Q2 2026 Menon Bearings Ltd Earnings Call Transcript
Key Points
- Menon Bearings Ltd (BOM:523828) reported a 7% year-on-year revenue growth for Q2 FY26, reaching INR63.85 crore.
- The company achieved an 18% growth in EBITDA for H1 FY26, with margins improving to 18.8%.
- Menon Bearings Ltd is expanding its capacity across divisions, with strategic investments in solar power to enhance sustainability and reduce costs.
- The company has entered the EV component segment, expecting it to contribute 8% to 10% of Alkop revenue by FY27.
- Exports are projected to increase from 30% to 40% of total revenue by FY27, driven by strong demand from the US and African markets.
- The company faced a decline in EBITDA margins to less than 16% in Q2 due to higher raw material costs and increased operating expenses.
- There were delays in obtaining approvals for the brakes business from the railways, impacting potential revenue growth.
- Tariff issues in the US market created uncertainty, although the company is negotiating cost-sharing with customers.
- The brakes business has underperformed, contributing only INR4 crore in H1, against a target of INR13 crore to INR14 crore for the year.
- Capacity utilization across segments is between 70% to 75%, indicating room for improvement in operational efficiency.
Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q2 and H1, FY26 post earnings conference call of Menon Bearings Limited.
Today on the call from the management team we have with us, Mr. Arun Aradde, Whole-time director and CFO, and Mr. Aditya Menon, who's a part of the promoter group.
As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ending September 2025, the growth plans and envisioned for the coming year, post which we will open the floor for Q&A.
Over. To you, sir.
Okay.
Thank you, Mr. Rene.
So, good afternoon, everyone.
And I wish you all the best for the next year, that is some of the year.
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