Talbros Automotive Components LtdQ1 FY27
Talbros Automotive Components Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹408P/E: 22.8Market Cap: ₹2.6K CrSector: Auto Components
Management growth scorecard
Revenue
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Margin
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Fundraise
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Order
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Capex
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0 of 0 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
- →Gasket division targeted revenue: INR 850-900 crores by FY 2030.
- →Forging division targeted revenue: INR 600-700 crores by FY 2030.
- →Marelli JV expected to grow fastest with 30%-40% growth in FY27.
- →Forging segment to grow around 20%+ in FY27.
- →Gasket and TMR divisions anticipated growing around 16%-20% in FY27.
- →Overall company targeting 18%-20% revenue growth for FY27.
- →EV component contribution expected to increase from 3.27% currently to around 5% in next 2-3 years.
- →New orders and expansions with global OEMs (e.g., Jaguar Land Rover, Cummins, Kia, Stellantis) expected to support growth.
- →Export revenue goal set at 35% by FY28.
- →New segments like data centre engine gaskets and lightweight heat shields targeted for growth.
- →Sustainable EBITDA margin guidance around 17%.
Margin guidance
- →Talbros Automotive targets revenue growth in key divisions by FY30:
- → - Gasket division: INR 850-900 crores
- → - Forging division: INR 600-700 crores
- →Fastest growth expected in FY27 from Marelli JV (30%-40%), forging (20%+), gasket and TMR (18%-20%).
- →Sustainable EBITDA margin guidance: around 17%.
- →Q1 FY27 showed 15% Y-o-Y revenue growth with 17.6% EBITDA margin and 35% PAT growth.
- →Forging division expected double-digit growth in Q2 FY27 and 15%-20% growth by year-end.
- →EV business contribution expected to rise from 3.27% in Q1 FY27 to ~5% in next 2-3 years.
- →New orders and improving operational efficiencies expected to improve profitability.
- →Strong order book presence in export markets providing revenue visibility and margin stability.
Fundraise plans
- →There is no explicit mention of current or future fundraising through debt or equity in the provided transcript.
- →The company discusses planned capex of about INR103 crores for the year across divisions (gaskets, forgings, heat shields) to meet OEM demands.
- →There is no direct reference to raising funds via equity or debt to finance this capex or other operations.
- →The focus is on revenue growth, operational improvements, and expanding customer base rather than on capital raising activities.
- →Any potential significant investment, such as a stake acquisition in Marelli, is under discussion but no fundraising linked to that is mentioned.
- →Overall, no clear or stated plans for new debt or equity fundraising are disclosed in this earnings call transcript.
Order book
- →Forging division has a serious order book of approximately INR 500 crores for 5 years (~INR 100 crores per annum).
- →New orders from Marelli expected to mature in Q3 and Q4, boosting forging division performance.
- →Order book for forging and gasket divisions supports targeted growth rates (forging 15–20%, gasket ~17% growth).
- →New orders secured from Kia and Cummins adding depth to the order book.
- →Started supplying Stellantis in forging and heat shield divisions after 2 years of development.
- →Growing EV component orders from JLR (~INR 15–20 crores annually starting from next calendar year).
- →Export order contribution targeted at 35% by FY28.
- →Data centre gasket business growing, currently INR 30–40 crores annual revenue potential with scope to reach INR 100 crores in 2–3 years.
Capex plans
- →Planned capex for FY27 is about INR103 crores.
- →Capex is targeted across gaskets, forgings, heat shields to meet OEM demand.
- →The company is exploring a potential new plant in Gujarat for chassis components, in discussions with Tata Motors.
- →Investment underway in Lohum Talbros JV focusing on sustainable materials to recover Carbon Black and Devulcanized Rubber, aiming to strengthen presence in the circular economy.
- →Expansion plans include scaling exports to 35% by FY28 and growing gasket and forging divisions significantly by FY30.
- →Possible acquisition or stake increase in Marelli Chassis Systems is expected to be clarified by end of September.
- →Continuous investment in technology and capacity to sustain growth momentum.
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Margin guidance
- →Talbros Automotive targets revenue growth in key divisions by FY30:
- → - Gasket division: INR 850-900 crores
- → - Forging division: INR 600-700 crores
- →Fastest growth expected in FY27 from Marelli JV (30%-40%), forging (20%+), gasket and TMR (18%-20%).
- →Sustainable EBITDA margin guidance: around 17%.
- →Q1 FY27 showed 15% Y-o-Y revenue growth with 17.6% EBITDA margin and 35% PAT growth.
- →Forging division expected double-digit growth in Q2 FY27 and 15%-20% growth by year-end.
- →EV business contribution expected to rise from 3.27% in Q1 FY27 to ~5% in next 2-3 years.
- →New orders and improving operational efficiencies expected to improve profitability.
- →Strong order book presence in export markets providing revenue visibility and margin stability.
Order book
- →Forging division has a serious order book of approximately INR 500 crores for 5 years (~INR 100 crores per annum).
- →New orders from Marelli expected to mature in Q3 and Q4, boosting forging division performance.
- →Order book for forging and gasket divisions supports targeted growth rates (forging 15–20%, gasket ~17% growth).
- →New orders secured from Kia and Cummins adding depth to the order book.
- →Started supplying Stellantis in forging and heat shield divisions after 2 years of development.
- →Growing EV component orders from JLR (~INR 15–20 crores annually starting from next calendar year).
- →Export order contribution targeted at 35% by FY28.
- →Data centre gasket business growing, currently INR 30–40 crores annual revenue potential with scope to reach INR 100 crores in 2–3 years.
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