Talbros Automotive Components Ltd (NSE: TALBROAUTO) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Navin Juneja — Director and Group Chief Financial Officer
Anuj Talwar — Group Managing Director
Analysts:
Unidentified Participant
Shikha Mehta — Analyst
Vishwanath — Analyst
Dipen Shah — Analyst
Yash Kukreja — Analyst
Kushal Shroff — Analyst
Prisha Rathi — Analyst
Yug Modi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Talbros Automotive Components Limited Q1FY26 earnings conference call. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anuj Talwar, joint Managing Director. Thank you. And over to you sir.
Anuj Talwar — Group Managing Director
Thank you so much. Good morning everyone and a very warm welcome to our quarter one results earnings calls on the call. I’m joined by Mr. Naveen Janeja, our director on the board, our group CFO also we have SJ on the call with us, our IR advisors from Mumbai. The results and the presentation have been uploaded on the stock exchange. Let me begin with the industry overview. In quarter one FY26, the Indian Automotive industry recorded a muted performance in the domestic market with the two wheelers and the PV segment not doing good. And the tractor segment along with EV vehicles have done better in the quarter, but obviously there’s a much smaller base.
Overall volumes declined by 5.1% year on year. The commercial vehicle space, where today Talbos is a large player, saw a muted growth, posting a 1% decline year over year in this segment. While price increase by OEMs provided some support, the demand remains soft, particularly in small commercial vehicle categories. Electric vehicles on the other hand, continue to perform strong during the quarter. The segment’s momentum was supported by an increasing consumer acceptance, a broader product availability and improving charging infrastructure. That said, the pace of growth moderated compared to previous quarters mainly due to phase reduction of government subsidies which affected the price competitiveness and the consumer affordability.
The two wheeler, the three wheeler segment remains subdued with volumes declining by around 2% yoyo. This softness is largely attributed to an ongoing inventory correction by OEMs and weak demand for entry level bikes, especially those focused on fuel efficiency. Despite the near term challenges, the industry outlook remains cautiously optimistic supported by expectation of a strong festive season above normal monsoons which could help revive the rural. What we have seen and spoken to our OEMs in the domestic sector and export. They say that quarter two will be better than quarter one and quarter three definitely will be far better than the previous quarters.
Coming to company performance in the first quarter of FY26, Calbus delivered a steady resilient performance, navigating through persistent macroeconomic challenges, a broadly subdued demand environment in the auto sector and a slowdown in the export activity. Despite these headwinds, the company achieved a marginal 1% year on year increase and the total of income from operation reaching 211 crores. This growth, though modest, reflects the company’s stable operational execution. EBITDA for the quarter stood at 35 crores, EBITDA margins at 16.5% 16.5% which tells you that no matter if the growth goes down, we work a lot on our operational efficiencies and economy of scale and continue to give you good margins.
Our exports were strong so that’s a good product mix. So thereby you got a thereby the net profit grew year by year at by 8% to 22 crores. The quarter also highlighted the resilience of Calbus diversified business model. While the forging segment faced a marginal decline due to its export orders and a delay in projects that had to be executed by OEMs worldwide, the company’s joint ventures did decently well. Marelli, Talbos and Pablo’s Marugo JV delivered robust EBITDA growth of 30% and 26% respectively, driven by an increased focus on value added and technology driven products.
On the exports front, revenue from international markets contributed 28% of the income for the quarter. During our consistent effort to increase exports within the export mix, the UK accounted for 56% followed by Europe excluding UK at 27% and the US only at 13%. USA contributes to about 3% of the total revenue. This well diversified geographical spread over Talbot is a natural hedge against region specific risks including the recent tariff related developments between US and India. @ the moment, we are continually looking to expand our exports to more countries. As we speak, TSL continues to maintain a balanced revenue mix across OEMs, aftermarket and export markets which again provides a natural hedge.
