income: Growth of 58.60%
  • EBITDA: Growth of 103.8%
  • PBT (Profit Before Tax): Growth of 123%
  • PAT (Profit After Tax): Growth of 117%
  • EPS: Growth of 117%
  • Cash and Bank Balance (including mutual funds): INR 25.69 Crores

Key Financial Figures (H1 FY27 YoY Growth - Consolidated)

  • Total Income from Operations: INR 194.9 Crores (47% growth)
  • EBITDA: Growth of 77%
  • PBT: Growth of 92%
  • PAT: Growth of 89.55%

Growth Guidance and Forward-Looking Statements

Management provided explicit growth projections for the coming years:

  • FY27: Expected growth of more than 30%.
  • FY28: Expected growth of more than 30%, contingent on circumstances.
  • Business Pipeline: An estimated additional business of INR 30 crores is expected for FY27 on a consolidated basis.
  • FY28 Pipeline: Estimated additional business of INR 131 crores.
  • FY29 Pipeline: Estimated additional business of INR 157 crores, excluding a separate potential European business of INR 35 crores.

Operational and Strategic Highlights

  • Growth Drivers: Growth is attributed to strong domestic demand and rapidly growing exports to the USA. A recent Europe tour is yielding significant business potential.
  • Raw Material Price Volatility: The company noted substantial increases in key raw materials: Tin (+72%), Copper (+50%), Steel (+12%). A process is in place to pass on these cost increases to customers through price revisions.
  • Productivity & Cost Management: The company achieved margin expansion despite input cost inflation through a 25% increase in productivity, process improvements, and reduced raw material consumption.
  • Automation & Capex Plans: A detailed plan to invest approximately INR 9.5 crores in automation over the next 12-15 months was disclosed:
  • Menon Alkop: INR 5 crores
  • Menon Bearings: INR 4.5 crores
  • ROI: Expected return on investment in approximately 3-3.5 years.
  • Impact: The automation initiative in the bimetal bearing division alone is expected to reduce manpower by approximately 50 employees across 16 production lines.
  • Segment-Wise EBITDA Margins: Management provided specific margin ranges for business segments:
  • Brake Segment: 30% to 35%
  • Alkop Segment: 18% to 19%
  • Bearing Segment: 23%
  • Export Business Breakdown: Exports constitute 35% of total revenue. Of this export revenue, 80% is directed to the USA. A strategic shift is underway to diversify into the European market.
  • Business Diversification: The company is actively de-risking its portfolio. While its "basic DNA" is automotive (~60-65% of revenue), it is expanding into non-auto segments like home automation (Honeywell), oil & gas, generators (Cummins), and refrigeration compressors.
  • EV Business: The company confirmed it is on track to achieve its guidance of 8-10% revenue share from the EV segment in FY27. It supplies electric pump covers to Concentric for export and to TACO Prestolite for domestic EV models (Tata Punch, Curvv, Jupiter).

Working Capital and Cash Flow

  • The improvement in working capital, evidenced by strong operating cash flow of ~INR 20 Cr in H1 (similar to full-year FY26), is deemed sustainable. This was achieved after building up required customer inventory in the US.
  • Working capital needs are financed through low-cost packing credit loans available at 4.65-4.75%.

Conference Call Details

  • The earnings conference call was held on October 30, 2026, at 11:00 AM IST.
  • The management participants were Mr. Arun Aradhye (Managing Director) and Mr. Aditya Menon (Promoter Group).
  • The transcript has been uploaded on the company's website, www.menonbearings.in.