NRB Bearings Q3 Profit Jumps 34%, Stock Surges on Growth Plans

Introduction

NRB Bearings Limited delivered a robust financial performance for the third quarter of fiscal year 2026, leading to a significant positive reaction in the market. The company's stock price jumped 4.84% to Rs 293.50 after it announced a 34.17% year-on-year increase in its consolidated net profit. This growth is supported by a healthy rise in sales and strategic initiatives aimed at long-term expansion and diversification.

Stellar Q3 Financial Performance

For the quarter ending December 31, 2025, NRB Bearings reported a consolidated net profit of Rs 28.62 crore, a substantial increase from the corresponding period in the previous fiscal year. The company's net sales also saw a strong uptick, rising by 17.73% to Rs 327.92 crore. This performance marks the seventh consecutive quarter of growth on a corresponding quarter basis, underscoring the company's consistent operational efficiency and market strength.

The profit before tax (PBT) for the quarter stood at Rs 29.32 crore, up 32.66% from Rs 22.10 crore in Q3 FY25. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 26% year-on-year to Rs 64 crore. Furthermore, the EBITDA margin improved to 19.3% from 17.9% in the same quarter last year, indicating better profitability.

Management Commentary

Harshbeena Zaveri, the Managing Director of NRB Bearings, expressed satisfaction with the results. She stated, "We are pleased to report a strong consolidated performance for Q3FY26, marking the seventh straight quarter of growth on a corresponding quarter basis. Consolidated Revenue from Operations grew 18% YoY, while Consolidated EBITDA stood at Rs 64 crore, delivering a healthy EBITDA margin of 19.3%." Zaveri also noted that the consolidated Profit After Tax before exceptional items increased to Rs 38 crore, a 44% year-on-year growth, reflecting the company's strong underlying performance.

Strategic Expansion and Diversification

NRB Bearings is actively pursuing a strategy of diversification and growth. During the quarter, the company announced a strategic Joint Venture with the Italy-based Unitec Group. This partnership, named NRB Unitec Technologies Private Limited, will manufacture industrial cylindrical roller bearings (CRBs) in India, with NRB holding at least a 75% stake. The venture aims to leverage NRB's scale and R&D with Unitec's precision engineering expertise.

In another significant move, NRB Bearings is entering the aerospace segment through its wholly-owned subsidiary's acquisition of Mahant Tool Room. This acquisition comes with an existing order book and strong technical credentials, providing a solid foundation for growth in this high-potential sector. To support these new ventures and growing demand, the company is undertaking a capacity expansion of 17-25% across its plants.

Future Outlook and Growth Targets

The company has set an ambitious goal of achieving over Rs 2,500 crore in organic revenues over the next five years. This growth is expected to be driven by strong performance in current platforms, new product development, and a broader portfolio of friction solutions for automotive, industrial, EV, and hybrid applications. The management believes that selective 'plug and play' acquisitions could further accelerate this growth trajectory.

Shareholder Returns and Corporate Governance

Reflecting its strong financial position and confidence in future earnings, the Board of Directors has approved an interim dividend of Rs 3.20 per share. This move rewards shareholders for their investment and trust in the company's direction.

On the corporate governance front, the board has appointed Vineet Goel as the new Chief Financial Officer, effective February 11, 2026. Goel brings over two decades of global experience in financial management, working capital optimization, and strategic projects across various sectors. His expertise is expected to be instrumental in supporting NRB's long-term growth strategy.

Conclusion

NRB Bearings' Q3 FY26 results highlight a period of strong financial health and strategic execution. The significant growth in profit and revenue, coupled with ambitious expansion plans into aerospace and industrial segments, positions the company for sustained growth. With a clear vision, a robust order book, and a focus on technology-led manufacturing, NRB Bearings is well-equipped to solidify its leadership in the automotive space while successfully diversifying into new high-growth areas.