Menon Bearings Limited – Investor Presentation Summary

Key Operational Highlights

  • Increasing exports and domestic orders for larger diameter bearings, bushes, and washers
  • Samples received from prominent US company for aftermarket
  • Targeting high-volume, high-value parts for additional annual business
  • 38 parts developed and tested for major customer with substantial orders anticipated for domestic and export markets
  • In-house melting, die casting (pressure & gravity), machining, and powder coating; handling components up to 12kg
  • Growing export footprint and domestic aftermarket
  • Dynamometer installation underway for railway approvals and OEM orders

Segment-wise Performance

Bi-Metal Products: Expected to generate Rs. 50-60 Cr annually within 2 years from new developments

Alkop Brakes: Expected significant turnover increase in FY26-27 post-Dynamometer commissioning

Braking Systems: Focus on M&HCV Segment and Aftermarket with installed capacity of 30 lakh units/annum for Brake Lines

Financial Highlights

Revenue: Rs. 100.88 Cr (Q2 FY27), Rs. 194.93 Cr (H1 FY27)

EBITDA: Rs. 22.20 Cr (Q2 FY27), Rs. 44.58 Cr (H1 FY27)

PAT: Rs. 14.73 Cr (Q2 FY27), Rs. 28.85 Cr (H1 FY27)

EPS: Rs. 2.63 (Q2 FY27), Rs. 5.15 (H1 FY27)

Margins: EBITDA Margin 22.00% (Q2 FY27), 22.87% (H1 FY27); PAT Margin 14.60% (Q2 FY27), 14.80% (H1 FY27)

YoY comparison: Revenue up 58.6% YoY (Q2), 47.4% YoY (H1); EBITDA up 103.8% YoY (Q2), 77.0% YoY (H1); PAT up 117.1% YoY (Q2), 89.5% YoY (H1)

Drivers of financial performance: Higher revenue growth, operational efficiencies

Geographical Revenue Split

Domestic vs Export: Exports currently at ~34% of revenue

Projection: Exports projected to reach 37% by FY27

Regional Breakdown: Exporting to over 24 countries including USA, Brazil, Mexico, Netherlands, France, Italy, UK, UAE, Africa & Japan

Specific Export Targets: Exports to USA expected to generate ~₹30 Crores revenue per year

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Rs. 195.13 Cr (H1FY27)

Current Assets/Liabilities: Current Assets Rs. 163.98 Cr, Current Liabilities Rs. 70.81 Cr (H1FY27)

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong cash position with Cash and cash equivalents of Rs. 16.57 Cr (H1FY27)

Capex & Cash Flow Health

Capital Expenditure: ₹7 crore capex planned over next two years for Alkop capacity enhancement

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion, technology upgrades, and matching targeted growth

Strategic & R&D Initiatives

Investments in Innovation: Robotic automation roadmap with five initiatives from Nov 2026 – Apr 2027

Expected impact on growth: Targeting EV segment to be 8-10% of Alkop by FY27; new components have revenue potential of approximately ₹55 crore annually

Strategic Rationale: Expanding into high-growth markets (EV), reducing operational costs through automation

Specific Projects: Dual-CNC robotic cell for Honeywell STT caps (Nov 2026), Dual-VMC robotic cell for JD ISG parts (Jan 2027), Dual-VMC robotic cell for Honeywell STT housings (Mar 2027), Vision inspection and powder coating automation (Apr 2027)

Industry Trends & Business Environment

Macro/Industry Trends: India set to achieve annual GDP growth 6% to 7%; Indian auto component industry projected to reach US$ 200 billion by 2030; EV transition with national mission for 30% electric mobility by 2030

Impact on Company: Positioning for EV transition through components supply to Tesla and Porsche E-Mobility; leveraging growth in auto component industry

Management Commentary & Growth Outlook

Strategic Outlook: Total projected annual revenue from new initiatives across divisions is expected to increase with capex investments ensuring scalability

FY Guidance: Exports projected to reach 37% by FY27; Alkop segment expects revenue of ₹95 Cr by FY27 (from ₹40 Cr now)

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

Additional Material Information

Capacity Expansion: Current production at 40 lakh pcs until H1FY27 (annualized), representing ~53% uplift

Sustainability Initiatives: Solar Power System (3,870 kWp) producing ~53,67,828 kWh/year; Energy-Efficient Motors saving 1,800–2,000 kWh/year; LED Lighting; Electric Holding Furnace; Boilers with Pre-Heat Chambers

Market Position: Operating in 4 Player market in India; Only Indian Company in Engine Bearings Segment; No single customer contributes more than 10-12% of business

Manufacturing Capabilities: 5 Plants in Kolhapur across 27 acres; 1 Office & Warehouse in Indianapolis, USA; In-house Powder Manufacturing facility using Water Jet Atomization

Product Applications: Automotive (40 to 225 mm dia), Compressors, Oil & Gas, 2W/3W, Pumps, Safety Equipment