NRB Bearings just posted a 77% jump in full-year PAT — but the real story is what happened before this year, not during it.
A factory fire, a family settlement, and a demerger all hit this company in the last three years. Q4 FY26 is the quarter management says draws a line under all three.
Here’s what stood out, but before that:
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NRB Bearings – India’s largest independent bearing maker just paid ₹55 cr to make a problem disappear
1. The headline numbers
- Q4 FY26 (consolidated): Revenue ₹372 cr (+13% YoY), EBITDA ₹74 cr (+17%), margin 19.5%, PAT ₹42 cr
- FY26 full year: Revenue ₹1,335 cr (+11%), EBITDA ₹267 cr (+19%), margin expanded to 19.5% from 18.3%
- Full-year PAT: ₹146 cr, up 77% YoY — though management flagged this includes the impact of last year’s one-off ₹55 cr settlement payment, so the comparison isn’t quite apples-to-apples
2. The three-year mess, and how it got resolved
Management laid this out plainly on a dedicated slide:
- The 2023 Waluj factory fire cost an estimated ₹100+ cr in lost sales and caused a multi-year growth slowdown (FY22-FY25)
- A family settlement and demerger (Feb 2025) required a one-off ₹55 cr payment to NIBL (the demerged entity)
- Result: NRB Bearings now holds 100% control, with no business overlap with NIBL, and all production lines fully restored since February 2025
3. Margins are up — and management says it’s not one lever
CEO Harshbeena Zaveri attributed the margin expansion to a combination of factors: higher solar power usage (lower energy costs), increased automation reducing labour dependence, yield improvements, and renegotiated vendor contracts across materials, logistics, and insurance — explicitly framed as structural, not one-off.
4. A quarter-specific gross margin dip, explained
An analyst flagged that gross margins dipped below 60% for the first time in a while. Management’s explanation: a forex timing issue — a sudden last-day exchange rate move affected how COGS got converted for international entities, not a demand or cost structure problem. Management said this should normalize and shouldn’t be extrapolated.
5. The Mahant Toolroom (aerospace) bet
NRB acquired Mahant Toolroom, a defense-focused precision manufacturer, to fast-track entry into aerospace — management said building this in-house would have taken ~4 years just to qualify for RFQs (AS9100 certification is the bottleneck). Since acquisition, the order book has doubled from ₹25 cr to ~₹50 cr, with HAL (Hindustan Aeronautics) as effectively the entire order book across multiple divisions. Full operational control expected by mid-to-late May.
6. New customer wins, without the details
Management confirmed Siemens as a new customer and highlighted wins with National Aerospace Laboratories — but declined to share deal size or specifics, citing customer confidentiality.
7. Capex ramping meaningfully
- FY27 capex guided at ~₹120 cr (not ₹80 cr as one analyst assumed) — management flagged this is partly because they’re also acquiring land
- Total capex announcement across the next 18 months: ₹240 cr, roughly 90% machinery / 10% infrastructure, plus up to ₹40 cr specifically earmarked for land
8. The long-term number: ₹2,500 cr by FY31
Revenue has grown from ₹776 cr (FY20) to ₹1,199 cr (FY25) — a ~12% CAGR. Management’s aspirational target: ₹2,500 cr by FY31, aided by strategic joint ventures for import-substitution products and continued industrial/aerospace diversification. Management was candid that this is “increasingly becoming a concrete goal” rather than just aspirational.
9. Industrial segment: growing, but capacity-constrained by auto demand
Industrial (including tractors, farm equipment, construction) is already ~14-15% of revenue, with a stated goal of 20-25%. Management noted this segment would have grown faster this year if automotive demand hadn’t been unusually strong — the two effectively compete for the same manufacturing capacity, which management said is ~85% reported utilization but “much closer to full” when adjusted for changeovers and maintenance.
10. International business — modest growth, bigger ambitions
International business (all overseas-supplied customers, at consolidated level) grew just 4% in FY26 — impacted by a Middle East-linked gas shortage that affected the whole industry, not just NRB. Management’s guidance for FY27: 10-14% growth, “maybe even 15%.”
We track companies like this — solid balance sheets, low-key execution, before they show up on everyone’s radar — and break down the numbers that actually matter in our research.
As always, this is not a stock recommendation — This note is for informational purposes only and not a buy/sell recommendation. Please do your own due diligence before investing.
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