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    Talbros Automotive Components Q1 FY27 earnings call

    TALBROAUTO
    Automobile and Auto Components·11 Aug 2026
    Management Summary

    Talbros Automotive Components Limited reported a strong Q1 FY27 with total income growing 15% year-on-year to ₹242 crores and PAT increasing 35% to ₹30 crores. The Gasket division and joint ventures showed robust growth, driven by increased heat shield exposure and strong customer demand. However, EBITDA margins faced temporary pressure from elevated commodity prices and labor costs, while the Forging division experienced slower growth due to European market conditions and execution delays, though management expects a recovery.

    Highlights

    5

    • Total income of ₹242 crores, up 15% YoY, marking a record quarter.

    • PAT increased 35% YoY to ₹30 crores, demonstrating strong profitability.

    • Gasket division revenue grew 21% YoY to ₹164 crores, with EBITDA up 32% YoY to ₹29 crores, driven by increased heat shield exposure.

    • Marelli Chassis Systems JV revenue surged 43% YoY to ₹105 crores, and Talbros Marugo JV revenue grew 31% YoY to ₹40 crores, indicating robust JV performance.

    • EV sales across all divisions reached ₹12.5 crores in Q1 FY27, growing 39% YoY and contributing 3.27% to total revenue.

    Concerns

    3

    • EBITDA margin at 17.6% faced temporary pressure due to elevated commodity prices (steel, aluminum) and labor cost increases.

    • Forging division growth was only 4% YoY to ₹78 crores in Q1 FY27, impacted by a slowdown in European car markets and execution delays.

    • Marelli JV margins experienced a slight dip due to a mix of other income and manpower-related expenditures.

    Key financials

    Single quarter

    07 metrics
    1. 01Total Income₹242 Cr+14.7%YoY
    2. 02EBITDA₹43 Cr
    3. 03EBITDA Margin17.6%
    4. 04PAT₹30 Cr+35%YoY
    5. 05Exports Contribution25%

    Segment breakdown

    • Gasket Division₹164 Cr42.4%
    • Forging Division₹78 Cr20.2%
    • Marelli Chassis Systems JV₹105 Cr27.1%
    • Talbros Marugo JV₹40 Cr10.3%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 500 crores

    as of 2026-06-30

    quantified

    Execution

    for 5 years

    "The forging division has a significant order book of INR500 crores executable over 5 years, and new orders for EV rubber components from JLR (INR15-20 crores p.a.) are expected to start supply next calendar year."

    Source:
    Q&A

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹103 crores

    Guidance & targets

    15
    CategoryTargetPriority
    Revenue
    Group Revenue Growth
    18% to 20%
    		High
    Revenue
    Gasket Division Growth
    about 17%
    		High
    Revenue
    Forging Division Growth
    15% to 20%
    		High
    Revenue
    Gasket Division Revenue
    INR850 crores to INR900 crores
    		High
    Revenue
    Forging Division Revenue
    INR650 crores to INR700 crores
    		High
    Revenue
    EV Contribution to Total Revenue
    5%
    		Medium
    Revenue
    Gasket Business Revenue
    INR900 crores
    		High
    Revenue
    Forging Business Revenue
    INR600 crores
    		High
    Revenue
    Fastest Growing Segment
    Marelli (30-40%), Forging (20%+), TMR (18-20%), Gasket (16-17%)
    		High
    Revenue
    Data Center Revenue (Annual)
    INR30 crores to INR40 crores
    		Medium
    Revenue
    Data Center Revenue (Long-term)
    INR100 crores
    		Medium
    Margin
    Group EBITDA Margin
    17% to 17.5%
    		High
    Margin
    Sustainable EBITDA Margin
    Around 17%
    		High
    Exports
    Exports Contribution
    35%
    		High
    Orders
    Plastic Components Orders
    INR25 crores
    		High

    What to watch in Q2 FY27

    5

    Marelli Stake Sale Update

    next quarter
    CurrentIn court proceedings, picture expected by Sep 30
    TargetClearer picture on stake sale

    Why it matters

    Resolution of the Marelli stake sale could have significant implications for the JV's future and strategic direction.