The company secured orders worth 580 crores during the quarter. These orders span across different product categories, geographies highlighting customers preference for Talbot’s capabilities. While fluctuations in the market demand continue to pose challenges. Talbot is committed from shifting from pure acquisition focused efforts to efficient execution. This is crucial to translating our strong order pipeline into a sustained revenue growth. Looking ahead, Tasbose remains firmly aligned to its long term strategy. The company will continue to deepen its relationship with OEMs. We are in discussions with OEMs other than existing ones in our country to get more business from them, expand our EV component offerings and at the same time increase exports as well.
That’s all from my side. Before I pass on the call to Mr. Juneja, I would like to say that our company is looking at a stronger quarter two than quarter one and at the same time quarter three seems to be very bullish because a lot of our order books which have been delayed due to execution by OEMs will come into burning. Thank you and I pass on the call to Mr. Junaija.
Navin Juneja — Director and Group Chief Financial Officer
Thank you. Anuj. Good morning and a warm welcome to all the participants. Let me begin with the financial overview. Total revenue for Q1FY26 stood at 211 crores as against 209 crore in Q1 of FY25 which is a relatively flattish growth. EBITDA for Q1FY26 stood at 35 crore as against 35 crores in the last year of Q1FY25. EBITDA margin stood at 16.5% pad for Q1 of FY26 stood at 22 crores as again 22 crores in Q1 of FY25 a growth of 8% on yoy basis. Now coming to the division wise performance in the gasket division in Q1FY26 sales for the gasket division stood at 135 crores as against 133 crores of Q1 of FY25, a moderate 2% growth on yui basis.
EBITDA for Q1 of FY26 stood at 22 crores which is a growth of 5% as compared to the same period of last year. Coming to the forging division revenue for Q1FY26 was 75 crores which is remained little flattish primarily because of the export demand little subdued in European market where our major customers are there. EBITDA stood at 1.13 crores in Q1 of I26 which is slightly a degrowth as compared to last year. But as Anush told you that we will recover this in the second quarter for maritime chassis system. Private limited revenue for Q1FY26 stood at 73 crores as against 69 crores, a growth of 6% on yu y basis.
EBITDA for Q1 of FY26 stood at 13 crores, a growth of 30% on y basis. Now coming to the Talbot Margo Rubber Private Limited. Revenue for Margo Rubber business in Q1FY26 was at 30 crores. A slight degrowth as compared to last year because of the delay in launches by Maruti of EV vehicle and EBITDA stood at 4 crores in Q1 of i26 as again 3 crores in Q1 of i25. A growth of 26% on Y basis. We are dedicated to creating superior value for our customers through highly high quality products offered at a competitive price.
We aim to consistently increase and exceed customer expectations while building trusted long term relationship with our stakeholders through operational excellence. And this is from our side and would like to open the floor to question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shika Mehta from Time and Tide Advisors. Please go ahead.
Shikha Mehta
Hello sir. Congratulations on a decent set of numbers. Given the situation, I just had a few things I wanted to understand. I think in Q4 we mentioned that we would see a better FY26 than FY25 because there was a delay of certain orders. Are we still holding both on that guidance?
Navin Juneja
Yeah, we are still hopeful that irrespective of what has happened in the first quarter and what is happening in us, et cetera, we are still hopeful that we will achieve a double digit growth in this financial year.
Shikha Mehta
So would that be. Are we hoping to be closer to 20% or are we.
Navin Juneja
No, no. 20%, ma’. Am. No, I never said 20% in last, last call. Also I said around 15%.
Shikha Mehta
Okay.
Navin Juneja
No, no, no. Double digit growth start from 10. 10% on one, ma’. Am.
Shikha Mehta
Right, okay. And secondly, I wanted to understand we’ve already done a lot to improve our margins to 16 and a half percent. Are we hopeful that we can improve this further or is this something that can be sustainable?
