Order Book Or Contract Wins
Expected: FY27HIGH confidence
What: Order Book: ₹350 Cr for FY27
“Current order book position is for this year it is INR290 crores and for the next year it is INR350 crores.”
Menon Bearings Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +22.9%AverageRe-Entry
In , Menon Bearings Ltd (Auto Ancillaries - Bearings) is outperforming Nifty 500 with +22.9% relative strength. Fundamentals: Average.
Menon Bearings Ltd Key Facts
- PE Ratio
- 22.7x
- Market Cap
- ₹705 Cr
- PAT Growth YoY
- +69%
- Revenue Growth YoY
- +32%
- OPM
- 18.8%
- RS vs Nifty 500
- +22.9%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 23% YoY — leverage rising
💰Trading 37% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
FY27HIGH
2. Operating Leverage Inflection
Q3 FY26HIGH
3. Geographical Expansion
OngoingMEDIUM
Key Risks
1. Copper prices increased from ₹900 to ₹1,200 per kilo, creating a significant cos
HIGH2. US tariffs on bearings were 50%, though recently reduced to 25% for some segment
MEDIUM3. Transit times to the US have increased from 35 days to 60 days
LOWSector-Specific Signals
Export Revenue %36%+300 bps
Capacity Utilisation - Bearings90%
Capacity Utilisation - Alkop65%
Peak Asset Turns2.5x
Key Numbers
PAT Growth YoY
+69%
Stable
Revenue YoY
+32%
Stable
Operating Margin
18.8%
+210 bps YoY
PE Ratio
22.7
Current Price
₹126
Dividend Yield
1.59%
Fundamental Score
58/100
Average
3Y PAT CAGR
-13%
Market Cap
792 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Menon Bearings Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: PAT Growth: 69% YoY
Impact: ₹9.3 Cr PAT
“PAT grew by 34% to ₹24.5 crores [9M], reflecting sustained operating leverage and improved efficiency across our business.”
Geographical Expansion
Expected: OngoingMEDIUM confidence
What: Export Share: 36%
Impact: ₹2.5 Cr/month from Allison
“Allison Transmission, and that alone business has added value of more than ₹2.5 crores a month... we have tapped the South African market as well.”
New Product Or Brand Launch
Expected: Next YearMEDIUM confidence
What: EV Component Revenue: ₹1.25 Cr/month potential
“engaging one of the major customers for PTFE bushes, which are required for EVs. And the business volumes are to the tune of almost ₹1.25 crores a month.”
Interest Cost Reduction Deleveraging
Expected: OngoingMEDIUM confidence
What: Working Capital Cycle: 30 days
Impact: 20% cost reduction
“margins will remain same because we will be reducing the cost by about 20%. On the contrary, 5% margin will be increased.”
Q3 PAT growth of 69% YoY
HIGH confidence
What: Q3 PAT growth of 69% YoY
“PAT at ₹9.3 crores also up 69%... reflecting sustained operating leverage and improved efficiency across our business.”
FY26 Revenue guidance raised
HIGH confidence
What: ₹285-290 Cr → ₹290-295 Cr
“For this year, what we project that whatever order book position, if we consider that, we may reach up to ₹295 crores.”
What Are the Key Risks for Menon Bearings Ltd?
Earnings deceleration risks from management commentary
Copper prices increased from ₹900 to ₹1,200 per kilo, creating a significant cos
HIGHTrigger: Tremendous volatility in non-ferrous materials.
Impact: PAT impact: ₹70 lakhs/month burden
Management view: Passing on costs via 3-6 month contracts and process improvements saving ₹55-60 lakhs/month.
Monitor: commodity
US tariffs on bearings were 50%, though recently reduced to 25% for some segment
MEDIUMTrigger: Trade restrictions and tariffs imposed by the U.S.A.
Management view: Moving to ex-works terms where customers bear the tariff burden.
Monitor: geopolitical
Transit times to the US have increased from 35 days to 60 days
LOWTrigger: Global shipping disruptions.
Management view: Maintaining 3-5 months of stock in US warehouses to ensure supply continuity.
Monitor: logistics
What Is Menon Bearings Ltd's Management Saying?
Key quotes from recent conference calls
“As I already told you that we'll be reaching between INR285 crores to INR290 crores during this year, '25-'26, considering the order book position. [Previous Revenue FY26 guidance]”
“For the entire year, it will be between 19% to 20%. [Previous EBITDA Margin FY26 guidance]”
“we have completed installation of 3.8 megawatt rooftop solar installations, covering all plants, which will curtail electricity expenses by about ₹2.25 crores per year. [Initiative: Solar Power Installation]”
“On a consolidated basis, the cash conversion... it will drop down from 180 days to almost 30 days. That is amazing we can save much. [Initiative: Ex-Works Export Strategy]”
What Did Menon Bearings Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹76.9 Cr
YoY +32%QoQ +24%
Why: Growth was driven by healthy demand across key segments, particularly a strong contribution from the OEM segment and a significant ramp-up in exports.
