NRB Bearing Limited

NRB Bearings reported a standalone revenue of INR 291 crores for Q2 FY26. The company achieved a commendable 21% earnings growth in the first half of the fiscal year, and its PAT margin for Q2 improved to 12% from 10% in the previous year. This performance reflects the company's ability to maintain and improve EBITDA margins despite a volatile industry landscape.

The company is actively pursuing growth by expanding market share in existing automotive segments and introducing new products. NRB has secured significant lifetime-nominated orders totaling over INR 750 crores, with INR 600 crores from global Tier 1s and INR 150 crores from Indian OEMs. These orders are for advanced hybrid and EV platforms, underscoring NRB's technological leadership and 'EV agnostic' product strategy.

NRB has outlined a robust CAPEX roadmap totaling INR 500 crores over the next five years, building on an initial approved INR 200 crores. For FY26, the company has already spent INR 150 crores, allocated to capacity enhancement (~INR 50 crores), maintenance/safety (~INR 40-50 crores), plant expansion (~INR 35 crores), and Thailand investment (~INR 15 crores). A new INR 200 crore Hyderabad plant, focusing on industrial cylindrical roller bearings, will commence with a foundation stone laying on December 4, 2025.

NRB is strategically expanding into high-margin, high-entry barrier industrial segments, including off-highway, construction equipment, and sunrise industries like robotics and drones. The company leverages its R&D prowess and 'mass customization' capabilities to serve these markets competitively, aiming to replicate its automotive success. This expansion is designed to drive growth while maintaining strong margins, differentiating NRB from competitors.

Following a settlement in February, the Harshbeena Zaveri family and associated promoters now hold over 50% ownership in NRB Bearings Limited. The agreement clarified that the NRB brand name and logos belong to NRB Bearings Limited. A one-time^📎 compensation of INR 55 crores was paid as part of this settlement, which impacted net quarter-level results but not operational profits.

The company addressed concerns regarding its elevated inventory levels, which have increased to approximately 350 days. Management explained this was a consequence of rebuilding customer confidence after a fire incident in FY25, the need to hold inventory for duplicated capacities, and recent tariff situations impacting exports to America. NRB is implementing a step-by-step approach to reduce these inventories.

NRB is globalizing its operations and has established NRB Holdings Limited, registered with the Dubai International Finance Center (DIFC). This structure aims to enhance financial transparency, streamline compliance across international entities (Thailand, USA, Germany), and attract global talent. The DIFC entity is intended to foster consistent practices and values across the group, thereby accelerating growth and reducing bureaucracy.

The aerospace segment is a new focus area for NRB, with the company in advanced stages of finalizing an agreement to acquire an aerospace supplier. This acquisition aims to expedite the certification process, which would otherwise take 3.5 years. NRB has already engineered plain spherical bearings for this sector and is setting up a dedicated plant in Waluj, with planned acquisitions in the INR 50-75 crores range.