Talbros Automotive Components Ltd

Meeting Details

• No meeting details (date/time/type) available in this excerpt.

Meeting Details

• Event type: Analyst / Investor Meet; under Company Update.

Financial Performance

• Q1 FY27 total income INR242 crores, up 15% YoY.
• EBITDA INR43 crores, margin 17.6%.
• PAT INR30 crores, up 35% YoY.
• Gasket division revenue INR164 crores, up 21%.
• Gasket EBITDA INR29 crores, up 32%.
• Forging revenue INR78 crores, up 4%; EBITDA INR14 crores.
• Marelli Chassis Systems revenue INR105 crores, up 43%; EBITDA INR17 crores.
• Talbros Marugo revenue INR40 crores, up 31%; EBITDA INR6 crores.
• Exports contribution ~25% of revenue; target 35% by FY28.
• Capex guidance INR103 crores for the year.
• FY27 revenue growth target 18-20%; EBITDA margins around 17-17.5%.
• Data-centre opportunity: generating revenues around INR30-40 crores annually.
• Kia full pace resumed; Stellantis chassis started production in Q1.
• EV mix share ~3.27% of revenue in Q1 FY27; target ~5% in 2 years.
• JLR EV components order INR15-20 crores per annum; supply starts next calendar year.

Operating Update

• Kia and Cummins: new orders; Stellantis chassis production started in Q1.
• Data-centre revenue stream emerging; gasket data-centre related demand rising.
• JLR EV components ramp; EV demand tied to broader EV launches.

Segment Trends

• Gasket: INR164 crores revenue; INR29 crores EBITDA; 21% YoY growth.
• Forging: INR78 crores revenue; INR14 crores EBITDA; 4% growth.
• Marelli Chassis JV: INR105 crores revenue; INR17 crores EBITDA; 43% growth.
• Talbros Marugo JV: INR40 crores revenue; INR6 crores EBITDA; 57% growth.
• Lohum Talbros progressing; strategic circular-economy initiative.

Exports and New Growth Areas

• Exports share at 25% of revenue; aim to 35% by FY28.
• Data-centre segment targets 30-40 crores annually; potential growth driver.
• Data-centre gasket revenue currently ~5% of gasket business.

Projects and Capex

• Capex planned: INR103 crores across gaskets, forgings, heat shields to meet OEM demand.

Outlook and Guidance

• FY27 revenue growth target 18-20%; EBITDA margin around 17-17.5%.
• Export share target 35% by FY28.
• Data-centre revenue potential 30-40 crores annually.
• Capex guidance: INR103 crores for FY27.

Q&A Highlights

• Diversification: European market weak; BMW increasing; Volvo potential gasket customer; Marelli with Stellantis; JLR EV components.
• Marelli stake: clearer picture by end-September; subject to court proceedings.
• Data-centre: gasket share ~5% in Q1 FY27; growth tied to Cummins involvement.
• EV mix: EV contribution ~3.27% of revenue in Q1 FY27; target ~5% in 2 years.
• JLR EV components order INR15-20 crores per annum; supply starts next calendar year.
• FY30 targets: gasket 850-900 crores; forging 600 crores.
• FY27 growth: Marelli fastest 30-40%; forging ~20%; gasket/TMR ~18-20%.

Risks and Watchpoints

• Temporary margin pressure from elevated steel/aluminium costs and inflationary labour costs.
• Forging Q1 softness due to manpower constraints and European order scheduling; July better than June.
• Marelli stake transaction subject to court proceedings; outcome uncertain by Sept 30.

Meeting Details

• The event is an Analyst/Investor Meet for Talbros Automotive Components Ltd.

Overview

• Total revenue from operations Rs 242 crore, up 15% YoY.
• EBITDA Rs 43 crore, up 23% YoY.
• Profit after tax Rs 30 crore, up 35% YoY.
• EBITDA margin 17.6%; PAT margin 12.4%.

Segmental performance

• Gasket & Heat Shield revenue Rs 163.7 crore.
• Forgings revenue Rs 78.4 crore; MTCS JV Rs 52.4 crore.
• Gasket & Heat Shield YoY growth 21%.
• MTCS JV YoY growth 43%; TMR 31%.
• Exports contributed 25% of total income from operations.

Outlook

• Outlook: group revenue growth of 18-20% YoY in FY27; EBITDA margins expected to be maintained.

Revenue mix

• OEM accounted for 64% of revenue; Exports 25%; After Market 3%; Others 8%.

Business Overview

• Auto components maker with five verticals: Gaskets, Heat Shields, Forgings, Suspension, Hoses.
• Key JVs: MTCS, TMR, Lohum Talbros Carbon to scale EV-ready and global supply.
• Exports dominated by Europe and UK (~80% of exports).

Operational Highlights

• Q1 FY27 consolidated revenue 238.4 cr; YoY +15%; EBITDA 42.8 cr, margin 17.6%.
• PAT before exceptional items 30.0 cr; PAT margin 12.4%.
• Orders worth over ₹1,000 cr secured across gaskets, heat shields, forgings; export and EV components.
• Export order book strengthening; Europe expansion supported by JV collaborations.

Financial Performance

• Total income 242.2 cr; revenue from operations 238.4 cr; YoY +15%.
• EBITDA 42.8 cr; EBITDA margin 17.6%; EBIT 34.4 cr; margin 14.2%.
• Closing cash balance 35.8 cr; investing cash flow -35.9 cr; financing -27.8 cr.

Capital Structure & Liquidity

• Equity capital ₹12.3 cr; total shareholders' funds ~₹743 cr.
• Closing cash balance ₹35.8 cr; financing activities negative.

Strategic Priorities & Outlook

• Europe expansion and strengthened global OEM relationships amid supply-chain realignment.
• FY27e capex ₹103 cr; FY26 ₹51 cr; additional capex to reach revenue goals.
• LOHUM TALBROS CARBON JV starts July 2026; Talbros 49% stake.
• Export orders ~₹2,700 cr provide medium-term visibility.
• 30+ OEM clients; five product verticals; EV-ready positioning.

Risks & Mitigation

• European auto market cyclicality and supplier consolidation.
• China capacity shifts and global supply-chain realignment; mitigated by diversification.

Governance & Leadership

• Strong board with independent directors; CEO Ashish Gupta; CFO Manish Khanna; Company Secretary Seema Narang.

Financial results approved

• Board approved unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026.
• Limited Review Reports from statutory auditors accompany the results.
• MD Anuj Talwar authorised to sign the results for exchange submission.

JV and segment disclosures

• Consolidated results include two joint ventures: Marelli Talbros Chassis Systems and Talbros Marugo Rubber.
• Auto Components & Parts is the single reportable segment.
• Group’s share of JV profit for quarter ended June 30, 2026: Rs 609.29 lakhs.

Auditor's review notes

• Standalone and consolidated results were reviewed; no audit opinion expressed.
• March 31, 2026 figures are balancing between audited full-year and prior year Q3.
• Notes indicate results comply with Ind AS 34 and SEBI Regulation 33 requirements.

Regulatory/compliance disclosures

• Labour Code provisions on wages, IR, social security, and safety are expensed and disclosed.
• Operating segment disclosed as Auto Components & Parts; no other segments.
• Past service cost figures for gratuity and leave encashment provided in notes.

Independent Director appointment

• Special Resolution to appoint Pratham Mittal as Independent Director for five years, not liable to retire by rotation.
• Outcome: Passed by requisite majority; promoter group expressed interest in the agenda.
• Impact: Independent director appointment enhances governance; five-year term.