Revenue showed a sharp recovery from the sequential dip in Q2.
EBITDA
₹15.8 Cr
Margin 20.5%
Why: Margin expansion was supported by strong execution, healthy OEM demand, stable export orders, and improved capacity utilization.
EBITDA margins improved significantly from the 15.6% reported in Q2 FY26.
PAT
₹9.3 Cr
YoY +69%QoQ +36.8%
Why: Profitability saw a sharp improvement due to sustained operating leverage and improved efficiency across the business units.
PAT growth outpaced revenue growth, indicating strong operational efficiency.
Other Highlights
• Exports accounted for over 36% of Q3 revenues, up from 33% in the previous quarter.
• OEM segment remains the largest contributor at 48% of Q3 revenues.
• Earnings per share increased to ₹1.65 from ₹0.98 in the same quarter last year.
What Sector Metrics Matter for Menon Bearings Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Export Revenue %
36%
YoY +300 bpsQoQ +300 bps
Why: Driven by new business from Allison Transmission and other US customers.
Capacity Utilisation - Bearings
90%
QoQ +1500 bps
Why: Increased production to meet strong OEM and export demand.
Capacity Utilisation - Alkop
65%
QoQ +500 bps
Why: Stable performance with focus on higher volume alloy products.
Peak Asset Turns
2.5x
Why: Targeted level as the company 'sweats' its recently expanded asset base.
OEM Revenue %
48%
Why: Remains the largest segment despite export growth.
Brakes Monthly Revenue
₹1 Cr
Why: Gradual ramp-up as customer approvals increase.
Annual Solar Cost Savings
₹2.25 Cr
Why: Completion of 3.8 MW rooftop solar installation.
Copper Price
₹1,200
QoQ +26%
Why: Global commodity price volatility.
What Is Menon Bearings Ltd's Management Guidance?
Forward-looking targets from management for FY26-FY27
OPM Guidance
21%
Capex Plan
₹20 Cr
Revenue Outlook
₹290-295 Cr for FY26; ₹350 Cr for FY27
Margin Outlook
REAFFIRMED
Capex Plan
₹20 Cr
Technology, machines, and value addition
Management Tone: BULLISH
Guidance Changes
RAISED
FY26 Revenue: ₹285-290 Cr → ₹290-295 Cr
How Fast Is Menon Bearings Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +32% | +5% | Stable |
| PAT (Net Profit) | +69% | -13% | Stable |
| OPM | 18.8% | +210 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Menon Bearings Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Menon Bearings Ltd's latest quarterly results?
Menon Bearings Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +69.1% (stable)
- Revenue Growth YoY: +31.7%
- Operating Margin: 18.8% (volatile)
Is Menon Bearings Ltd's profit growing or declining?
Menon Bearings Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +69.1% (latest quarter)
- PAT Growth QoQ: +36.2% (sequential)
- 3-Year PAT CAGR: -13.0%
- Trend: Stable — consistent growth pattern
What is Menon Bearings Ltd's revenue growth trend?
Menon Bearings Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +31.7%
- Revenue Growth QoQ: +23.0% (sequential)
- 3-Year Revenue CAGR: +5.3%
How is Menon Bearings Ltd's operating margin trending?
Menon Bearings Ltd's operating margin is volatile.
- Current OPM: 18.8%
- OPM Change YoY: +2.1% basis points
- OPM Change QoQ: +3.1% basis points
What is Menon Bearings Ltd's 3-year profit and revenue CAGR?
Menon Bearings Ltd's long-term compounding rates
- 3-Year Profit CAGR: -13.0%
- 3-Year Revenue CAGR: +5.3%
Is Menon Bearings Ltd's growth accelerating or decelerating?
Menon Bearings Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +67.8% bps
- Sequential Acceleration: +55.7% bps
What is Menon Bearings Ltd's trailing twelve month (TTM) performance?
Menon Bearings Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹31 Cr
- TTM PAT Growth: +29.8% YoY
- TTM Revenue: ₹270 Cr
- TTM Revenue Growth: +18.1% YoY
- TTM Operating Margin: 17.4%
Is Menon Bearings Ltd overvalued or undervalued?
Menon Bearings Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 22.7x
- Price-to-Book: 4.4x
What is Menon Bearings Ltd's current PE ratio?
Menon Bearings Ltd's current PE ratio is 22.7x.
- Current PE: 22.7x
- Market Cap: 705 Cr
- Dividend Yield: 1.59%
How does Menon Bearings Ltd's valuation compare to its history?
Menon Bearings Ltd's current PE is 22.7x.
- Current PE: 22.7x
- Valuation Assessment: Significantly Overvalued
What is Menon Bearings Ltd's price-to-book ratio?
Menon Bearings Ltd's price-to-book ratio is 4.4x.
- Price-to-Book (P/B): 4.4x
- Book Value per Share: ₹28
- Current Price: ₹126
Is Menon Bearings Ltd a fundamentally strong company?
