Talbros Automotive Components has delivered its strongest quarterly performance in Q2 FY27, but the bigger development lies beyond the earnings numbers. New orders worth over ₹1,000 crore, growing exports and fresh opportunities in data centres are shaping the company’s next phase of expansion.

The company reported consolidated revenue from operations of ₹267.5 crore, compared with ₹216.9 crore in the corresponding quarter. This represented growth of approximately 23% year on year, supported by improvements across its operating divisions.

EBITDA increased 33% year on year to ₹47.2 crore, compared with ₹35.6 crore. Operating profit therefore grew faster than revenue, indicating better profitability from the company’s expanding business.

The EBITDA margin improved to 17.6% from 16.4% a year earlier. This expansion of approximately 120 basis points suggests that higher volumes and improved operating efficiency helped strengthen margins.

Profit after tax increased 43% year on year to ₹32.9 crore, compared with ₹23.1 crore. The stronger profit growth reflects the combined impact of revenue expansion and improved profitability.

The PAT margin increased to 12.3% from 10.7% in Q2 FY26. This indicates that the company retained a larger proportion of its revenue as net profit during the quarter.

One important reason behind the growth was the commercial production of orders secured over the previous two years. Some of these projects had been awaiting customer launch schedules before entering regular production.

Management confirmed that production has now started across chassis components, forgings and heat shields. The resulting increase in business activity contributed to the company’s stronger quarterly revenue.

The Gasket and Heat Shield division generated revenue of ₹176.4 crore, representing 23% annual growth. Sustained demand from original equipment manufacturers and improved recovery of price increases supported the division.

The Forgings division reported revenue of ₹92.5 crore, also increasing 23% year on year. This business remained an important contributor to the company’s diversified automotive component portfolio.

Talbros’ joint ventures delivered particularly strong growth. Marelli Talbros Chassis Systems recorded revenue of ₹60.8 crore on a proportionate basis, representing an increase of 54% year on year.

Talbros Marugo Rubber also reported growth, with proportionate revenue increasing 33% to ₹23.3 crore. These figures demonstrate the contribution of the company’s joint venture businesses.

Exports accounted for 28% of income from operations during Q2 FY27, compared with 25% a year earlier. The higher export contribution highlights the increasing importance of international customers.

The Forgings division remained especially export focused, with overseas markets contributing approximately 57% of its revenue. Exports also represented 27% of Marelli Talbros Chassis Systems revenue.

Another significant development was the company’s expanding order pipeline. Talbros and its joint ventures secured new orders worth more than ₹1,000 crore, scheduled for execution over the next five years.

Approximately ₹700 crore of these orders came from export markets, while around ₹100 crore related to electric vehicle applications. This provides potential revenue visibility across international and emerging automotive segments.

However, the total order value represents future business rather than revenue already earned. Actual financial contribution will depend on customer production schedules, execution timelines and delivery volumes.

Talbros is also seeing opportunities beyond traditional automotive applications. Its gaskets are being used in engines that power backup generators for data centres, providing exposure to a growing infrastructure segment.

For H1 FY27, consolidated revenue from operations reached ₹509.7 crore, representing growth of 19% year on year. EBITDA increased 28% to ₹89.9 crore, with margins improving to 17.6%.

First half profit after tax increased 39% to ₹63 crore, compared with ₹45.3 crore a year earlier. The performance indicates that earnings growth remained stronger than revenue expansion across the six month period.

Management expects the second half of FY27 to be stronger than the first half, supported by the ramp up of recently commercialised orders. However, freight, energy, steel and other commodity costs remain important risks to margins.

Talbros enters the second half with a stronger order pipeline, growing exports and increasing exposure to EV and data centre applications. The key development to monitor is how effectively these opportunities convert into revenue while the company maintains its improved operating margins.