Menon Bearings Limited announced strong financial results for the third quarter and nine months ended December 31, 2025. On a consolidated basis, revenue for Q3 FY26 grew by 32% year-on-year to ₹76.9 crores, with total income also up by 32%. Profitability saw a significant improvement, with profit before tax increasing by 69% to ₹12.4 crores, and profit after tax (PAT) also rising by 69% to ₹9.3 crores. Earnings per share for the quarter stood at ₹1.65, up from ₹0.98 in the previous year.

For the nine-month period, consolidated revenue reached ₹206.6 crores, an 18% increase year-on-year, while PAT grew by 34% to ₹24.5 crores. The company highlighted healthy demand across key segments and continued improvement in profitability. The OEM segment contributed 48% of Q3 revenues, while exports accounted for over 36%. The replacement market contributed around 8%.

Management discussed the progress of its subsidiaries, Menon Alkop and Menon Brakes, with the latter expected to see a gradual ramp-up. The company has completed the installation of 3.8 megawatt rooftop solar, expected to curtail electricity expenses by approximately ₹2.25 crores annually. Future focus remains on optimizing assets, improving return ratios, and driving profitable growth.

During the earnings call, management addressed concerns regarding raw material price volatility, stating that contracts allow for partial price pass-through and the company is focusing on product mix improvement and operational efficiencies to mitigate impacts. They are also in discussions with customers to revise pricing mechanisms to a monthly basis from the current three to six months to manage volatility, especially concerning copper and steel prices.

The company provided an update on its order book, projecting revenues of approximately ₹295 crores for the current year, ₹350 crores for FY27, and ₹425 crores for FY28. Regarding capacity expansion, the company plans to double Alkop's capacity in the next two years. The company also updated on its CapEx plans, having incurred ₹15 crores this year and planning for an additional ₹20 crores over the next two years, focusing on technology and value addition rather than major new capacity.

Management also discussed the company's strategy concerning electrification, noting that its core business in heavy vehicles and off-road segments is less impacted by the shift to EVs. However, through its subsidiary Menon Alkop, the company is developing parts for electric vehicles and has secured business with companies like John Deere, Tesla, Porsche E-Mobility, Eaton Transmission, and TACO Prestolite.

The company anticipates cost savings of around ₹2.25 crores per year from solar installations and an additional ₹8-9 crores per year from process improvements and raw material yield optimization. Further automation initiatives are expected to reduce manpower dependency and improve productivity. The company expects overall margins to be around 20% for the current year, with a target of 21-22% for the next two years. The Brakes segment, currently contributing 3% to revenue, is expected to see its margins improve from 12-13% to 18% next year.