CMP: ₹284.95 | Hit 5% Lower Circuit | FY25 PAT: ₹94 Cr | EBITDA Margin: Highest Ever at 17.4%
🔧 At a Glance
Talbros Automotive just put the pedal to the metal in FY25 with a 7% revenue rise and a 16% jump in EBITDA, despite tough auto market conditions and cooling CV demand. PAT rose 14%, and margins hit a record 17.4%, but what got the market zooming was probably this: ₹2,400+ Cr of new orders booked in the last 2 years, most of which are still in the early execution phase.
The cherry on top? Orders from EV OEMs ✅, strong joint ventures ✅, and a disciplined, diversified portfolio ✅. Investors smelled the torque—and slammed the 5% upper circuit.
🏭 About the Company
| Detail | Info |
|---|---|
| Name | Talbros Automotive Components Ltd |
| Founded | 1956 |
| HQ | Faridabad, Haryana |
| Core Segments | Gaskets, Heat Shields, Forgings, Suspension, AV Products, Hoses |
| Joint Ventures | Marelli Talbros Chassis Systems (MTCS), Talbros Marugo Rubber (TMR) |
| Manufacturing Units | 11 Plants (Haryana, Uttarakhand, Maharashtra) |
| Customers | Tata, Hero, Maruti, Mahindra, BMW, Bajaj, JCB, Eicher, John Deere, Ashok Leyland, Daimler, Escorts, Honda, Force, Volvo |
| EV Push | Active — Orders from domestic & global EV OEMs |
| Market Presence | OEMs (62%), Exports (27%), Aftermarket (3%) |
💰 FY25 Financial Highlights
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue (Ops) | ₹845 Cr | ₹791 Cr | +7% |
| EBITDA (Incl. other inc.) | ₹147 Cr | ₹127 Cr | +16% |
| EBITDA Margin | 17.4% | 16.1% | +130 bps |
| Profit Before Tax (PBT) | ₹119 Cr | — | +15% |
| Profit After Tax (PAT) | ₹94 Cr | ₹83 Cr | +14% |
| PAT Margin | 11.2% | 10.5% | +70 bps |
Exports contributed 27% of total income.
Highest-ever EBITDA margin in the company’s history.
⚙️ Segment-wise Revenue & EBITDA (FY25)
| Business Segment | Revenue (₹ Cr) | Growth | EBITDA (₹ Cr) | Growth |
|---|---|---|---|---|
| Gasket & Heat Shield | 556.3 | +8% | 96.2 | +18% |
| Forgings | 289.6 | +4% | 52.3 | +11% |
| MTCS (JV) | 142.5 | +10% | 22.9 | +28% |
| TMR (JV) | 65.0 | +6% | 8.3 | +77% |
🧾 Q4 FY25 Snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue (Ops) | ₹210.9 Cr | ₹207.5 Cr | +2% |
| EBITDA | ₹39.8 Cr | ₹35.5 Cr | +12% |
| PAT | ₹26.6 Cr | ₹22.7 Cr | +17% |
| EBITDA Margin | 18.9% | 17.1% | +180 bps |
| PAT Margin | 12.6% | 11.0% | +160 bps |
🚚 Revenue Mix Breakdown (FY25)
🚗 By Vehicle Type (Domestic JV Share)
| Vehicle Type | FY25 Share |
|---|---|
| 2 & 3 Wheelers | 17% |
| Passenger Vehicles | 34% |
| HCV + LCV | 23% |
| Agri/Off Loaders | 12% |
| Others | 14% |
🌏 By Market Type
| Market Segment | FY25 Share | FY24 Share |
|---|---|---|
| OEM | 62% | 63% |
| Exports | 27% | 25% |
| Aftermarket | 3% | 4% |
| Others | 8% | 8% |
⚡ EV Gameplan & Order Book
- Secured EV contracts from both Indian and international OEMs.
- Talbros is supplying gaskets + lightweight components for EV platforms.
- ₹2,400+ Cr order wins over FY24 & FY25, to be executed across FY26–FY28.
- Execution of these orders is expected to boost exports, margins, and scale.
🧠 EduInvesting Take
“Talbros isn’t just sealing engines anymore. They’re sealing future growth.”
- The most underrated player in the Indian auto ancillaries space.
- Exports are scaling, and JV margins are soaring — especially TMR with 77% EBITDA jump.
- EBITDA at ₹147 Cr and margins at 17.4% are both historic highs — and likely sustainable.
- Order wins show OEM trust. Execution over next 2 years = hockey-stick curve coming?
- EV exposure + diversified portfolio + strong balance sheet = great hedge in auto space.
🧮 Forward Fair Value (Edu Estimate)
| Metric | Value |
|---|---|
| EPS (TTM) | Approx. ₹30 |
| CMP | ₹284.95 |
| P/E (Trailing) | ~9.5x |
| Industry Avg P/E | 20–25x (Auto Ancillaries) |
| Edu Fair Value | ₹420–450 |
💥 Undervalued. If order execution ramps up in FY26, re-rating is almost inevitable.
🧨 Risks
- CV segment remains weak — 2 & 3-wheeler volumes shrinking
- OEM pricing pressure continues
- Order execution lags can affect YoY comps
- JV dependencies (MTCS, TMR) still hold revenue leverage
🏷️ Tags:
Talbros FY25 Results, Talbros Auto Components, EV auto ancillaries India, 5% UC stocks today, underrated auto stocks India, TMR Talbros Marugo JV, Marelli JV India, Talbros exports growth
🔍 So Why the Fall?
Here’s what might be behind the 5% lower circuit:
| Possible Reason | EduInvesting Verdict |
|---|---|
| ❌ Growth only 7%? | Still solid in a bad CV market |
| ❌ No dividend or bonus? | True, but growth focus > payouts |
| ❌ EV news not hyped enough? | They did win EV orders |
| ❌ Low liquidity / operator exit? | Highly likely |
| ❌ JV dependency? | Maybe, but all JVs showed growth |
| ✅ Just market being market | 5% fall on good results = irrational |
