Menon Bearings calls ₹360 cr FY27 target conservative after record Q1
Brake unit EBITDA hits 25% on mix; North America entry with Magna, Allison expected in H2
— 1 earlier story on Menon Bearings Ltd. →What's new
- Record Q1: standalone revenue up 40.4% to ₹67.1 cr, net profit up 67.4% to ₹14.1 cr
- Brake division EBITDA margin unexpectedly hit 25%; management targets sustainable ~20%
- US/Canada market entry planned with Magna and Allison Transmission; initial orders expected in Q3/Q4
Why this matters
Menon is firing on all cylinders after a record Q1. The ₹360 cr FY27 revenue target, called conservative, implies ~34% growth from a strong base. Export share target of 37% (from 24-30%) and a new continent entry signal a step-change in scale. The only caution: brake margins won't stay at 25%.
What we're watching
- Whether export ramp to 37% materializes by next year
- Timing of first North American orders from Magna/Allison
- Capex of ₹9-10 cr for bi-metal division and its impact on capacity
The full read
Menon Bearings just posted a record quarter – standalone revenue up 40.4% to ₹67.1 crore and consolidated net profit up 67.4% to ₹14.1 crore. That's the headline. The more telling signal: management called the ₹360 crore full-year revenue target conservative. This isn't guidance; it's aspiration backed by momentum. The brake division's 25% EBITDA margin arrived as a surprise from product mix – unsustainable, with a 20% target. The real story is geographic expansion: initial engine bearing orders from Magna and Allison Transmission in Q3/Q4 would open North America, while the export share target of 37% (from 24-30% ) implies a structural shift. Capex of ₹9-10 crore for bi-metal is modest. At ₹897 crore market cap and a P/E of 23.5x, growth is already priced in – but the call suggests there's more to come.
Questions answered
- Why did brake division EBITDA hit 25% and what is the sustainable level?
- A favourable product mix drove the unexpected 25% margin. Management targets a sustainable level closer to 20%, implying some normalization ahead.
- How conservative is the ₹360 cr revenue target?
- Management itself called the target conservative. With Q1 annualized revenue already around ₹268 cr (₹67.1 cr x 4), achieving ₹360 cr would require ~34% growth – plausible given the current trajectory and new export markets.
- What is the North America entry plan?
- Menon is engaging with tier-1 automotive suppliers Magna and Allison Transmission for engine bearings. Management expects initial orders in Q3 or Q4 of the current financial year.
- How does the export share target compare historically?
- Historically, exports have contributed 24-30% of sales. The target of 37% next year represents a significant step-up, driven by new market entry and existing customer growth.
Menon Bearings Ltd.
Latest quarter · Jun 2026
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All notes on MENONBE →- 17 Jul 2026 · 3:16 PM IST Menon Bearings calls ₹360 cr FY27 target conservative after record Q1
- 2d ago Menon Bearings Q1 profit jumps 67%, revenue up 37%