NRB Bearings Q1 Results: Net Profit Rises 15% YoY, EBITDA Margin Expands to 17.23%
NRB Bearings posted a 15.1% YoY rise in consolidated net profit to ₹37.76 crore for Q1, with revenue from operations growing 19.2% to ₹369.53 crore. EBITDA improved to 636M rupees from 514M rupees YoY, with the EBITDA margin expanding to 17.23% from 16.58%. Key developments included an exceptional insurance gain of ₹2.65 crore and a ₹30.50 crore investment in subsidiary MTRPL.
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NRB Bearings reported a consolidated net profit of ₹37.76 crore for the quarter ended June 30, 2026, marking a 15.1% increase from ₹32.81 crore in the same period last year. Consolidated revenue from operations rose 19.2% to ₹369.53 crore, up from ₹310.05 crore in Q1FY25. The Board of Directors approved the unaudited financial results and issued corporate guarantees totaling ₹50 crore on August 7, 2026.
The statutory auditors, Walker Chandiok & Co LLP, conducted a limited review of the standalone and consolidated financial statements pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34). The Board also approved corporate guarantees in favor of HSBC Bank for its subsidiary, NRB Unitec Friction Solutions Private Limited, to support term loan facilities.
Financial Performance
Consolidated profit before tax stood at ₹51.42 crore, compared to ₹45.00 crore in Q1FY25. Standalone profit after tax increased 31.7% to ₹34.77 crore from ₹26.39 crore. Basic and diluted earnings per share (EPS) for the consolidated entity rose to ₹3.80 from ₹3.31 in the prior year period. EBITDA for the quarter came in at 636M rupees versus 514M rupees in the same period last year, with the EBITDA margin expanding to 17.23% from 16.58% YoY, reflecting improved operating leverage.
The following table summarises the key consolidated financial metrics for the quarter:
| Metric | Q1FY26 (₹ in lakhs) | Q1FY25 (₹ in lakhs) | Change |
|---|---|---|---|
| Revenue from Operations | 36,953 | 31,005 | +19.2% |
| Total Income | 37,500 | 31,946 | +17.4% |
| Total Expenses | 32,623 | 27,446 | +18.9% |
| Profit Before Tax | 5,142 | 4,500 | +14.3% |
| Net Profit After Tax | 3,776 | 3,281 | +15.1% |
EBITDA Performance
| Metric | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| EBITDA | 636M Rupees | 514M Rupees | +23.7% |
| EBITDA Margin | 17.23% | 16.58% | +65 bps |
Key Developments
The company recorded an exceptional gain of ₹2.65 crore from an insurance claim regarding the fire incident at its Waluj plant in May 2023. The insurance company sanctioned this disbursement on June 30, 2026, and it was received on July 29, 2026. Previously, ₹6.21 crore was disbursed during FY26.
NRB Bearings completed the conversion of an inter-corporate deposit into equity shares of its subsidiary, Mahant Tool Room Private Limited (MTRPL). An aggregate amount of ₹7.15 crore, comprising principal and accrued interest, was converted at a valuation of ₹29,688 per share. MTRPL filed the return of allotment with the Registrar of Companies on June 4, 2026. The company subsequently invested an additional ₹30.50 crore in MTRPL to facilitate the acquisition of M/s. Mahant Tool Room, Bengaluru.
What the Numbers Show
The growth in net profit outpaced the growth in total expenses, indicating improved operational efficiency despite rising input costs. Cost of materials consumed rose 10.3% to ₹138.61 crore, while employee benefits expense increased 15.3% to ₹56.82 crore. The EBITDA margin expansion to 17.23% from 16.58% YoY further underscores the improvement in operating profitability. The exceptional insurance gain contributed approximately 5.1% to the consolidated profit before tax, highlighting that core operational profitability drove the majority of earnings growth. Outstanding trade receivables from overseas customers amounted to ₹25.12 crore, pending settlement under FEMA regulations.
Historical Stock Returns for NRB Bearings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.57% | +10.90% | +10.05% | +67.94% | +67.18% | +234.18% |
How will the ₹30.50 crore investment in MTRPL and the acquisition of Mahant Tool Room impact NRB Bearings' vertical integration strategy and future cost structures?
What is the expected timeline for the settlement of the ₹25.12 crore outstanding trade receivables under FEMA regulations, and how might this affect near-term cash flow?
Can the 65 basis point expansion in EBITDA margin be sustained in subsequent quarters given the rising input costs for materials and employee benefits?
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