Navin Juneja
No. Ma’am, it will be improved further. When the top line goes up, it will be improved. Definitely. Don’t go see first one quarter. Wait for the year. We will deliver good results. I am quite hopeful at this moment.
Shikha Mehta
Understood. And another thing so I wanted to understand was we’ve, like we mentioned, there’s been a slight slowdown for a while now in the CV segment. But a lot of reports are suggesting that you Know green shoots are starting to be visible in that sector. So. So do we have any outlook on CV as a segment for us?
Navin Juneja
Of course you are right, it was June was very slow. July was also slow in CV segment. But with the festive season we can expect some upstick in this CV sector we are expecting. And plus we have new product launches in the CV segment. Of course it will take care of better growth for us in the city segment.
Shikha Mehta
And lastly so on the forging side, historically forging has been a segment of high growth for us and some of the last few quarters have been a little muted. But how can one look at the whole year and what is our expectation and if you could also help us understand what has happened because of which we’re seeing mutant growth.
Navin Juneja
First of all mutual growth is because last time I told you that because of the BMW delay schedule came down. But now it has been recovering and every quarter you can see a better performance on that front. Plus new products launches which are expected from OE customer have a little delayed by one or two months. Of course it will be also be there in the this quarter. One or two press one plus I think one or two press got breakdown for three weeks and I think one pass got breakdown for three weeks. One price got big down for two weeks and we lost order of approximately two to three crores because of that.
But it will be we will recover in this quarter. All prices are online now or recover. So you can see a better growth as compared to first quarter and second quarter. By the year end I’m expecting this division should be around 325 crores.
Shikha Mehta
Understood. And in Q2 are we expecting to see year on year growth as well and this and quarter on quarter will. Be better
Navin Juneja
the quarter on quarter because last year first two quarter were very good for the company and last two quarter was little muted this year I think first two quarter will match last year and then we can see a growth in the last two quarters. Because Anu showed in the speech also that new launch product launches we are expecting in third and fourth quarter.
Shikha Mehta
Third and fourth quarter
Navin Juneja
don’t see last year. See quarter to quarter. Yeah.
Shikha Mehta
Okay. And so lastly on the export front, I think this quarter we’ve done 28% of revenues. We’ve been targeting 35%. So any guidelines on when we can.
Navin Juneja
Yeah, yeah, we are still. Yeah, everybody will. No, no, us is nothing for us for a group. For the group is only 35 crores. 38 crores. Nothing but about the new new businesses we are getting is Mostly in the European segment. Europe, the scient which we are talking is on track. It will start in the third quarter. Plus we are expecting more business in that division. Export business I think will be announced within one or two months of that. So we are quite hopeful that we will be able to touch near to 35%. We are still hopeful.
Now we are 28% in this market. Yeah.
Shikha Mehta
So I think a year back we had mentioned something with Russia as well. Did that materialize or are we working on that or is that currently shelter?
Navin Juneja
No, no, we are working on that. Not directly. Russia through other country, not directly.
Shikha Mehta
Geography.
Navin Juneja
It will also start in the third quarter. Third quarter?
Anuj Talwar
Yeah, yeah, it will.
Shikha Mehta
Okay. And other than that are we currently looking at any new geographies or. This is our plan.
Anuj Talwar
We’re expanding Europe. We trying to expand Europe, you know in a decent way.
Shikha Mehta
Okay. Okay, understood. Thank you for answering all my questions and again congratulations.
Navin Juneja
Thank you.
operator
Thank you. A reminder to the participants, please press star and one to ask a question. The next question is from the line of Vishwanath from Prosperity Wealth Management. Please go ahead.
Vishwanath
Hello. Good morning sir. Am I audible?
Navin Juneja
Yeah, you are audible morning.
Vishwanath
Yeah. Thank you for the opportunity. So my first question was over the last few quarters the company’s revenues have remained range bound. So while our margins have improved due to operational efficiencies. So do we see this revenue trend primarily because of the subdued market demand or because of our utilization levels being capped and are we holding back on our capex because of the market demand as well?
