Menon Bearings Limited achieved its highest-ever sales, EBITDA, and profit before tax and PAT for the quarter ended June 30, 2026. The company reported robust growth in revenue and profitability, driven by healthy demand across all business segments, improved operational efficiencies, and cost optimization. The management expressed confidence in sustaining this momentum, citing new business opportunities in North America and Europe.

Financial Performance

On a standalone basis, sales increased to ₹67.06 crore from ₹47.76 crore, a year-on-year rise of 40.41%. EBITDA grew by approximately 60%, while profit before tax rose 64.32% to ₹14.85 crore. Consequently, profit after tax increased by 63.53% to ₹11.23 crore.

On a consolidated basis, sales reached ₹91.79 crore compared to ₹67.21 crore in the corresponding quarter of the previous year, registering a growth of 36.57%. Total income increased by 37.05%. Consolidated EBITDA improved by 57%, and profit before tax grew 67.36% to ₹18.51 crore. Profit after tax increased by 67.35%, with earnings per share improving significantly to ₹2.52 compared to ₹1.50.

Operational Highlights and Margins

The company reported strong operational performance across its segments. Management noted that the EBITDA margin for the bi-metal segment is around 21%, while the Alkop segment is nearly 21%. Notably, the brakes segment achieved an EBITDA margin of 25% for the quarter, attributed to a favorable product mix, though it typically ranges between 12% and 14%.

Growth Drivers and Outlook

Menon Bearings is pursuing growth through exports and new market penetration. The company expects additional business potential of around ₹65 crore to ₹75 crore from recent visits to Canada and the USA, subject to geopolitical conditions. It is also targeting entry into the African market for bearings, bushes, washers, and brake linings, with estimated revenue potential of ₹9 crore and ₹6 crore to ₹7 crore respectively.

The company is investing ₹9 crore to ₹10 crore in the current financial year to increase capacity by 25% to 30%, which is expected to yield additional revenue of over ₹25 crore. For the aluminium die casting business, the realization has risen to ₹900-plus due to increased raw material prices. The management has set a conservative revenue guidance of ₹360 crore for the year, with an internal target to reach ₹500 crore sooner than previously planned.

Menon Bearings has reported its highest ever quarterly revenue, net profit, and EBITDA for the quarter ended June 30, 2026. Consolidated net profit rose 67.35% to ₹141.07 crore from ₹84.30 crore in the corresponding quarter of the previous year, while revenue from operations increased 37.2% to ₹917.89 crore. The company’s operational efficiency improved significantly, with EBITDA growing 56.8% to ₹223.78 crore and EBITDA margins expanding to 23.80%. The Board of Directors has approved an interim dividend of ₹2 per equity share for the financial year 2026-27.

Q1 Financial Performance

The company achieved record financial metrics across the board, driven by strong demand in the auto components segment. The table below summarises the key consolidated financial metrics for Q1FY27:

Operational Highlights and Expansion

On a standalone basis, net profit for the quarter rose 63.53% to ₹112.33 crore, while total income increased 41.01% to ₹684.66 crore. The company is progressing with capacity expansion initiatives across its divisions. Production capacity for the Bi-Metal division increased to 580 lakh units in FY26 from 486 lakh units in FY25, representing a 19% uplift. Similarly, the Brakes division saw its capacity rise to 50 lakh pieces in FY26 from 30 lakh pieces in FY25, a 67% increase. The company is also targeting high-volume, high-value parts for additional annual business, with new initiatives expected to generate significant revenue in FY26-27.

Dividend Declaration

The Board has fixed Wednesday, July 22, 2026, as the record date to determine shareholder eligibility for the interim dividend. The payout of ₹2 per share, or 200% of the face value, will be dispatched or credited to shareholder accounts between Monday, July 27, 2026, and Tuesday, August 4, 2026. The total dividend outflow is expected to be ₹1,120.80 lakhs.