Earnings call transcript: Bonfiglioli Transmissions jumps on strong Q3 2026 growth

Bonfiglioli Transmissions reported robust Q3 CY26 results on their earnings call. Revenue surged 13.2% year-over-year to INR 6,602 million, while EBITDA climbed 38% to INR 1,289 million and net profit grew 38.2% to INR 871 million. The company's shares jumped 10% to $794.55 following the announcement, reaching a new 52-week high as investors embraced the growth story.

The revenue surge was fueled by strong demand both domestically and in exports. Export sales rose 46.2%, contributing 30.6% to nine-month revenue. Management outlined a target of 20% revenue growth for CY26 and a 15% compound annual growth rate (CAGR) for the period 2026-2028. The company's diverse product portfolio, including industrial automation, off-highway mobility, and wind solutions, forms the backbone of its growth model, supported by long-term customer relationships built through co-engineered products and a customer base spread across various industries.

Domestically, revenue grew 23.8% in the quarter, while exports increased 46.2% in the quarter, making up 30.6% of the nine-month revenue. The company's manufacturing facilities, headquartered in Chennai and Pune, source about 70% of materials locally, enhancing supply chain resilience and margins. The company's fixed asset turnover stands at 8.06 times as of September 30, 2026.

While the company's growth outlook is promising, its shares are trading near their 52-week high, and technical indicators suggest the RSI is in overbought territory. Despite this, investors welcomed the combination of growth and profitability, particularly management's optimistic targets for revenue growth and EBITDA margins.