Navin Juneja
Okay, but what has happened happened last three quarters some because of some customers have turmoil is happening in the whole world. You know that very well. And Indian market is also not supported from the last not perform really well. Auto components I’m talking about auto market has been subdued also so but we are quite hopeful and we have got orders sufficient orders to take the company forward. The order some order had been we had delayed that’s fine. But now it has started coming into birthing and we are capacity no stoppage of capex. We are in the forging.
We are recently ordered a 1600 ton press worth 10 crores approximately. We are ordering and the 4000 ton press by the before this end of this calendar year. So we are orders are in hand and we are hopeful that whatever the muted growth top line you have seen will improve in future quarters. Definitely you will have a look from third quarter onward.
Anuj Talwar
Yeah. I would like to add what Naveen mentioned. In our forging business which we believe in a lot the whole Point of ordering a heavy duty press like 4000 is to get larger part numbers, larger value, add larger value with the same OEMs and new OEMs which. And they want it from us. And that told you the commitment that we are putting in this business.
Navin Juneja
All capacity online.
Vishwanath
Yeah. So our Capex plans are as per going after.
Navin Juneja
Yeah, yeah we are, we are not holding any capex.
Anuj Talwar
This is a very short term phenomenon. Automotive is a cyclical industry. It’s. It is, it is not. It goes through this ups and downs. We will see the uptake happening again from quarter three will get better. So just a short term phenomena. It’s no cancellation of orders, it’s a delay of orders. Like for example some of our OEMs in Europe UK right. They’re launching some EV vehicles, we’re doing a lot of work with them. But the car is delayed by one year now. We’ve already put in the money, we have to wait. So you know a big brand name like Jaguar Land Rover can also get delayed by a year or so.
So it’s just a matter of time. And as we mentioned to you we are looking constantly adding new domestic customers as well as export.
Vishwanath
Understood sir. So thanks for that clarity. So my second question is regarding Marily. So we are the Capex completed with regard to that and are we still maintaining the 35, 40% growth for Marily? And we were also supposed to commence Maruti and Stellant fish supply from that. So is that on track as well?
Navin Juneja
Yeah, to answer your question Capex is online, it has been incurred and some is in the process of being incurred. We on track of it and we are expect the supply to be started from the third quarter onwards. We are on track of it. Everything is in line.
Vishwanath
Got it. And the last questions with regard to the recent UK fda so how will we benefit from the.
Navin Juneja
So it’s too early to comment on that because nobody has understood what is in depth. Sorry. But of course it will be benefit for us if our customers like JLR etc and JCB is there. I don’t know, I have no clear answer on that. Sorry.
Vishwanath
Okay sir, thank you. Thank you for the. Thank you for answering all the questions.
Navin Juneja
Thank you.
operator
Thank you participants. To ask a question please press star and 1. The next question is from the line of depend from six senses. Please go ahead.
Dipen Shah
Good morning Mr. Junaija and Anuj. Thank you for the opportunity. Congrats for a good set of numbers given the circumstances.
Navin Juneja
Thank you for the support here.
Dipen Shah
Yeah Congress on all the new orders which you have Got. I just had one question on the margins. Sir. We have increased margin substantially over the last three years because of indigenization and cost control going ahead. How do you see the margin picture? Like we have said that we should be able to improve margins in the current year also without going into numbers. Could you just give us some of the levers what you think will lead to either sustaining or improving the margins from the current levels? Thank you so much.
Navin Juneja
Thank you. Of course our margin we are trying to improve. With the increase in top line the margin should automatically improve. Plus our focus on the export we are targeting 35% in by the next year end. So I think with that my margin will. Will improve further because export business has good margins and it’s always there. It’s always there. It has a good margin but risk is also there but doesn’t make a difference to us. So we are hopeful that increase in top line and change our product mix and the metal prices are also stable.
