Menon Bearings Ltd. Share Price

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.

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: Precision Engineering & EV Expansion Drive Record Growth

By Neha Gupta, Research Analyst New Delhi | Menon Bearings Limited delivered its best-ever financial performance in FY26, driven by strong demand for precision-engineered automotive components, The company reported 22.79% revenue growth and an impressive 53.41% jump in Profit After Tax (PAT), highlighting strong execution despite a challenging automotive environment. Key Highlights 📈 Revenue increased 22.79% to ₹293.81 Crore 💰 PAT surged 53.41% to ₹38.25 Crore 🏭 Successfully expanded bearing and braking system capacities 🌍 Export contribution expected to reach ~37% of revenue by FY27 ⚡ Strengthening its EV presence through subsidiary Menon Alkop Industry Tailwinds India's automotive component industry continues to benefit from strong structural growth. Key drivers include: • Government support through PLI Scheme, FAME & Vehicle Scrappage Policy • China Plus One sourcing strategy Growth Strategy 1. EV Expansion 2. Railway Opportunity 3. Capacity Expansion Execution Check ✅ Record Revenue & Profitability ✅ Successful Capacity Expansion ✅ Improving Manufacturing Efficiency ✅ Growing Export Business ✅ Expansion into EV & Railway Segments Financial Strength • Strong operational performance • Healthy balance sheet • Disciplined capital allocation Corporate Governance Menon Bearings continues to maintain strong governance standards. More than 50% Independent Directors Key Risks ⚠️ Steel & Aluminium price volatility ⚠️ Automotive industry demand cycles Conclusion Menon Bearings is steadily evolving into a high-quality precision engineering company backed by strong financial performance, expanding export opportunities, and increasing exposure to high-growth sectors like Electric Vehicles and Railway Braking Systems. Disclaimer: This article is for educational purposes only and should not be considered investment advice. Investors should conduct their own research before making investment decisions.

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Menon Bearings Ltd. – SWOT Analysis

Strengths Weaknesses Leading manufacturer of precision engine bearings, bushes, thrust washers, flange bearings, and aluminium die-cast components for automotive and industrial applications. Fully integrated manufacturing operations with in-house alloy production, machining, tooling, and advanced manufacturing capabilities, providing quality and cost advantages. Strong relationships with OEM customers, exports to over 24 countries, and a diversified customer base with no single customer contributing more than 10% of revenue. Healthy balance sheet with low debt, planned capacity expansion, and entry into new product segments such as EV and railway components. High-quality certifications (IATF 16949, ISO standards) and consistent focus on operational excellence and timely delivery. Opportunities Threats Increasing demand from automotive, commercial vehicles, agriculture equipment, industrial machinery, and export markets. Growth opportunities in electric vehicle components, railway applications, and global OEM sourcing. Capacity expansion can support higher revenues and improved economies of scale. Rising localization of auto components under India's manufacturing initiatives. Dependence on the cyclical automotive industry may affect demand during economic slowdowns. Volatility in prices of copper, aluminium, steel, and other raw materials may pressure margins. Competition from global and domestic bearing manufacturers could impact pricing and market share. Technological shifts in vehicle powertrains may require continuous investment in product innovation.

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