NRB Bearings Limited reported a strategic shift beyond its core automotive business, with plans to expand into industrial bearings, aerospace, robotics and construction equipment while maintaining margins in the 18 percent to 20 percent range. The company reiterated a medium-term revenue target of INR25 billion by 2031, supported by diversification and phased capital expenditure.
“Beyond automotive, our industrial business is expected to grow rapidly and add significant opportunities through greenfield and partnership initiatives,” said Harshbeena Zaveri, Vice Chairman and Managing Director of NRB Bearings Limited. She added that the platform would expand into construction equipment, agriculture, industrial machinery and robotic applications.
Industrial bearings currently account for approximately 8 percent to 10 percent of revenue and are moving towards 11 percent to 12 percent, according to management. The revenue mix stands at about 75 percent domestic and 25 percent exports. Segment exposure includes 27 percent to 30 percent commercial vehicles, about 30 percent two- and three-wheelers, around 20 percent passenger vehicles, and 10 percent to 12 percent aftermarket.
On profitability, Zaveri said aerospace could deliver structurally higher margins. “If we even had like INR2 billion or INR3 billion, which I’m not giving as future guidance, but I’m just mentioning for thumb ruling of aerospace business, it would be somewhere around 30 percent EBITDA margin,” she said. She added that the company aims to maintain overall EBITDA margins within the 18 percent to 20 percent band despite expansion into new areas.
NRB has secured Board approval for INR2.7 billion of capital expenditure, to be deployed over the next two to two-and-a-half years. Management said the investment is being phased in line with customer demand and product strategy rather than through a single large greenfield expansion.
“Our capex is based on our next year’s and our three-year plan,” Zaveri said, adding that investments are aligned with specific customer programmes across automotive and industrial segments. She said the company does not operate on a constraint-driven installed capacity model and instead focuses on continuous balancing investments.
The company indicated it can produce at least 15 percent more than stated capacity through process optimisation and technology upgrades. Some equipment from an earlier INR2 billion plan has already been installed, with additional machinery being added on a rolling basis depending on lead times.
Earlier in the quarter, NRB announced a joint venture with Italy-based Unitec to manufacture industrial cylindrical roller bearings at a facility in Uppal, Hyderabad. NRB will hold 75 percent in the venture, with total cluster investment of INR1.1 billion. Production is expected to begin in 15 to 18 months, after installation and stabilisation of long-lead equipment.
The company also entered the aerospace segment through the acquisition of Mahant Toolroom in Bengaluru. The business has an order book of more than INR250 million and manufactures precision components including landing gears, mission-critical fuel system parts and rod ends. Management said the acquisition allows faster scaling in a segment with long qualification cycles.
For Q3 FY26, revenue rose 18 percent year-on-year to INR3.28 billion. EBITDA increased 26 percent to INR640 million, with margin improving to over 19 percent, compared with approximately 17 percent to 18 percent in the same period last year. Profit after tax before exceptional items rose 44 percent year-on-year to INR380 million.
For the nine-month period, revenue reached INR9.63 billion, up 11 percent. EBITDA grew 20 percent to INR1.93 billion, with EBITDA margin at 19.5 percent. Profit after tax before exceptional items stood at INR1.12 billion, up 27 percent year-on-year.
Inventory days have reduced to 110 days from a historical range of 120 to 130 days, with management indicating an optimal range of 90 to 100 days. Working capital limits stand at INR4.5 billion, with limited utilisation.
NRB Bearings Limited manufactures needle roller bearings and related precision components, supplying automotive and industrial customers across 43 countries. The company serves commercial vehicles, two- and three-wheelers, passenger vehicles, industrial applications and export markets.
