TALBROAUTO Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹238 Cr
verified against source
Revenue YoY
15%
reported change
EBITDA
₹43 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Talbros delivered a record Q1 FY27 with revenue of Rs 242 crore (up 15% YoY) and EBITDA of Rs 43 crore at 17.6% margin, despite margin pressure from elevated steel and aluminium costs. The gasket division drove growth at 21% YoY (Rs 160.64 crore), aided by data center backup generator demand (~30-40 crore annually). The forging division underperformed at 4% growth due to European market weakness, manpower shortages, and the MELI contract loss (~30-40 crore). JV Rail Chassis Systems posted 43% growth (Rs 105 crore). Management targets 18-20% revenue growth for FY27 with margins around 17-17.5%, and expects forging to recover to 15-20% growth by year-end with 340-350 crore run-rate. EV contribution stands at 3.27% with 5% targeted in 2 years. Key risks include unresolved Maruti Gujarat plant discussions, MELI bankruptcy proceedings, and potential order timing delays in forging.
Colored figures show movement against the previous available record.
Guidance to track
- Management maintained full-year guidance for group revenue growth of 18-20% YoY, building on record Q1 performance.
- Margins expected in 17-17.5% range as management works through inflationary pressures with OEM price increases in coming quarters.
- Gasket division expected to grow ~17% for full year after 21% growth in Q1; helped by data center backup generator demand and new customer additions.
- Currently at ~25% exports; targeting to increase to 35% by FY28 through new OEM relationships (Volvo, JLR plastic components, Cummins) and existing customer expansion.
Risks flagged
- Management expects better clarity by end of September as discussions are in middle of court proceedings. Strategic plant in Gujarat could significantly expand chassis business but timing remains uncertain.
- The MELI contract (30-40 crore annually) was lost due to TIFF issues. MELI is now revisiting but no definitive timeline for recovery, creating uncertainty in forging growth trajectory.
- Forging division grew only 4% YoY due to slow European car markets (inflation pressures) and Chinese market slowdown affecting JCB/Dana orders. Recovery expected in H2 but dependent on external demand.
- Analyst raised concern about OEMs reducing EV guidance. Management responded with 5% EV contribution target but acknowledged industry-wide EV guidance moderation could affect order flow.
Key quotes
- Margins during the quarter witness temporary pressure on account of elevated commodity prices particularly steel and aluminium as well as other inflation costs such as labor increases in some states. But we're very happy we are very positive that we will get these increases from the OEMs in the coming quarters.
- MELI is just opened up his doors with Stellantis so new customer from the chassis business line as well as the forging business line. We're working with Jaguar Land Rover on new components for the first time which are plastic components for the electric vehicles. That's an old customer with a new product line that we're working with.
- First quarter it is around 3.27% of this year. We expect in next two years it should cross 5%.
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