No more much movements happening and we are still. Our exercise on localization is still on and it’s not over. All these things will help me to improve my margin, but not 20%. It can improve by maximum 1% here and there. What a period of time.
Dipen Shah
Okay, okay, okay. Right sir. And any further Comments on your FY27 target of revenues which you had given.
Navin Juneja
Target by last time? I said it will be delayed by six to nine months, maybe 10, 12 months because lot of uncertainty anxiety has happened in the market. I don’t know. Which is both stuff as I don’t know. It creates a confusion in the mind of the investors, including me, wherever I invest. Yeah.
Anuj Talwar
Like I mentioned to you, it is a cyclical industry. We’ve not lost orders, we’re on track. This will come back. We’ve seen this cycle for so many years now in automotive. So you know, it’s, it’s. It’s not an issue. And like, like I told you, we’re looking to add more OEMs in domestic market and export market. You know. So if whatever’s slowing down, let’s be not stopping. We are just adding. So the focus is there. Every division is working on just order acquisition. And.
Navin Juneja
And we are not coming down, sir. We are not coming down.
Dipen Shah
Oh yes, yes. So there is no complaint as such. Just wanted to get a view.
Navin Juneja
Something is not beyond our control. If my OE customer like Maruti EV has been delayed magnet. So I can’t do anything on that now. Please. If my customer in UK has delayed his EV launch because I can’t do anything on that but my order, my sample has their past my everything is passed, everything is done. We have received amount for that dies and tool everything is there. No he said whenever he give us a green signal we will start.
Anuj Talwar
I mean it’s got delayed for like you can’t imagine. It’s delayed by almost a year and I’m getting talking to the OEM another three, four months delay. So it’s something that you know it’s beyond our control. But what we can do is tell our team. Okay fine. Fastest guy on the side. Let’s look at five more customers move in that direction.
Navin Juneja
But it takes some time.
Dipen Shah
Yes, we understand. Completely understand sir. Thank you so much sir and all the very best to you. Thank you.
Navin Juneja
Thank you sir.
Anuj Talwar
Thank you.
operator
Thank you. Participants, to ask a question please press star and 1. The next question is from the line of Yash from equity capital. Please go ahead.
Yash Kukreja
Thank you so much for the opportunity and so congratulations on the decent set of numbers. So my question is in the previous call you had mentioned that the capex cost for FY26 would be 50cr. So sir, what would be the peak revenue that we can generate from that capacity?
Navin Juneja
So this capacity If I do a 50 cr capacity my forging can do around 306750 crores and my gasket can touch 600950 crores I can do.
Yash Kukreja
Got it sir. Okay.
Navin Juneja
But never happens because some business comes in. We bought. We don’t work on me. We. We work on 85% of that. We should be achievable because every. Every press has a different component product M keep on changing so.
Yash Kukreja
Correct. Got it. Answer my second question is sir, how are things shaping up with the new clients such as Eminem as they are growing little faster than the peers.
Navin Juneja
Yeah. We are getting new businesses. Anuj will speak. Yeah.
Anuj Talwar
Which customer? I was with Mahindra Mahindra about I think last week was I think last Tuesday to meet their corporate procurement officers. We are increasing our footholder Mahindra Mahindra especially from our ceiling division for heat shields. It will become a good decent double digit customer for us within the next couple of years. So we’re very very positive. We’re getting good business from Mahindra Mahindra.
Navin Juneja
Yeah. We already ordered in hand but the vehicle whenever some programs are coming in third quarter some program are effective from next year. So give me a one and one year more. I will show you good growth in this.
Anuj Talwar
Yeah.
Yash Kukreja
Okay. Thank you so much.
Navin Juneja
Thank you.
operator
Thank you. Participants to Ask question. Please press star and one. The next question is from the line of Kushal Shroff from KS Broking. Please go ahead.
Kushal Shroff
Hello.
Navin Juneja
Hello.
