Any current/future new fundraising through debt or equity?

No major new fundraising through debt or equity is planned currently. Capital expenditures (CapEx) planned for the next two years are moderate, around ₹8-10 crores, mainly for adding machines and capacity expansion in aluminium and bi-metal divisions. Arun Aradhye mentioned that raising funds for projects will not be a problem if needed, but no concrete plans exist now. Capital commitment is decided project-by-project and based on calculated risks rather than a fixed capital ceiling. The company is studying some new projects like EV recharge but has not concluded any funding decisions yet.

Any current/future capex/capital investment/strategic investment?

Additional CapEx of around ₹7-8 crores planned for brakes division next year to add certain machines. Total CapEx of around ₹8-10 crores expected over the next two years covering aluminium and bi-metal divisions for additional capacity and machinery like CNC, VNC, and X-ray machines. No major new capital investments planned like previous years' land and building acquisition. Exploring potential investments in EV recharge projects and parts development, but these are still under evaluation with no concrete decisions yet. Board declined a joint venture proposal from a Chinese company due

Future growth expectations in sales/revenue/volumes?

Menon Bearings expects robust growth with FY27 revenue target of ₹350 crores, up from around ₹300 crores in FY26. Bi-metal segment projected to grow 16%-17% this year, with revenue around ₹250 crores in FY27. Aluminium division (Alkop) targeting 25% growth, aiming for ₹120 crores revenue in FY27. Brake division expected to ramp up quickly, targeting ₹100 crores revenue by next year. Export contribution is growing and expected to increase from current ~30% to 35%-40% for Alkop segment. New developments and customer sample approvals in aluminium and bi-metal segments to drive assured growth. Ord

Future growth expectations in earnings/operating earnings/profits/EPS?

FY26 revenue target: ₹300 crores with 22% EBITDA margin guidance maintained. FY27 revenue target: ₹350 crores, representing 18-20% year-on-year growth expected. Segment-wise FY27 revenue targets: ₹120 crores from Alkop (aluminium die casting), ₹250 crores from bi-metal, ₹100 crores from brakes. EBITDA expected to improve with raw material cost pass-through to customers anticipated post-September. Bi-metal segment projected to grow at 16-17%, Alkop at 25% in FY26. New order wins and approvals, such as from Eaton and US exports, underpin sustainable growth. Additional CapEx of ₹7-10 crores plann

Current/ Expected Orderbook/ Pending Orders?

Current order book position is ₹90 crore. Breakup of order book: ₹60 crore from bi-metal division and ₹30 crore from Alkop (aluminium division). Alkop division expects to reach ₹120 crore revenue in FY27 with 35%-40% coming from exports. Bi-metal division expected to contribute ₹250 crore in FY27. Brakes division target is ₹100 crore in FY27, with gradual ramp-up expected after acquiring the dynamometer by end of September. New orders include a ₹30 crore export order from a prominent USA customer starting production next month. Alkop division submitted 53 new parts last year, with sample testi

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Menon Bearings LtdQ2 FY25Auto Components

Menon Bearings Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹170P/E: 21.4Market Cap: ₹819 CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Menon Bearings expects robust growth with FY27 revenue target of ₹350 crores, up from around ₹300 crores in FY26.
→Bi-metal segment projected to grow 16%-17% this year, with revenue around ₹250 crores in FY27.
→Aluminium division (Alkop) targeting 25% growth, aiming for ₹120 crores revenue in FY27.
→Brake division expected to ramp up quickly, targeting ₹100 crores revenue by next year.
→Export contribution is growing and expected to increase from current ~30% to 35%-40% for Alkop segment.
→New developments and customer sample approvals in aluminium and bi-metal segments to drive assured growth.
→Order-books indicate strong demand pipeline with ₹90 crores current booking split 60:40 between bi-metal and Alkop.
→Company optimistic on sustainable growth with anticipated 18% - 20% year-on-year revenue growth in coming years.

Margin guidance

Category 3

→FY26 revenue target: ₹300 crores with 22% EBITDA margin guidance maintained.
→FY27 revenue target: ₹350 crores, representing 18-20% year-on-year growth expected.
→Segment-wise FY27 revenue targets: ₹120 crores from Alkop (aluminium die casting), ₹250 crores from bi-metal, ₹100 crores from brakes.
→EBITDA expected to improve with raw material cost pass-through to customers anticipated post-September.
→Bi-metal segment projected to grow at 16-17%, Alkop at 25% in FY26.
→New order wins and approvals, such as from Eaton and US exports, underpin sustainable growth.
→Additional CapEx of ₹7-10 crores planned for capacity expansion, supporting growth.
→Emphasis on value-addition (e.g., X-ray machine) expected to improve margins/realization.
→Management focused on sustainable and quality growth over rapid volume increase.

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Fundraise plans

→No major new fundraising through debt or equity is planned currently.
→Capital expenditures (CapEx) planned for the next two years are moderate, around ₹8-10 crores, mainly for adding machines and capacity expansion in aluminium and bi-metal divisions.
→Arun Aradhye mentioned that raising funds for projects will not be a problem if needed, but no concrete plans exist now.
→Capital commitment is decided project-by-project and based on calculated risks rather than a fixed capital ceiling.
→The company is studying some new projects like EV recharge but has not concluded any funding decisions yet.

Order book

Yes

→Current order book position is ₹90 crore.
→Breakup of order book: ₹60 crore from bi-metal division and ₹30 crore from Alkop (aluminium division).
→Alkop division expects to reach ₹120 crore revenue in FY27 with 35%-40% coming from exports.
→Bi-metal division expected to contribute ₹250 crore in FY27.
→Brakes division target is ₹100 crore in FY27, with gradual ramp-up expected after acquiring the dynamometer by end of September.
→New orders include a ₹30 crore export order from a prominent USA customer starting production next month.
→Alkop division submitted 53 new parts last year, with sample testing ongoing and production ramp-up expected post successful trials.
→Railways and OEM approvals pending for brakes division, dependent on dynamometer procurement and testing.

Capex plans

Yes

→Additional CapEx of around ₹7-8 crores planned for brakes division next year to add certain machines.
→Total CapEx of around ₹8-10 crores expected over the next two years covering aluminium and bi-metal divisions for additional capacity and machinery like CNC, VNC, and X-ray machines.
→No major new capital investments planned like previous years' land and building acquisition.
→Exploring potential investments in EV recharge projects and parts development, but these are still under evaluation with no concrete decisions yet.
→Board declined a joint venture proposal from a Chinese company due to geopolitical concerns; no current plans for joint ventures or acquisitions.
→CapEx and investments will be project-dependent and subject to calculated risk assessment.

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