Menon Bearings sets ₹500 crore revenue target for FY28
The company reported a 23% revenue jump to ₹300 crore and a 53% surge in net profit, backed by expansion into aluminium and Bi-Metal segments.
What's new
- Consolidated FY26 revenue hit ₹300 crore, up 23% year-on-year.
- Management targets ₹500 crore in revenue by FY28, implying a 25% CAGR.
- Capex of ₹35 crore planned over two years for Bi-Metal, Alkop, and brakes divisions.
Why this matters
The company is hitting its marks with 50% growth in exports and healthy profitability. The explicit 25% CAGR target is ambitious, but the pipeline of new products adds tangible support to these goals.
What we're watching
- Whether margins hold in the 20-22% target range despite planned capital spending.
- The conversion rate of European inquiries into firm export contracts.
- The actual revenue contribution from the new ₹80 crore product pipeline.
The full read
Menon Bearings delivered a 23% revenue increase to ₹300 crore and a 53% jump in net profit to ₹38.25 crore for FY26. Management is pushing for a ₹500 crore revenue run rate by FY28. This relies on a 25% CAGR. To hit that, the company is committing ₹35 crore in capital expenditure over the next two years—the largest share of which, ₹25 crore, goes into its Bi-Metal division. New parts are the core of this growth strategy, with the company forecasting ₹80 crore in cumulative revenue from the aluminium and Bi-Metal pipelines. Exports now comprise 35% of the top line, remaining a bright spot after growing 50% last year. US demand leads that growth, while management tracks new inquiries from Europe. With EBITDA margins guided at 20-22%, the plan is to scale without thinning profitability. It is a plan built on steady demand.
Questions answered
- What is the breakdown of the ₹35 crore capex plan?
- The investment spans three divisions over two years: ₹25 crore for Bi-Metal, ₹7 crore for Alkop, and ₹3 crore for its brakes business.
- How do exports impact total revenue?
- Exports now account for 35% of total revenue. The segment grew by 50% year-on-year, primarily fueled by demand from the US market.
- What are the new product revenue expectations?
- Management anticipates that new components will contribute ₹30 crore from aluminium products and ₹50 crore from Bi-Metal products over the next two years.
- What margin guidance has management provided?
- The company expects EBITDA margins to stay between 20% and 22%.