Menon Bearings: exports drive a 67% profit jump

Menon Bearings Limited (NSE: MENONBE) posted record Q1 FY27 revenue of ₹91.8 crore, up 36.6%. Net profit jumped 67.3% to ₹14.1 crore. The stock has more than doubled in a year. What happened EBITDA rose 56.8% to ₹22.4 crore, so margin reached about 24%. Earnings per share was ₹2.52 and the board declared a ₹2 interim dividend on a ₹1 face value share. It makes bearings, bushes and thrust washers for heavy duty diesel engines, plus aluminium die cast parts. Exports should reach 40% of revenue in FY27. Capacity has been raised too. The bi-metal line went from 486 lakh to 580 lakh units, and brakes from 30 lakh to 50 lakh pieces. Why it matters Global carmakers are qualifying Indian suppliers for precision parts. Menon is small enough that one export programme moves its numbers. My view The operating leverage is the real story. Revenue grew 37%, EBITDA grew 57%. Export orders carry better realisations, and the new capacity is being filled, not idling. Return on equity is above 22%, and FY26 profit had itself risen 53%. Now the caution. Being small cuts both ways. One customer deferring a programme can knock out a quarter. FY26 revenue was just ₹299 crore, so the cushion is thin. On price, the stock trades near ₹285, about 36 times trailing earnings and over five times sales, after a 145% rise in six months. Annualise this quarter and it is nearer 28 times. The growth is real, but so is the re-rating already banked. What I am watching Q2 FY27 results in late October, the export share actually reaching 40%, and margin holding near 24%. On the chart, ₹293 is the high and ₹240 is support. My stance: Hold. Add on dips near ₹240, and keep the position small. Disclosure: I do not hold a position in Menon Bearings Limited at the time of writing. This is not investment advice.