Menon Bearings Ltd is rated Average with a fundamental score of 58/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +31.7% (10% weight)
- PAT Growth YoY: +69.1% (10% weight)
- PAT Growth QoQ: +36.2% (10% weight)
- Margins stable (10% weight)
Is Menon Bearings Ltd debt free?
Menon Bearings Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹43 Cr
What is Menon Bearings Ltd's return on equity (ROE) and ROCE?
Menon Bearings Ltd's return ratios over recent years
- FY2024: ROCE 22.0%
- FY2025: ROCE 20.0%
Is Menon Bearings Ltd's cash flow positive?
Menon Bearings Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹27 Cr
- Free Cash Flow (FCF): ₹1 Cr
- CFO/PAT Ratio: 108% (strong cash conversion)
What is Menon Bearings Ltd's dividend yield?
Menon Bearings Ltd's current dividend yield is 1.59%.
- Dividend Yield: 1.59%
- Current Price: ₹126
Who holds Menon Bearings Ltd shares — promoters, FII, DII?
Menon Bearings Ltd's shareholding pattern (Mar 2026)
- Promoters: 68.4%
- FII (Foreign): 0.2%
- DII (Domestic): 0.0%
- Public: 31.3%
Is promoter holding increasing or decreasing in Menon Bearings Ltd?
Menon Bearings Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 68.4% (Mar 2026)
- Previous Quarter: 68.4% (Dec 2025)
- Change: 0.00% (stable)
How long has Menon Bearings Ltd been outperforming Nifty 500?
Menon Bearings Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Is Menon Bearings Ltd a new momentum entry or an established outperformer?
Menon Bearings Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Menon Bearings Ltd?
Menon Bearings Ltd has 7 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — New orders from Allison Transmission and Federal-Mogul are ramping up.
- Operating Leverage Inflection — Fixed cost absorption as revenue scales across existing facilities.
- Geographical Expansion — Ramp up in US exports and new entry into South African markets.
- New Product Or Brand Launch — Developing PTFE bushes for EVs and electric motor covers for Tata Motors.
What are the key risks in Menon Bearings Ltd?
Menon Bearings Ltd has 3 key risks worth monitoring
- [HIGH] Copper prices increased from ₹900 to ₹1,200 per kilo, creating a significant cos — Tremendous volatility in non-ferrous materials.
- [MEDIUM] US tariffs on bearings were 50%, though recently reduced to 25% for some segment — Trade restrictions and tariffs imposed by the U.S.A.
- [LOW] Transit times to the US have increased from 35 days to 60 days — Global shipping disruptions.
What did Menon Bearings Ltd's management say in the latest earnings call?
In Q3 FY26, Menon Bearings Ltd's management highlighted
- "As I already told you that we'll be reaching between INR285 crores to INR290 crores during this year, '25-'26, considering the order book position. [..."
- "For the entire year, it will be between 19% to 20%. [Previous EBITDA Margin FY26 guidance]"
- "we have completed installation of 3.8 megawatt rooftop solar installations, covering all plants, which will curtail electricity expenses by about ₹2.2..."
What is Menon Bearings Ltd's management guidance for growth?
Menon Bearings Ltd's management has provided the following forward guidance for FY26-FY27
- Revenue outlook: ₹290-295 Cr for FY26; ₹350 Cr for FY27
- OPM guidance: 21%
- Capex plan: ₹20 Cr for Technology, machines, and value addition
- Management tone: bullish
- Milestone: [RAISED] FY26 Revenue: ₹285-290 Cr → ₹290-295 Cr
What sector-specific metrics matter most for Menon Bearings Ltd?
Menon Bearings Ltd's most important sub-sector-specific KPIs from the latest concall
- Export Revenue %: 36% (YoY +300 bps) (QoQ +300 bps) — Driven by new business from Allison Transmission and other US customers.
- Capacity Utilisation - Bearings: 90% (QoQ +1500 bps) — Increased production to meet strong OEM and export demand.
- Capacity Utilisation - Alkop: 65% (QoQ +500 bps) — Stable performance with focus on higher volume alloy products.
- Peak Asset Turns: 2.5x — Targeted level as the company 'sweats' its recently expanded asset base.
- OEM Revenue %: 48% — Remains the largest segment despite export growth.
- Brakes Monthly Revenue: ₹1 Cr — Gradual ramp-up as customer approvals increase.
Is Menon Bearings Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Menon Bearings Ltd may be worth studying
- Earnings growing at +69.1% YoY
- Cash flow is positive — CFO ₹27 Cr
What is the investment thesis for Menon Bearings Ltd?
Menon Bearings Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +31.7% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Copper prices increased from ₹900 to ₹1,200 per kilo, creating a significant cos
What is the future outlook for Menon Bearings Ltd?
Menon Bearings Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Copper prices increased from ₹900 to ₹1,200 per kilo, creating a significant cos
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.