Revenue rose 10.40% sequentially, but margin slipped
Expenses grew slightly faster than revenue, while other income contributed 26.09% of pre-tax profit.
Filed 11 Nov 2026, 13:52 IST · Talbros Automotive Components Ltd (TALBROAUTO)
Key takeaways
- Consolidated revenue rose +10.40% sequentially, but expenses grew +10.46%, trimming operating margin by 0.04 percentage points.
- Other income contributed 26.09% of pre-tax profit, making earnings less purely operating-led.
- Management said Talbros and its joint ventures received orders worth more than Rs 1,000 cr, including approximately Rs 100 cr from the EV segment.
Price around the results
Sequential growth came with a nearly flat margin
The consolidated business added +10.40% to revenue sequentially, while operating profit grew a slower +10.11%. Expenses rose +10.46%, marginally faster than revenue, so operating margin eased by 0.04 percentage points to 16.31%. This was a volume-led improvement in profit rather than a margin-led one.
Other income supported the pre-tax result
Other income accounted for 26.09% of pre-tax profit, so the reported result had a meaningful non-operating contribution. Interest expense increased +14.70% sequentially, faster than revenue, while the tax rate rose 0.55 percentage points. That combination helped keep net-profit growth at +9.73%, below the +10.51% growth in pre-tax profit.
Margin remains above the reported peer median
Talbros’ 16.31% operating margin was 4.86 percentage points above the 11.45% median for the 294 Consumer Discretionary peers that had reported. The quarter-on-quarter trend shows a small easing from 16.35% in Q1FY27, rather than a material change in operating positioning.
Orders and expansion raise the execution focus
Management said the new orders are scheduled for execution over the next five years, with commercialization of the covered products starting from FY27. The company said FY27 capex is planned at Rs 103 cr, compared with Rs 51 cr in FY26. Management also said it signed an exclusive contract with SANWA for lightweight aluminium heat shields, while the presentation said the gasket and heat-shields business has approximately 50% market share and is three times larger than its nearest competitor. The presentation reported H1 FY27 heat-shield revenue of Rs 34.62 cr, including Rs 2.17 cr from EVs, and forging-division EV revenue of Rs 11.53 cr.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹263 cr | ₹238 cr | +10.40% |
| Other income | ₹11 cr | ₹10 cr | +10.25% |
| Expenses | ₹220 cr | ₹199 cr | +10.46% |
| Operating profit | ₹43 cr | ₹39 cr | +10.11% |
| Operating margin (%) | 16.31% | 16.35% | — |
| Interest | ₹3 cr | ₹3 cr | +14.70% |
| Depreciation | ₹9 cr | ₹8 cr | +7.05% |
| Profit before tax | ₹42 cr | ₹38 cr | +10.51% |
| Tax | ₹9 cr | ₹8 cr | +13.46% |
| Net profit | ₹33 cr | ₹30 cr | +9.73% |
| EPS (₹) | ₹5.34 | ₹4.86 | +9.88% |
Operating margin of 16.31% compares with a Consumer Discretionary sector median of 11.45% across 294 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Revenue from heat shields was INR 34.62 crore in H1 FY27, including INR 2.17 crore from EVs.
- Revenue from EVs in the forging division was INR 11.53 crore in H1 FY27.
Guidance & outlook
- Commercialization of the products covered by the new orders will start from FY27.
- The new orders are scheduled for execution over the next five years.
Expansion
- Total capex is planned at INR 103 crore in FY27, compared with INR 51 crore in FY26.
New orders
- Talbros and its joint ventures received orders worth more than INR 1,000 crore.
- The new orders include approximately INR 100 crore from the EV segment.
New initiatives
- The company signed an exclusive contract with SANWA for lightweight aluminium heat shields for automotive applications.
Competition
- The gasket and heat shields business has approximately 50% market share and is three times larger than the nearest competitor.
What to watch
- Whether consolidated operating margin holds above 16.31% after the 0.04 percentage-point sequential decline.
- Execution progress on the more than Rs 1,000 cr order book, including approximately Rs 100 cr of EV orders.
- Progress against the management-stated FY27 capex plan of Rs 103 cr, versus Rs 51 cr in FY26.