NRB Bearings: Powering Ahead with Strong H1 FY26 Performance and Strategic Expansion

NRB Bearings Limited, a prominent player in India's bearing manufacturing sector, has reported a robust financial performance for the second quarter and half-year ended September 30, 2025 (Q2 & H1 FY26). The company's consolidated revenue from operations for H1 FY26 stood at INR 635.3 crore, reflecting a healthy 7.5% year-on-year growth. This positive momentum is further underscored by a significant improvement in profitability, with Profit After Tax (PAT) for H1 FY26 increasing by 21% year-on-year to INR 74.22 crore. The consolidated EBITDA margin for the half-year reached an impressive 20.3%, demonstrating strong operational efficiency across its diverse segments.

The company's performance in Q2 FY26 alone was equally strong, with revenue from operations at INR 325.2 crore, up 7.9% YoY. PAT for the quarter grew by 15.2% YoY to INR 41.41 crore, and EBITDA saw a 9.1% YoY increase to INR 67.9 crore. This consistent growth over three consecutive quarters highlights NRB Bearings' resilience and effective strategic execution, especially following a period of operational challenges.

Strategic Clarity and Diversification

NRB Bearings has successfully navigated a period marked by a significant fire incident at its Waluj plant in 2023 and a family settlement. The fire, which caused an estimated INR 100+ crore sales loss and contributed to a modest revenue CAGR between FY22 and FY25, saw all production lines fully restored by February 2025. This operational recovery, coupled with the resolution of the family settlement that secured 100% control of the brand and intellectual property for NRB Bearings, has provided a clear runway for future growth.

Management's strategy is centered on diversification into high-margin, high-entry barrier industries. The company is actively expanding its footprint in industrial friction solutions, targeting segments like off-highway and construction equipment, HVAC systems, robotics & automation, industrial machinery, and agriculture. Furthermore, NRB Bearings has strategic plans to enter the aerospace and defense segments, leveraging its R&D capabilities to develop new products and solutions. The recent Board approval for the transfer of a minimum 99% stake in Sahney Bearings Private Limited, a promoter-owned company, at no consideration, is a strategic move to accelerate its expansion into aerospace, industrial, electric, and hybrid motor applications.

Future Growth Horizons and Capital Allocation

NRB Bearings has laid out an ambitious aspirational goal of achieving INR 2,500+ crore turnover by 2031, implying a CAGR of approximately 12% from FY20 to FY31. To support this vision, the Board has approved a CAPEX plan of INR 200 crore, with an additional INR 250-300 crore planned over the next five years, bringing the total CAPEX to INR 500 crore. These investments are aimed at scaling capacities for cylindrical, needle, and tapered roller bearings, expanding the size range, and entering unaddressed industrial applications. Capacities for new projects, including a Hyderabad plant focused on industrial cylindrical roller bearings, are expected to be in place by Q1 FY28.

Management has emphasized a conservative financial approach, maintaining a debt-equity ratio of less than 19% and holding a AA minus Crisil rating. This strong financial position provides ample flexibility to fund future expansions, joint ventures, and strategic acquisitions without significant leverage. The company also declared an interim dividend of INR 2.50 per equity share (125%) for FY26, payable to members on record as of October 31, 2025, demonstrating a balanced approach to capital allocation between growth and shareholder returns.

Leadership and Outlook

Ms. Harshbeena Zaveri, Vice Chairman and Managing Director, highlighted the company's commitment to technology leadership, R&D prowess, and a risk-mitigated strategy. She noted that NRB products power over 90% of vehicles on Indian roads and that the company is a 70-100% supplier to a significant proportion of its customers. The company's focus on co-designing new platforms for global OEMs and supporting domestic players in EV and hybrid technologies positions it well for future mobility trends.

In a recent development, Mr. Kishor Hairsh Talreja resigned as Company Secretary and Compliance Officer, and Ms. Khyati Hemang Danani was appointed to the role, effective November 03, 2025. This transition ensures continuity in key managerial functions as the company embarks on its next phase of growth. NRB Bearings is poised for sustained growth, driven by innovation, strategic diversification, and disciplined execution, aiming to solidify its position as a global leader in friction solutions.