This article first appeared on GuruFocus .
-
Total Revenue Q2 FY26:INR217 crores
-
Total Revenue H1 FY26:INR427 crores
-
EBITDA Q2 FY26:INR36 crores
-
EBITDA H1 FY26:INR70 crores
-
EBITDA Margin Q2 FY26:16.4%
-
EBITDA Margin H1 FY26:16.5%
-
PAT Q2 FY26:INR23 crores
-
PAT H1 FY26:INR45 crores
-
Gasket Division Revenue Q2 FY26:INR143 crores
-
Gasket Division Revenue H1 FY26:INR278 crores
-
Forging Division Revenue Q2 FY26:INR76 crores
-
Forging Division Revenue H1 FY26:INR151 crores
-
Marelli Chassis Systems Revenue Q2 FY26:INR79 crores
-
Marelli Chassis Systems Revenue H1 FY26:INR152 crores
-
Marugo Rubber Revenue Q2 FY26:INR35 crores
-
Marugo Rubber Revenue H1 FY26:INR65 crores
-
Exports Contribution to Total Revenue:26%
-
Warning! GuruFocus has detected 4 Warning Sign with BOM:505160.
-
Is BOM:505160 fairly valued? Test your thesis with our free DCF calculator.
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Talbros Automotive Components Ltd ( BOM:505160 ) announced a strategic joint venture with Lohum Cleantech Private Limited, focusing on sustainable products like recovered carbon black and devulcanized rubber.
-
The company reported a robust EBITDA margin of 16.5% for H1 FY26, attributed to operational excellence and cost-saving measures.
-
Exports contributed significantly to the company's revenue, accounting for 26% of total revenue, with strong presence in the UK, Europe, and the US.
-
The Indian automobile industry recorded a healthy growth of 9.5% in Q2 FY26, supporting Talbros' performance with increased domestic demand and robust exports.
-
Talbros is optimistic about future growth, with strategic focus on business diversification, strengthening OEM relationships, and exploring new product lines and technologies.
Negative Points
-
The company faced a one-time business loss of about INR10 crores due to a cyberattack on a key European client, affecting operations temporarily.
-
Revenue for H1 FY26 was partly impacted by muted momentum across the automotive industry, with a flat performance in the Gasket and Forging divisions.
-
The European market experienced muted demand, impacting export growth, although recovery is expected in the coming months.
-
Employee costs increased, leading to a marginally lower EBITDA margin compared to the previous year.
-
The company faced challenges in the commercial vehicle segment domestically, with muted demand affecting overall performance.
Q & A Highlights
Q: Can you provide insights into new customers or contracts in the Gasket or Forging business, and guidance for Marelli and Marugo Rubber businesses for FY27? A: We have added new customers like Kia, with business expected to start in January 2026, valued at INR13-15 crore annually. Other new contracts include a Russian demand business and Tata Motors heat shield, each around INR10 crore annually. For FY27, we expect Marelli to reach INR500 crore and Marugo Rubber INR170 crore.
Q: What is the expected steady-state EBITDA margin, and how is the export business performing? A: We anticipate maintaining an EBITDA margin of around 16.5%. Exports currently contribute 26% of total revenue, with the UK accounting for 54%. We expect exports to improve, potentially increasing by 1-1.5% next year, aiming for 35% by FY26.
Q: What competitive advantage does the JV with Lohum Cleantech offer compared to existing rCB or rubber recycling players in India? A: Lohum is an R&D-led company with significant expertise, offering recovered carbon black with only 5% ash content, close to virgin material, and 25-30% cheaper. The devulcanization process is cleaner and offers high substitutional percentage, generating EPR credits.
Q: What are the revenue and margin expectations for the Lohum JV, and how do you see the European business ramping up? A: The Lohum JV is expected to generate INR500-600 crore in revenue over five years, with EBITDA margins of 15-18%. The European business, affected by JLR's cyberattack, is recovering and should see better figures in the next six months.
Q: Are there plans for more growth opportunities through new joint ventures or collaborations? A: Yes, we are exploring new opportunities and are in discussions with partners in Japan and Korea. We will focus on ramping up current initiatives before announcing new ventures.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
