Menon Bearings Q2 profit more than doubled as margin rose

Menon Bearings Limited reported consolidated profit after tax of Rs 14.73 crore in the second quarter of financial year 2027 (Q2FY27), up 117.1% year on year, as revenue from operations rose 58.6% to Rs 100.88 crore and EBITDA margin expanded 488 basis points to 22.00%. Profit grew faster than sales, although the margin eased from the preceding quarter.

How did Menon Bearings perform in Q2FY27?

Menon Bearings recorded revenue from operations of Rs 100.88 crore in Q2FY27, compared with Rs 63.62 crore in Q2FY26, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased to Rs 22.20 crore from Rs 10.89 crore. Profit after tax (PAT) rose to Rs 14.73 crore from Rs 6.79 crore, and earnings per share (EPS) increased to Rs 2.63 from Rs 1.21.

The year-on-year comparison shows EBITDA grew 103.8%, faster than the 58.6% increase in revenue, while PAT grew 117.1%. EBITDA margin rose to 22.00% from 17.12%, an improvement of 488 basis points, and PAT margin increased 394 basis points to 14.60% from 10.67%. A basis point is one-hundredth of a percentage point.

Why did Menon Bearings’ profit increase faster than revenue?

Menon Bearings’ income statement shows EBITDA and PAT rose faster than revenue in Q2FY27. Operating expenses increased 75.1% year on year to Rs 65.28 crore, employee cost rose 19.0% to Rs 13.40 crore, and EBITDA increased by Rs 11.31 crore from Q2FY26 as revenue from operations increased by Rs 37.26 crore.

Below EBITDA, other income declined 10.2% to Rs 1.14 crore and depreciation rose 21.4% to Rs 2.84 crore, yet earnings before interest and tax (EBIT) increased 108.6% to Rs 20.50 crore. Finance cost increased 5.9% to Rs 1.26 crore, while tax rose 143.2% to Rs 4.51 crore. Even after those charges, PAT added Rs 7.94 crore over Q2FY26, producing the 117.1% increase.

Did Menon Bearings sustain its margin improvement sequentially?

Menon Bearings did not sustain the first-quarter EBITDA margin level in Q2FY27, despite higher quarterly revenue. Revenue from operations rose Rs 6.84 crore sequentially from Rs 94.04 crore in the first quarter of financial year 2027 (Q1FY27) to Rs 100.88 crore in Q2FY27, but EBITDA declined Rs 0.18 crore from Rs 22.38 crore to Rs 22.20 crore.

As a result, EBITDA margin was 22.00% in Q2FY27, down 180 basis points from 23.80% in Q1FY27, although it remained 488 basis points above Q2FY26. PAT margin similarly declined 40 basis points quarter on quarter from 15.00% to 14.60%, while remaining 394 basis points above the 10.67% reported a year earlier. PAT nevertheless rose sequentially by Rs 0.62 crore to Rs 14.73 crore.

Which products and channels drove Menon Bearings’ Q2FY27 revenue?

Menon Bearings’ Bimetal division reported gross value of Rs 70.82 crore in Q2FY27, up from Rs 43.58 crore in Q2FY26, making it the largest reported product line. Alkop reported Rs 24.11 crore versus Rs 17.19 crore, while Braking Systems reported Rs 3.41 crore versus Rs 1.74 crore. The presentation notes that divisional figures are gross and are not adjusted for inter-segment sales.

Bimetal represented 72.02% of consolidated product-wise revenue in Q2FY27, up from 69.71% a year earlier, whereas Alkop’s share fell to 24.52% from 27.51%. Braking System’s share increased to 3.47% from 2.78%. Original equipment manufacturers (OEMs) accounted for 52.26% of channel-wise revenue, exports for 33.92%, replacement business for 7.59%, and others for 6.23%.

What does Menon Bearings’ first-half performance show?

Menon Bearings generated Rs 194.93 crore of revenue from operations in the first half of financial year 2027 (H1FY27), compared with Rs 132.21 crore in H1FY26, a 47.4% increase. EBITDA rose 77.0% to Rs 44.58 crore, and PAT rose 89.5% to Rs 28.85 crore from Rs 15.22 crore. First-half EPS increased 74.3% to Rs 5.15.

The first-half margin comparison also shows an improvement over H1FY26. EBITDA margin increased 382 basis points to 22.87% from 19.05%, while PAT margin rose 329 basis points to 14.80% from 11.51%. Bimetal generated Rs 137.88 crore of gross divisional value in H1FY27, against Rs 91.34 crore a year earlier, compared with Alkop at Rs 45.92 crore and Braking Systems at Rs 6.32 crore.

What expansion plans has Menon Bearings disclosed?

Menon Bearings has outlined capacity and automation initiatives alongside its Q2FY27 results. Its Bi-Metal division’s annualised capacity until H1FY27 was stated at 600 lakh units, up from 580 lakh units in FY26, while Brakes capacity was 46 lakh pieces, up from 30 lakh pieces. Alkop capacity was listed at 1,440 metric tonnes in FY27, unchanged from FY26.

For the next two years, the presentation lists additional planned capital expenditure of Rs 25 crore for Bi-Metals, Rs 7 crore for Alkop and Rs 2.50 crore for Brakes. It also identifies robotic-cell and inspection projects with targets from November 2026 through April 2027, including a dual computer numerical control robotic cell for Honeywell STT caps and a dual vertical machining centre robotic cell for JD ISG parts. The presentation states that Alkop’s 38 developed and tested parts for a major customer are expected to generate Rs 50 crore to Rs 60 crore annually within two years, subject to anticipated domestic and export orders.

Conclusion

Menon Bearings’ Q2FY27 results show that its 58.6% revenue expansion was accompanied by a larger 103.8% rise in EBITDA and a 117.1% increase in PAT. The resulting 488-basis-point year-on-year improvement in EBITDA margin to 22.00% distinguishes the quarter from one driven solely by higher sales, while the Q1FY27 comparison shows margins moderated sequentially.

The next disclosed markers are the planned capacity spending over the next two years and automation milestones scheduled between November 2026 and April 2027. Menon Bearings also disclosed an expectation for Rs 50 crore to Rs 60 crore of annual Alkop business within two years and said dynamometer installation for railway approvals and OEM orders in Brakes was underway.