Kushal Shroff
Yes. Sorry I’m late for the call. If I’m repeating it. Is there more order pipeline visibility in the forging and heat shields businesses? Considering your FY20 cent growth targets of 500 crore and 700 crores respectively.
Navin Juneja
Yes, it is there. Please give me a couple of months. We’ll come out with a new order. Order achievement. Give me a couple of months for that will come out. It is a pipeline is there? It is in pipeline. Some already come. But I want to announce a decent order book. I don’t want to announce small small. So please wait for a couple of months.
Kushal Shroff
Fair enough. I also have one more follow up question. Given the slowdown in European demand for the forgings businesses are there new geographies or customer segments being targeted to this impact?
Navin Juneja
No. No sir. There is no slowdown of our. Because BMW happened. Now it’s on track. There is no slow down from jcv. Jlr. The unbelievable BMW is on track. Plus we adding more parts. So sorry. I don’t foresee any export Demand coming from 4G division. You will see a better figure in future quarters.
Kushal Shroff
Okay. Thank you.
Navin Juneja
Thank you.
operator
Thank you. A reminder to the participants. Please press star and one to ask a question. The next question is from the line of Preesha Rathi from NM Securities. Please go ahead.
Prisha Rathi
Hello.
Navin Juneja
Yeah. Hello.
Prisha Rathi
Yes. Yes. Thank you for the opportunity. I have just one question. So in our 14 division revenue remained flattish at 75 crore due to muted European demand. What specific factors are impacting the European market? And how do you see recovery timelines?
Navin Juneja
Ma’, am, this flattish growth. I told you. We lost order of 2 to 3 crore due to the press breakdown. Number one. Number two, BMW schedule which was came down heavily because of the excess stock with them plus demand coming down and now being recovered. And new part numbers are being added in the third fourth quarter. So it will. I don’t see this quarter. Wait for the next quarter. You will feel growth in the top line. And this export business also in this. In future quarters. This temporary phase. It’s over now, ma’.
Prisha Rathi
Am. Okay. Thank you. This is helpful. Thank you, sir. And all the best.
Navin Juneja
Thank you, ma’. Am.
operator
Thank you. Participants to ask question please press star and one. The next question is from the line of Yog Modi from EP Capital. Please go ahead.
Yug Modi
Yes, sir. I am audible.
Navin Juneja
Yeah. You’re audible?
Yug Modi
Yeah. Sir, I just had two questions. The Indian automotive industries 5.1% volume growth, volume decline in Q1 FY23 yet you maintained a stable renaissance. Do you expect demand to. How do you expect expect the demand to evolve in the second half of the year especially in two wheelers and pvs and cvs.
Navin Juneja
We expect that demand to be improved a little bit because of festive number one because a lot of inventories were had by the customers and which is now I think coming down and now they again we can see the better schedules from the OE customers at this moment. That’s why I’m saying that this quarter should be good for the PV segment and to be there because of the good monsoon etc. And the festival of Pongal etc coming. You know that all the festivals are coming and demand is going to be there for that little better demand.
Third day cv CV I think from first July or first June they have started the AC cabin and that has little bit old inventory lying with them. They are trying to push that and with the new norms coming in force it’ll bit confusion is there and I think the people are working on that. It will improve in a couple of months definitely. We are expecting the CB segment also. Hello. Yes, hello.
Yug Modi
Thank you sir. That answers my question sir.
Navin Juneja
Thank you.
Yug Modi
Thank you sir.
Navin Juneja
Thank you.
operator
Thank you ladies and gentlemen. As there are no further questions I now hand the conference over to the management for closing comments.
Anuj Talwar
Well thank you so much for attending. The call as mentioned to you that you know we have had a muted start to the year but it will get better as the next quarters come into play with a festive demand around the corner and an early Diwali. Thank you so much.
Navin Juneja
Thank you.
operator
Thank you ladies and gentlemen on behalf of Talbros Automotive Components Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.