Talbros Automotive Components Limited , a leading player in the automotive components sector, has reported a flat revenue of INR 427.00 crores for the first half of fiscal year 2026 (H1 FY26). The company faced challenges due to muted momentum across the automotive industry and an unexpected disruption caused by a cyber-attack on a key European client.

Financial Performance

Despite the challenges, Talbros Automotive managed to deliver a robust EBITDA margin of 16.50% in H1 FY26, showcasing the company's operational excellence and cost-saving measures. The company's performance was impacted by a one-time business loss of approximately INR 10.00 crores due to the cyber-attack, which temporarily affected operations.

Export Performance

Exports continue to be a significant contributor to Talbros Automotive's business, accounting for 26% of the total revenue. The export mix is diversified across regions:

Strategic Joint Venture

Talbros Automotive has announced a strategic joint venture with Lohum Cleantech Private Limited. This partnership aims to develop two key products:

1. Recovered carbon black
2. Devulcanized rubber

The joint venture is expected to tap into the growing global markets for these products:

• Recovered carbon black: Part of the $27.00 billion virgin carbon black market
• Devulcanized rubber: $3.50 billion global market

The collaboration leverages Talbros' strong OEM relationships and manufacturing expertise with Lohum's advanced technology-led capabilities. The joint venture is projected to achieve the following targets:

• Revenue: INR 500.00-600.00 crores over 5 years
• EBITDA Margin: 15% plus

Future Outlook

Talbros Automotive remains optimistic about its future prospects:

• The company expects a strong recovery in Q3 and Q4 of FY26, driven by improved OEM schedules and increased domestic demand following GST reductions.
• The management anticipates achieving 10% year-on-year growth by the end of FY26.
• Talbros aims to increase its export contribution to around 35% by FY27, supported by new orders and recovery in the European market.

Mr. Anuj Talwar, Joint Managing Director, commented, "We are enthusiastic about our new joint venture and are focusing on strengthening our export and domestic businesses. With the recent GST cuts by the government, we expect a much stronger performance in the second half of the fiscal year."

As Talbros Automotive Components Limited navigates through short-term challenges, its strategic initiatives and diverse product portfolio position it well for long-term growth in the evolving automotive components market.

Talbros Automotive Components Limited has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing its performance and strategic initiatives. The company's board has also declared an interim dividend and approved a new joint venture.

Financial Highlights

For the quarter ended September 30, 2025, Talbros Automotive reported the following consolidated results:

For the half-year ended September 30, 2025, the consolidated results show:

Interim Dividend Declaration

The Board of Directors has declared an interim dividend of 10% (Rs. 0.20 per equity share of face value Rs. 2) for the financial year 2025-26. The record date for this dividend has been set as November 20, 2025.

New Joint Venture Announcement

Talbros Automotive has approved entering into a new joint venture with Lohum Cleantech Private Limited. Under this agreement, Talbros will hold a 49% stake, while Lohum Cleantech will own the remaining 51%.

Operational Performance

The company's consolidated cash flow statement shows an operating profit before working capital changes of Rs. 6,489.75 lacs for the period ended September 30, 2025.

Balance Sheet Strength

As of September 30, 2025, Talbros Automotive's consolidated balance sheet reflects:

• Total assets of Rs. 1,01,085.77 lacs, up from Rs. 95,054.02 lacs as of March 31, 2025.
• Equity base strengthened to Rs. 68,133.34 lacs, compared to Rs. 63,263.77 lacs at the end of the previous financial year.

Future Outlook

The declaration of an interim dividend and the formation of a new joint venture suggest confidence in the company's prospects. The auto components sector continues to evolve, and Talbros Automotive's strategic moves indicate its efforts to position itself in the market.