    So, we will have a better picture for you around end of September. You know our strategy. So, I think they are in the middle of court proceedings. So, by 30th September, we'll have a better picture.

    Risks & concerns

    3
    RiskSeverity

    Temporary Margin Pressure from Commodity and Labor Costs

    EBITDA margins were temporarily impacted by elevated steel and aluminum prices, and labor cost increases in some states, though management expects to recover these from OEMs. — Management acknowledged

    medium

    Slowdown in European Car Markets

    The European car markets are currently slow due to inflation, affecting the forging division's performance and order schedules from customers like BMW and GKN. — Management acknowledged

    medium

    Operational Challenges in Forging Division

    The forging division experienced a slowdown due to delays in order execution, reduced schedules from key customers, manpower issues, and rising LPG prices, impacting Q1 growth. — Management acknowledged

    medium

    Q&A highlights

    6

    “BMW giving us more business, existing customer. Volvo as a potential new customer with the gasket business, Marelli has just opened up its doors with Stellantis. So new customer from the chassis business line as well as the forging business line. We are working with Jaguar Land Rover on new components for the first time, which are plastic components for electric vehicles.”

    Revealed specific new OEM engagements and product lines (plastic components for EVs, Stellantis via Marelli) as part of global supply chain shifts.

    asked by Dipen Shah

    2 min read5 chapters

    Detailed Narrative

    01

    Industry Overview and Opportunities

    The Indian automotive industry delivered a healthy performance in Q1 FY27, with passenger vehicle sales growing 26% YoY to 1.27 million units, and 2-wheeler sales up 20% YoY to 5.63 million units. Commercial vehicles also saw a 15% YoY growth to 2.83 lakh units. Electric mobility continued its strong adoption, with EV passenger vehicles growing 87% YoY and electric 2-wheelers up 68% YoY. Management highlighted that global supply chain realignment and diversification from China are creating significant export opportunities for Indian auto component manufacturers.

    02

    Q1 FY27 Financial Performance Highlights

    Talbros Automotive Components Limited achieved a record Q1 FY27, with total income reaching ₹242 crores, a 15% increase year-on-year. Profit After Tax (PAT) grew by 35% YoY to ₹30 crores. EBITDA for the quarter stood at ₹43 crores, resulting in a margin of 17.6%. Management noted that margins faced temporary pressure📎 due to elevated commodity prices, particularly steel and aluminum, and labor cost increases, but expressed confidence in recovering these costs from OEMs in subsequent quarters.

    03

    Segmental Performance and Joint Ventures

    The Gasket and Heat Shield division remained the largest contributor, generating ₹164 crores in revenue, a 21% YoY increase, with EBITDA growing 32% YoY to ₹29 crores, driven by increased heat shield exposure with Hyundai and Kia. The Forging division's revenue was ₹78 crores, showing a 4% YoY growth, impacted by a slowdown in European markets. Joint ventures performed strongly, with Marelli Chassis Systems JV revenue up 43% YoY to ₹105 crores, and Talbros Marugo JV revenue up 31% YoY to ₹40 crores, with EBITDA growing 57% YoY to ₹6 crores.

    04

    New Growth Verticals and Export Strategy

    Talbros is expanding into new growth areas, including supplying gasket components for data centers, which currently contribute about 5% of gasket business and are projected to reach ₹100 crores annually in 2-3 years from the current ₹30-40 crores. EV components sales reached ₹12.5 crores in Q1 FY27, contributing 3.27% to total revenue, with a target to reach 5% in the next two years. Exports are a key growth pillar, contributing almost 25% of revenue, with a target to increase to 35% by FY28, supported by new orders from JLR for EV rubber components (₹15-20 crores p.a.) and Marelli for Stellantis.

    05

    Capital Expenditure and Future Outlook

    The company plans a capital expenditure of ₹103 crores for FY27, allocated across gaskets, forgings, and heat shields to meet OEM demands. For FY27, management guided for a group revenue growth of 18-20% and EBITDA margins in the range of 17-17.5%. Long-term revenue targets include ₹850-900 crores for the gasket division and ₹650-700 crores for the forging division in the next 3-4 years, with specific targets of ₹900 crores and ₹600 crores respectively by FY30.

    This is an AI-generated summary of a publicly available earnings call transcript.