Synopsis: The shares of Menon Bearings Ltd gained traction among investors after the company reported strong third-quarter earnings, with profits up 69 percent year-over-year.
The shares of this company, which is engaged in the manufacturing of critical moving engine components like bearings, bushes, and thrust washers, are in focus after announcing Q3 results.
With a market capitalization of Rs 761 crore, Menon Bearings Ltd’s shares on Friday made a day high of Rs 141 per share, up by 11.5 percent from its previous day’s close price of Rs 126.45 per share. The share is trading at a healthy P/E of 24.2x, below the average industry P/E.
Results
QoQ
The revenue from operations grew by 23 percent to Rs 76.9 crore in Q3 FY26, corresponding to the last quarter in the same financial year. EBDIT grew by 48 percent to Rs 14.5 crore in Q3 FY26 from Rs 9.79 crore in Q2 FY26. Accompanied by Net profit growth of 36.2 percent to Rs 9.25 crore in Q3 FY26, resulting in an EPS growth of 36 percent to Rs 1.65 per share.
YoY
The revenue from operations grew by 32 percent to Rs 76.9 crore in Q3 FY26, corresponding to the same quarter in the last financial year. EBDIT grew by 48 percent to Rs 14.5 crore in Q3 FY26 from Rs 9.75 crore in Q3 FY25. Accompanied by Net profit growth of 69 percent to Rs 9.25 crore in Q3 FY26, resulting in an EPS growth of 68 percent to Rs 1.65 per share.
In Q3, the product-wise revenue mix comprised 74.38 percent from Bimetal, 22.36 percent from Alkop (aluminium alloy components), and 3.26 percent from braking systems. By channel, OEMs accounted for 47.60 percent of revenue, exports for 36.28 percent, replacement sales for 8.03 percent, and other channels for 8.09 percent.
The company is entering the EV segment through its Alkop division, supplying components to Porsche, the German luxury and sports car maker, via Eaton, an Ireland-based supplier. It aims to generate 8 to10 percent of Alkop’s revenue from EVs by FY27, while also exploring EV charging and emerging technologies under Menon New Ventures.
About the company
Incorporated in 1991, Menon Bearings Ltd. (MBL) is a leading Indian manufacturer of critical engine components like bearings, bushings, and thrust washers for automotive, industrial, and agricultural uses, known for supplying global OEMs and having a strong export market.
The company makes 30 percent revenue from exporting to over 24 countries, including USA, Brazil, Mexico, Netherlands, France, Italy, UK, UAE, Africa & Japan, competing against Global players. And it has 5 Plants in Kolhapur, India, across 27 acres, 1 Office & Warehouse in Indianapolis, USA.
The company delivers a ROCE of 19.6 percent and ROE of 16.3 percent, reflecting efficient capital use, with further upside potential as it scales, supported by a low debt-to-equity ratio of 0.33x that allows room for prudent leverage.
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