Talbros Automotive Components Ltd Q3 FY26 Earnings Analysis

Future growth expectations for Talbros Automotive Components Limited: - Full-year revenue growth expected at around 10% for FY26. - Anticipated strong demand and better performance in Q3 and Q4 FY26, driven by GST cuts and festive season recovery. - Target revenue of INR1,750 to 1,800 crores for the next year (FY27), including INR1,100 crores from core divisions plus Marelli and Marugo businesses. - Export revenue expected to increase from current 26% to approximately 35% by FY27, supported by new large orders like Stellantis (INR100-150 crores order starting January). - New joint venture with Lohum Cleantech projected to contribute INR500-600 crores over the next 5 years with healthy EBITDA over 15%. - New customer additions expected to add incremental annual revenue between INR10-15 crores each (e.g., Kia, Kamaz, Cummins). - Recovery from recent cyberattack disruption expected to be complete by December 2025, boosting volumes and revenues.

- Full-year revenue expected around INR1,750 to INR1,800 crores in FY26, with 10% growth full year (Q2 flat, strong recovery in H2) - EBITDA margins steady around 16.5%, supported by improved product mix and operational excellence - Lohum JV targeting INR500-600 crores revenue over next 5 years with 15-18% EBITDA margins due to low raw material costs - Second half FY26 (Q3, Q4) expected to be "much, much better" driven by domestic GST cuts and ramp-up in export orders (Europe, Stellantis project) - New large orders and joint ventures expected to boost growth; announcements planned by March 2026 - Strong pipeline including new customers like Kia, Kamaz, Cummins, and new exports to Mercedes, JCB, Daimler, & others - Long-term goal to increase export contribution from ~26% to around 35% by FY27, aiding margin expansion

- Current year's capex focused on Gasket and Forging divisions, totaling around INR 50 crores. - Additional capex of INR 8 crores for the Marugo Rubber business. - Significant capex of around INR 60 crores spent in the Marelli business this year. - New JV with Lohum Cleantech involves a planned capex of INR 70 crores over the next 2 years. - The JV capex will be financed with 40% equity and 60% debt. - Planned investments aim to ramp up the JV and expand capabilities in recovering carbon black and devulcanized rubber. - These investments align with growth, product diversification, and technology expansion strategies targeting profitability and sustainability.

- No explicit mention of any immediate or planned fundraising through debt or equity in the transcript. - The discussion on Capex and joint venture funding indicates: - JV (Lohum) capex requirement of INR 70 crores over the next 2 years. - Funding for the JV planned as 40% equity and 60% debt. - No other new debt or equity fundraise announcements or plans indicated for Talbros Automotive Components Limited outside of this JV setup. - Focus appears to be on operational growth, new orders, and ramping up existing businesses rather than fresh large-scale fundraising.

- Talbros won two large orders close to INR 500 crores last year. - Navin Juneja mentioned that new orders are coming, but specifics will be announced when the order amount becomes sufficient. - The company expects to provide an update on order book status by March. - New customer additions include Kia (INR 13-15 crores annually), Kamaz Russia (INR 10 crores annually), and Cummins gasket (INR 10 crores annually), all expected to start production around January-February 2026. - Orders from Mercedes in the Europe business are starting, with sample supplies in Nov-Dec and volume growth expected from January. - Production start for a large Stellantis export order of INR 100-150 crores anticipated from January 2026. - Export business order recovery from a cyberattack is expected to reach 100% by December 2025.