Talbros Automotive Share: How Europe’s China+1 Shift Is Benefiting the Company

Synopsis: A well-diversified auto component maker just closed FY26 with stronger profits, a record order book, and a new CEO – setting up what could be a meaningful growth phase ahead.

India’s auto component sector has quietly been building some of its strongest export pipelines in years. One manufacturer, with decades of experience supplying gaskets, forgings, suspension parts, and rubber components to some of the world’s biggest vehicle makers, just posted its best-ever PAT and disclosed orders worth over ₹1,000 crore – much of it driven by demand from European OEMs looking to shift supply chains away from China.

Strong Numbers, But the Real Story Is the Order Book

Talbros Automotive Components Limited (TACL) reported consolidated revenue from operations of ₹870 crore in FY26, up 5% year-on-year. EBITDA came in at ₹155.1 crore at a margin of 17.4%, also up 5% year-on-year. Profit after tax (before exceptional items) rose 10% to ₹104.1 crore, with a PAT margin of 11.7% – up 50 basis points over FY25. Return on capital employed stood at 17.9%, and the company’s debt-to-equity ratio was a near-negligible 0.10x as of March 2026.

For the fourth quarter specifically, revenue from operations grew 15% year-on-year to ₹236.5 crore. Q4 PAT grew 19% to ₹31.6 crore at a margin of 13.1%. Every major business vertical – gaskets, chassis systems through the Marelli JV, and rubber products through the Marugo JV – showed revenue growth in both Q4 and the full year.

A Thousand Crore Bet on Europe

The bigger story for TACL may be unfolding in its export business, particularly as European automotive manufacturers continue diversifying supply chains away from China. The company, along with its joint ventures, has secured fresh orders worth over ₹1,000 crore, with a large share linked to export demand from Europe and the UK. 

The order pipeline includes ₹250 crore from the sealing business, ₹500 crore in forgings – including supplies to a newly onboarded major European automotive component manufacturer – ₹90 crore through the MTCS joint venture for EV-focused Body-in-White components, and ₹170 crore through the Talbros Marugo Rubber JV for hoses and anti-vibration products. 

Around ₹700 crore of the total order book is export-oriented, while nearly ₹100 crore is linked to the EV segment. These orders are scheduled for execution over the next five years, with commercialisation expected to begin from FY27.

Europe and the UK already contribute nearly 80% of TACL’s export revenue, and the company expects exports to rise from 24.9% of total revenue in FY26 to nearly 35% in FY27, indicating a stronger global positioning amid shifting supply chains.

Investing Ahead of the Growth

To capture this order pipeline, TACL has planned a total capex of ₹103 crore in FY27, up from ₹51 crore in FY26, spread across gaskets and heat shields, forgings, and both JV businesses. Capacity utilisation in FY26 was already high – 87% in gaskets and heat shields, 85% in forgings – making this investment essential to execute the incoming orders. On the leadership front, the company has also appointed Mr. Ashish Gupta as CEO, bringing over 35 years of manufacturing experience including a prior stint as CEO of the Marelli Talbros Chassis Systems joint venture.

About the Company

Talbros Automotive Components Limited, headquartered in Faridabad, Haryana, is a diversified auto component manufacturer with over 60 years of experience. The company operates across five product verticals – gaskets, heat shields, forgings, suspension components, and anti-vibration products and hoses – through its standalone operations and two 50:50 joint ventures with Marelli Suspension Systems (Italy) and Marugo Rubber Industries (Japan). It supplies to 30+ OEM clients including Maruti Suzuki, Tata Motors, Jaguar Land Rover, and Bajaj Auto.

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