Menon Bearings maps Rs 34.5 crore capex and 37% exports

Menon Bearings plans Rs 34.5 crore of additional capital expenditure over the next two years, led by Rs 25 crore for bi-metal products, while targeting exports to reach 37% of revenue by FY27. The roadmap also includes automation milestones from November 2026 to April 2027, Alkop machining investment and electric-vehicle components.

How much capex is Menon Bearings planning?

Menon Bearings plans Rs 34.5 crore of additional capex over the next two years, comprising Rs 25 crore for bi-metal products, Rs 7 crore for Alkop and Rs 2.50 crore for brakes. The company says it had fully deployed Rs 26.91 crore in FY26 across those divisions, with Alkop accounting for Rs 19.59 crore of that earlier investment.

The proposed allocation is concentrated in bi-metal products, which represented 72.52% of consolidated revenue in H1FY27, compared with 70.41% in H1FY26. Alkop’s revenue share declined to 24.15% from 26.85%, while brakes increased to 3.32% from 2.74%, showing that the planned investment mix differs from the FY26 spending pattern.

For Alkop, Menon Bearings says the Rs 7 crore plan is intended to increase machining capacity in line with targeted growth. Commercial production of thrust washers is under way at a new manufacturing plant, and the company says it has ample land for future expansion into newer product segments.

How will Menon Bearings increase capacity and productivity?

Menon Bearings plans to increase productivity through four disclosed automation projects with targets between November 2026 and April 2027. The projects include a dual-computer numerical control, or CNC, robotic cell for Honeywell STT caps, two dual-vertical machining centre, or VMC, robotic cells, and vision-inspection and powder-coating automation.

The AMS dual-CNC cell for Honeywell STT caps was under installation with a November 2026 target. A Brother dual-VMC cell for JD ISG parts was in execution for January 2027, while an AMS dual-VMC cell for Honeywell STT housings was in simulation and design for March 2027. Vision inspection and powder-coating automation for JD ISG parts and Honeywell caps was in supplier design exploration for April 2027.

Menon Bearings identifies reduced manpower per machine, lower idle time between cycles, repeatable processes and higher equipment utilisation as the mechanisms for the programme. Bi-metal capacity increased to 600 lakh units in H1FY27 on an annualised basis from 580 lakh units in FY26, while brake capacity increased to 46 lakh pieces from 30 lakh pieces. Alkop capacity was unchanged at 1,440 metric tonnes in FY25, FY26 and FY27.

The company also lists a 3,870 kilowatt-peak solar power system with estimated output of about 53,67,828 kilowatt-hours a year. Energy-efficient motors are estimated to save 1,800 to 2,000 kilowatt-hours annually, alongside LED lighting, electric holding furnaces and boilers with pre-heat chambers; Menon Bearings states nil capital investment for its energy-conservation equipment.

What is Menon Bearings doing in EVs and new products?

Menon Bearings has entered the electric-vehicle, or EV, segment through Alkop components supplied to Porsche via Eaton, and it targets EV products to account for 8% to 10% of Alkop by FY27. The presentation identifies Porsche as a German luxury and sports-car maker and Eaton as an Ireland-based supplier, but does not disclose programme value or component volumes.

Alkop has developed and tested 38 parts for a major customer, and Menon Bearings anticipates substantial orders in domestic and export markets. The company says these parts are expected to generate Rs 50 crore to Rs 60 crore annually within two years. Its Alkop operations include melting, pressure and gravity die casting, machining and powder coating, with handling capacity for components of up to 12 kilograms.

In bi-metal products, Menon Bearings reports increasing domestic and export orders for larger-diameter bearings, bushes and washers. It has received aftermarket samples from a prominent US company and is targeting high-volume, high-value parts. Components developed or under development for several clients had received 50% approval, with production commencing in Q1FY26 and estimated annual revenue potential of about Rs 55 crore.

The brakes business is pursuing railway approvals and original equipment manufacturer, or OEM, orders through a dynamometer installation. Menon Bearings expects a significant turnover increase in FY26-27 after dynamometer commissioning, while registration of brake products with Railways remains in progress.

Can Menon Bearings reach its 37% export target?

Menon Bearings targets exports at 37% of revenue by FY27, compared with 33.62% in H1FY27 and 32.22% in H1FY26. Exports represented 33.92% of revenue in Q2FY27, up from 33.16% in Q1FY27, so the FY27 target is 3.38 percentage points above the H1FY27 share.

The export mix changed differently across divisions in H1FY27. Bi-metal exports were 30% of divisional revenue, down from 31% in H1FY26, while Alkop exports rose to 46% from 35%. Brake exports declined to 16% from 45%, making Alkop the division with the largest reported improvement in export share over the first half.

Menon Bearings expects US exports in its Menon Bearing and Menon Alkop operations to increase significantly, with annual revenue expected at around Rs 30 crore. It also plans to enter Africa through a large distributor network. The company reports exports to more than 24 countries, while its H1FY27 channel data show exports at 33.62% of consolidated revenue.

The company’s operating base expanded in H1FY27, although it provides no consolidated revenue forecast for FY27. Revenue from operations rose 47.4% year on year to Rs 194.93 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 77.0% to Rs 44.58 crore. EBITDA margin increased to 22.87% from 19.05%, and profit after tax rose 89.5% to Rs 28.85 crore.

Conclusion

Menon Bearings’ plan combines Rs 34.5 crore of additional capex with capacity additions, automation, EV components and export expansion. Bi-metal products receive the largest planned allocation at Rs 25 crore, brakes have reached 46 lakh pieces of annualised H1FY27 capacity, and Alkop is the vehicle for the company’s stated EV and machining plans.

The disclosed milestones to watch are automation targets from November 2026 through April 2027, brake dynamometer commissioning, railway product registration and the Rs 7 crore Alkop machining expansion. Menon Bearings also targets EV products at 8% to 10% of Alkop and exports at 37% of revenue by FY27, with US and Africa initiatives intended to support that objective.