Menon Bearings: Navigating Growth and Sustainability in Q2 & H1 FY26

Menon Bearings Limited, a prominent player in India's engine bearings industry, has reported a resilient performance for the second quarter and first half of the financial year 2026. The company, operating on a consolidated basis, posted net sales of 129.72 crore for H1 FY26, marking a 10.80% year-on-year increase from 117.08 crore in H1 FY25. Profit After Tax (PAT) also saw a significant jump of 18.30%, reaching 15.21 crore compared to 12.86 crore in the previous year. This growth underscores the company's ability to maintain steady demand across domestic and export markets, supported by strong operational discipline.

The Bi-Metal division continued to be the primary revenue driver, contributing 91.34 crore (70.41%) to H1 FY26 net sales. The Alkop division followed with 34.83 crore (26.85%), while Braking Systems accounted for 3.55 crore (2.74%). Management highlighted that the Bi-Metal segment benefited from increasing demand for large diameter bearings and new product development. The Alkop division experienced healthy growth driven by export orders, and the Brakes division maintained stability through aftermarket and OEM demand. Despite a slight dip in EBITDA margins in Q2 FY26 due to raw material price increases, the company remains confident in achieving its full-year margin guidance.

Strategic Investments and Capacity Expansion

Menon Bearings is actively investing in capacity expansion and sustainability initiatives to fuel future growth. The Bi-Metal division's capacity is projected to increase by approximately 9% to 530 lakh units by FY26, with a CAPEX of 19.55 crore fully deployed in FY25. The Alkop division is set for a significant boost, aiming to double its capacity from 1,440 to 2,880 metric tonnes over the next two years, supported by a 22.50 crore CAPEX plan. The Brakes division also anticipates a 33% increase in capacity to 24 lakh pieces by FY27, with 13 crore allocated for CAPEX.

Beyond capacity, the company is making strategic investments in sustainability. A 570 KW solar power system, generating around 800,000 kWh/year, is expected to save approximately 2 crore annually in electricity costs and reduce carbon emissions. This initiative also helps secure carbon footprint approvals, which are increasingly vital for global customers. Other investments include energy-efficient motors, LED lighting, electric holding furnaces, and boilers with pre-heat chambers, all aimed at reducing operational costs and enhancing environmental performance.

Market Diversification and Future Outlook

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