Menon Bearings ltd Q1 FY26: Tiny Bearings, Giant Torque – Is This Kolhapur’s Quiet Compounder?

Menon Bearings ltd Q1 FY26: Tiny Bearings, Giant Torque – Is This Kolhapur’s Quiet Compounder?

1. At a Glance

This ₹700 Cr small-cap makes thrust washers and bushings—basically the stuff you ignore in an engine until it fails. But with Q1 PAT up 37%, OPM recovering to 19.2%, and a fat export order from Allison Transmission USA, this baby’s revving louder than you think.


2. Introduction with Hook

Imagine a wedding where no one notices the caterer—until the food explodes with flavor. That’s Menon Bearings in the auto ecosystem. Hidden, crucial, and now getting international RSVP invites.

  • FY25 PAT: ₹25 Cr, steady as a piston
  • Q1 FY26 EPS: ₹1.50 (up 36%)

Not a unicorn. More like a trusty tractor that refuses to die.


3. Business Model (WTF Do They Even Do?)

Menon Bearings makes:

  • Engine Bearings
  • Bushes
  • Thrust Washers
  • Aluminium Die Cast Parts

Basically, if it rotates and doesn’t explode, these guys probably supplied something. They sell to auto OEMs, heavy-duty diesel engine makers, and now even export to the US.

Think of them as the orthopedic surgeon of engines—quiet, precise, essential.


4. Financials Overview

Q1 FY26 Snapshot:

MetricValue (₹ Cr)YoY Growth
Revenue67.21+21%
Operating Profit12.92+36%
Net Profit8.43+37%
OPM19.2%Up 72 bps
EPS₹1.50+36%

Margins aren’t jaw-dropping, but they’re consistent. Like a Maruti 800—may not win races, but always gets you there.


5. Valuation

MetricValue
CMP₹128
P/E28.8x
Book Value₹28.3
P/B4.53x
ROE16.4%

Fair Value Range:

  • P/E (20–25x FY26E EPS ₹6): ₹120 – ₹150
  • P/B (3.5–4x Book Value): ₹99 – ₹113

So it’s not screaming cheap, but if Q2+Q3 deliver, it could coast into higher gears.


6. What’s Cooking – News, Triggers, Drama

  • USD 3.73M annual order from Allison Transmission (USA)
  • 75 lakh parts/year = recurring revenue
  • Commercial production started at new facility (Q2 impact ahead)
  • Aluminium division spun off to a subsidiary via slump sale = possible unlocking of value
  • Dividend yield: 1.79% and healthy payout (~45%)

Basically: zero masala drama, all boring execution. Aka, value investor porn.


7. Balance Sheet

ItemMar 2025 (₹ Cr)
Equity Capital6
Reserves153
Borrowings43
Total Liabilities231
Net Worth₹159 Cr
Debt/Equity0.27x

Not debt-free, but the balance sheet looks like it just had a protein shake. No red flags, just consistent growth.


8. Cash Flow – Sab Number Game Hai

YearOps (₹ Cr)Invest (₹ Cr)Finance (₹ Cr)Net Cash
FY23+50-23-23+4
FY24+28-19+4+13
FY25+27-26-7-6

Capex cycle ongoing (new facility), but operations funding everything. This isn’t a Ponzi scheme—this is the real economy.


9. Ratios – Sexy or Stressy?

RatioValue
ROE16.4%
ROCE19.8%
OPM19.2%
P/E28.8x
D/E0.27x

Not “sexy” by CNBC standards. But if you like low-beta, high-efficiency compounding, this is your Tinder match.


10. P&L Breakdown – Show Me the Money

YearRevenue (₹ Cr)Profit (₹ Cr)EPS (₹)
FY23219335.82
FY24213244.35
FY25239254.45
TTM249274.86

Flat FY24, but FY25 shows recovery. If export orders scale, FY26 could see EPS of ₹6+


11. Peer Comparison

CompanyRev (₹ Cr)PAT (₹ Cr)P/E
Bosch18,0872,01255.3
Schaeffler8,3371,01563.0
Uno Minda16,77593466.7
Bharat Forge15,12392362.2
Menon Bearings2492728.8

Smallest on the list. But the only one with sub-30 P/E and consistent 16% ROE. The nerd in the group project who actually did the work.


12. Miscellaneous – Shareholding, Promoters

CategoryMar ’23Jun ’25
Promoters71.25%68.44%
FIIs1.64%0.45%
Public27.10%31.11%
  • Promoter holding dipped a little, but still dominant
  • FIIs ghosted (again), but retail is stepping in
  • Total shareholders rising = discovery in progress

13. EduInvesting Verdict™

Menon Bearings is like the disciplined middle child—never makes headlines, never misses dinner, and always scores 90+. Recent export wins, solid margins, and a new plant in action make this a quiet compounder in the auto universe.

“You won’t hear it roar, but you’ll thank it for keeping the engine alive.”


Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Menon Bearings Ltd, Auto Components, Bearings, EduInvesting Premium, Smallcap, Exports, Kolhapur Compounding

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