This smallcap auto ancillary stock surge 15% on securing multi-year orders worth ₹475 crore; check details

In a filing to the stock exchanges, Talbros Automotive said that, along with its joint ventures (JVs), it has received multi-year orders worth ₹475 crore from leading original equipment manufacturers (OEMs). The company informed the stock exchanges that these orders, pertaining to domestic and export markets, are scheduled to be executed over the next five years.

“These orders include orders from all the company’s product lines like gaskets, heat shields, forging components, chassis and hoses,” Talbros Automotive Components said in a press release.

Talbros Automotive shares rallied up to 15% to hit an intraday high of ₹344 apiece on the NSE. However, the stock pared some of its early gains to trade 9.8% higher at ₹328.4 apiece on the NSE at 2:30 pm.

Giving a breakdown of the orders, the company said that orders worth ₹345 crore came from the sealing business for gaskets and heat shield products. Of this, ₹245 crore is for the heat shield sector, which was an order received from multiple OEMs. The remaining ₹100 crore is for the gasket division.

The company informed the stock exchanges that out of the total orders, the export orders amount to ₹131 crore, largely for the European market.

“By increasing exports to Europe, a highly specialised market for auto component manufacturers, the company is boosting its market share in that region. Additionally, increased exports are expected to enhance overall margins,” TACL said.

The company also received orders worth ₹35 crore through its joint venture, Marelli Talbros Chassis Systems, for chassis components. It further won orders worth ₹23 crore from the forging business, which includes exports worth ₹14 crore.

Another order worth ₹70 crore was received through its joint venture Talbros Marugo Rubber from one of the largest PV OEMs in India for hoses and A/V, the company said. The commercialisation of these products will start in FY26.

“These orders will help further enhance the company's revenue visibility and improve profitability,” TACL said.