Menon Pistons - Menon Pistons

📊 BSE: 531727 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue was INR 254.45 Cr in FY25, a marginal decline of 0.5% from INR 255.72 Cr in FY24. Standalone revenue, primarily from pistons and pins, grew 1.69% YoY to INR 212.35 Cr.

Geographic Revenue Split

The company caters to both domestic and export markets, though specific percentage splits by region are not disclosed in available documents.

Profitability Margins

Consolidated PAT margin was 9.37% in FY25 compared to 10.34% in FY24. Standalone Net Profit Margin decreased by 29% to 8.16% in FY25, primarily because the previous year included a one-time dividend from a subsidiary.

EBITDA Margin

Consolidated PBILDT margin was 17.10% in FY25 (INR 43.52 Cr) vs 17.82% in FY24 (INR 45.56 Cr). Standalone PBILDT margin was 15.16% in FY25.

Capital Expenditure

The company expanded installed capacity for Pistons/Assemblies from 25 lakh to 36 lakh units (44% increase) and Gudgeon Pins from 19 lakh to 27 lakh units (42% increase) between FY24 and FY25. Planned capex includes ongoing solar power projects.

Credit Rating & Borrowing

CARE A-; Stable (Long-term) and CARE A2+ (Short-term) reaffirmed in July 2025. Interest coverage ratio remained strong at 21.66x (Consolidated) and 14.82x (Standalone) for FY25.

⚙️ Operational Drivers

Raw Materials

Steel, Aluminium, Copper, and Precious metals.

Capacity Expansion

Current installed capacity (FY25): Pistons/Piston Assemblies at 36 lakh units, Gudgeon Pins at 27 lakh units, and Plungers at 24 thousand units.

Raw Material Costs

Raw material prices for steel and aluminium are volatile; escalating prices pose a direct threat to margins on pistons and pins. Procurement strategies focus on mitigating these fluctuations.

Manufacturing Efficiency

PBILDT margin improved to 19.21% in Q1FY25 (from 18.42% in Q1FY24) due to an increased portion of machined components in the sales mix.

📈 Strategic Growth

Growth Strategy

Growth is driven by increasing the portion of higher-margin machined components, leveraging expanded capacity (Pistons up 44%), and acquiring new business from diverse automotive segments. The company also focuses on the non-cyclical replacement market to stabilize revenue.

Products & Services

Pistons, Piston Assemblies, Gudgeon Pins, Plungers, Piston Rings, and Auto shafts.

Brand Portfolio

Menon Pistons, Lunar Enterprises Private Limited (LEPL).

New Products/Services

Increasing focus on machined components and technology-upgraded pistons to meet BSVI and OBD-II standards.

Market Expansion

Focus on Tractor and Commercial Vehicle segments in both domestic and export markets.

Strategic Alliances

Group entities include Menon Piston Rings Private Limited, Menon Engineering Services, and Menon Exports.

🌍 External Factors

Industry Trends

The industry is transitioning toward BSVI, OBD-II, and scrappage policies, leading to a shift in vehicle technology and requiring manufacturers to innovate rapidly.

Competitive Landscape

Highly fragmented industry with significant competition from both organized and unorganized sectors.

Competitive Moat

Moat is built on long-term business relationships with major OEMs and a strong presence in the lucrative, non-cyclical engine overhauling (replacement) segment.