Q1 FY27 Financial Performance

Revenue & Profitability:

  • Revenue from Operations: ₹304.3 crore, up 4% YoY from ₹291.6 crore in Q1 FY26
  • Gross Profit: ₹169.3 crore, up 15% YoY
  • Gross Margin: 55.6%, improved by 490 bps from 50.7% in Q1 FY26
  • EBITDA: ₹68.7 crore, up 12% YoY
  • EBITDA Margin: 22.6%, improved by 150 bps from 21.1% in Q1 FY26
  • Profit After Tax (PAT): ₹60.2 crore, up 22% YoY from ₹49.2 crore
  • PAT Margin: 19.8%, improved by 290 bps from 16.9% in Q1 FY26
  • EPS: ₹2.21, up 22% from ₹1.81 in Q1 FY26

Segment Performance:

  • Bearing Rings Revenue: ₹118 crore, down 6% YoY
  • Auto Components Revenue: ₹163 crore, up 13% YoY
  • Export Mix: Bearing Rings exports at 73% of segment revenue; Auto Components exports at 72% of segment revenue
  • Total exports now constitute more than half of component sales

Operational Context:

Revenue growth was constrained by labor shortage during the quarter, despite healthy order book. The labor situation normalized from June 2026, with operations running normally by start of Q2 FY27.

Capital Structure & Shareholder Returns

  • Completed ₹180 crore buyback during Q1 FY27
  • Promoter Group did not participate in buyback
  • Company is now fully debt-free and clear of all legacy CDR obligations
  • Finance Cost: ₹0.2 crore (minimal)

Historical Financial Performance (Annual)

FY26 Performance:

  • Revenue from Operations: ₹1,143.5 crore
  • Gross Profit: ₹588.8 crore (51.5% margin)
  • EBITDA: ₹230.2 crore (20.1% margin)
  • PAT: ₹141.1 crore (12.3% margin)
  • Exceptional Items: ₹51.6 crore related to Right of Recompense (RoR) settlement
  • Adjusted PAT (excl. exceptional items): ₹192.7 crore (16.9% margin)
  • EPS: ₹5.18; Adjusted EPS: ₹7.07

RoR Settlement:

The company honored its Right of Recompense obligations to consortium lenders with payments aggregating ₹101 crore in FY26, following provisions of ₹32.0 crore in FY24 and ₹18.6 crore in FY25.

Balance Sheet Position (as of March 2026)

  • Total Equity: ₹1,213.6 crore (Share Capital: ₹27.2 crore; Reserves: ₹1,186.3 crore)
  • Non-Current Liabilities: ₹55.2 crore
  • Current Liabilities: ₹102.3 crore
  • Total Assets: ₹1,371.1 crore
  • Property, Plant & Equipment: ₹446.2 crore
  • Investments: ₹288.2 crore
  • Trade Receivables: ₹219.6 crore
  • Inventories: ₹235.0 crore
  • Cash & Cash Equivalents: ₹69.3 crore

Operational Capabilities

Manufacturing Infrastructure:

  • 3 manufacturing units in Rajkot, Gujarat
  • 26 forging lines with installed capacity of 1,65,000 MTPA
  • 625 machining spindles with capacity of 75 million parts per annum
  • In-house tool making capabilities

Product Portfolio:

  • Bearing Rings: Inner & outer rings for various bearing types (20mm ID to 90mm OD; 0.01kg to 163+ kg)
  • Automotive Components: Transmission components (gear blanks, ring gears), chassis components (wheel hubs, hub bearing units), CVJ components

Growth Strategy & Outlook

Growth Guidance: Mid-teen growth guidance for FY27

Strategic Focus Areas:

  • Customer & Market Diversification: Expanding into Asia-Pacific and Middle East markets
  • Sector Expansion: Strengthening presence in EVs, renewables, industrial automation, and aerospace
  • Product Innovation: Scaling advanced machining capabilities for complex, critical-tolerance parts
  • Operational Excellence: AI-led quality checks, predictive maintenance, integrated ERP/PLM systems
  • Sustainability Initiatives: Renewable energy adoption, waste reduction, water recycling

ESG & Sustainability Initiatives

Renewable Energy:

  • Total installed renewable capacity: 21.55 MW (2.3 MW rooftop solar, 15.5 MW ground-mounted solar, 3.75 MW wind)
  • Additional 9 MW solar plant to be setup by mid-CY2026
  • Target: 60% consumption from renewable energy by 2030

Other Initiatives:

  • Afforestation: 12,000+ trees planted over past 5 years, with 500+ trees planted annually
  • Water Management: Wastewater treated and reused for gardening and internal applications
  • Circular Waste Management: Canteen waste processed through biogas plant for cooking; oil-water separator system for reuse

Management

  • Chairman & Managing Director: Mr. Manesh Madeka (39+ years experience)
  • Whole-time Directors: Mr. Bhautik Madeka, Mr. Mihir Madeka
  • Independent Directors: Mr. Pravinchandra Dholakia, Mr. Ashit Vankani, Ms. Jignasa Mehta
  • CFO: Mr. Hiren Doshi