Company Overview

Talbros Automotive Components Limited (BSE: 505160, NSE: TALBROAUTO) submitted its Annual Report for FY 2025-26, reporting exceptional financial performance and strategic milestones. The company achieved its first three-digit PAT milestone with record consolidated Profit After Tax of ₹104 Crores, representing 10% growth year-over-year.

Financial Performance Highlights

Standalone Performance (FY 2025-26):

  • Revenue from Operations: ₹870.04 Crores (₹827.05 Crores previous year) - 5.2% growth
  • Profit Before Tax: ₹13,092.56 Lakhs
  • Profit After Tax: ₹10,411.00 Lakhs (₹9,443.27 Lakhs previous year) - 10.25% growth
  • Basic EPS: ₹16.87 (₹15.30 previous year)
  • Total Assets: ₹108,510.39 Lakhs, with cash reserves surging 141% to ₹3,582.79 Lakhs
  • Total Borrowings: Reduced by 10% to ₹7,545.56 Lakhs

Consolidated Performance:

  • Total Income: ₹889 Crores (₹827.05 Crores previous year) - 5% growth
  • EBITDA: ₹155 Crores with margin of 17.5%
  • PAT: ₹104 Crores (₹94 Crores previous year)
  • Q4 FY26 Performance: 15% revenue growth with record EBITDA margin of 18.7%

Dividend Declaration

  • Interim Dividend: 10% (₹0.20 per equity share) declared and paid in December 2025
  • Final Dividend Recommended: 27.5% (₹0.55 per equity share) subject to AGM approval
  • Total Dividend Payout: ₹432.11 Lakhs for FY26
  • Record Date for Final Dividend: September 11, 2026

Business Segment Performance

Gasket and Heat Shield Business (52% of total revenue):

  • Maintained 50% market share in Indian gasket market
  • Developing solutions for hybrid and electric vehicle platforms
  • Total Income: ₹575.14 Crores

Forging Business:

  • Secured new orders worth ₹500 Crores from European OEMs
  • 80% production supplied to export markets
  • Commissioned new 1,600-tonne forging press, ordered 2,500-tonne forging line
  • Total Income: ₹294.90 Crores

Joint Ventures Performance:

  • Marelli Talbros Chassis Systems: Revenue ₹342.62 Crores (20.46% growth), PAT ₹351.30 Lakhs (22.75% growth)
  • Talbros Marugo Rubber: Revenue ₹146.73 Crores (13% growth), PAT ₹82.40 Lakhs

Capital Expenditure and Strategic Initiatives

  • FY 2025-26 Capex: ₹51 Crores
  • FY 2026-27 Planned Capex: ₹103 Crores for expansion including new manufacturing facilities
  • Lohum Talbros Carbon Private Limited: New JV with 49% equity stake for advanced recycling technologies
  • SANWA Technology: Exclusive manufacturing and distribution rights for lightweight aluminum heat shields

Financial Risk Management

Foreign Exchange Risk:

  • Unhedged exposures: Import payables ₹3,183.76 Lakhs, Export receivables ₹6,217.25 Lakhs
  • Sensitivity: 10% currency movement would impact profit by ₹241.77 Lakhs

Interest Rate Risk:

  • Variable rate borrowings: ₹7,442.21 Lakhs (99.4% of total borrowings)
  • Sensitivity: 50 basis points rate change would impact profit by ₹27.85 Lakhs

Liquidity Position:

  • Undrawn borrowing facilities: ₹2,685.52 Lakhs
  • Strong cash position: ₹3,582.79 Lakhs

Corporate Governance and Compliance

  • Board comprises 11 Directors (2 Executive, 9 Non-Executive including 5 Independent Directors)
  • Clean audit opinion from J.C. Bhalla & Co. with no qualifications
  • CSR Spending: ₹160.88 Lakhs supported various social organizations
  • 69th AGM scheduled for September 25, 2026 via Video Conferencing

Forward Outlook

The company maintains positive outlook with planned ₹103 Crore capex for FY27, expansion into recycled materials through new JV, and continued focus on electric vehicle components. Strong order book of ₹500 Crores from European OEMs provides visibility for future growth.