Talbros Engineering is a pure-play rear-axle-shaft maker - the sole supplier to most of its customers for their specific vehicle models - born from the 1930s-era Talbros Group and spun off as an independent company in 1996. Its approach is to lock in original equipment manufacturers (OEMs) with dedicated production lines and mistake-proof automation, then run those lines at over 90% capacity utilisation year after year. # Business segments A single engine - rear axle shafts and related drivetrain components - sold to vehicle makers in India and the replacement market in North America, with a small but growing set of adjacent parts. ## 1. Rear axle shafts: the sole-source drivetrain partner **Talbros earns its living by being the only supplier of rear axle shafts for most of the vehicle models it serves, which turns each OEM relationship into a multi-year production run with predictable volumes.** - **Sole supplier to the majors** - the company is the single source of rear axle shafts for most of its customers’ specific models, and its top revenue contributors include Mahindra & Mahindra, Ashok Leyland, and Spicer India. That means once a vehicle programme is awarded, the company owns the part for the life of that model. - **Utility vehicles drive the factory** - in FY26, utility vehicles contributed 51% of gross sales, commercial vehicles 16%, tractors 3%, and exports 26%. The utility-vehicle dominance ties the company’s fortunes to India’s SUV and people-mover boom, while the export book - mostly North American replacement parts - provides a counterbalance outside OEM production cycles. - **Capacity runs hot** - with six plants and a total capacity of 29.2 lakh axle shafts per year as of March 2026, the company has consistently run above 90% utilisation. High utilisation means the fixed costs of the factory are spread over more units, which is how a component maker protects its margins. - **Beyond the axle shaft** - the company has developed and started supplying torsion bars, spindles, front axles, and camshafts, though rear axle shafts still account for 100% of turnover. These adjacent parts are planted in the same customer relationships, so they grow by selling more parts to the same buyers rather than by finding new ones. - **Cold extrusion is the edge** - the company uses cold extrusion technology, which strengthens the axle shaft and increases its efficiency compared to conventional hot forging. Combined with robots in the induction hardening process and fully automated machining lines with inbuilt Poka Yoke (mistake-proofing) inspection, the process filters out rejects before they ever leave the line. # Manufacturing and technology backbone **Six plants in Haryana run on a mix of cold extrusion, robotic hardening, and self-inspecting automation - a setup designed to make the same part millions of times without a defect escaping.** - **Eight locations, one cluster** - all eight manufacturing units sit in Haryana, across Hathin and multiple Faridabad industrial sectors, which keeps supply chains and technical teams concentrated. A new plant in IMT Faridabad was equipped with upgraded machines, and a 24,000 sq. ft. leased premises was added in 2025 for future expansion. - **Machines that inspect themselves** - air gauges at stations let operators self-inspect, while an eddy current sorter integrated with induction hardening detects surface and core defects automatically. A new automatic vision testing machine and an automatic straightening machine further reduce the chance of a bad part reaching the customer. - **Cost-saving energy choices** - the company uses PNG (piped natural gas) instead of diesel for furnaces, yielding a 20% cost efficiency, and has installed a 500 KW rooftop solar system along with transparent shop-floor sheets to cut daytime lighting. Battery-operated forklifts are replacing diesel ones, and stabilisers on main electric points are replacing multiple point-of-use stabilisers across plants. - **Green steel in, scrap recycled out** - 30% of raw material is procured from Green Steel Industries, which uses electric arc furnace technology, and the company recycles residual machining scrap as a by-product. Recyclable packaging has replaced wooden packaging to conserve natural resources. # Group structure and partners **A tightly held promoter group with no subsidiaries until mid-2026, now adding a wholly-owned subsidiary and two captive solar investments to secure power and future capacity.** - **Promoter family holds nearly three-quarters** - as of FY25, the Talwar family collectively held 72.59% of the shares, with Mrs. Gita Talwar and Mr. Rajesh Talwar each owning close to 20%. That concentration means strategic decisions sit with a small group aligned to the long term. - **A new subsidiary for the next chapter** - in May 2026, the board approved an investment by way of subscription to the equity shares of Talbros Nextgen Private Limited, a wholly-owned subsidiary incorporated on May 12, 2026, signalling a new vehicle for future projects. - **Captive solar to power the plants** - in February 2026, the board approved two 26% equity stakes in solar special-purpose vehicles: one developing a 5.615 MWp DC project in a Sirsa solar park, and another building a 3.7125 MWp DC captive facility in Haryana. Both are designed to meet the company’s renewable power sourcing goals and insulate it from grid electricity cost swings. - **Investment-grade credit** - CARE Ratings has assigned the company a long-term rating of CARE A-; Stable and a short-term rating of CARE A2+, reaffirmed with a stable outlook. The banking group includes HDFC Bank, DBS, Yes Bank, HSBC, and Bajaj Finance.