NRB Industrial Bearings Limited has entered into definitive agreements to acquire a 9.08% equity stake in Lok Green Energy India Private Limited, marking a strategic step toward securing captive renewable energy. The company signed the Shareholders’ Agreement, Energy Delivery Agreement, and related ancillary documents on August 05, 2026, moving from board approval to execution phase. This acquisition aims to optimize long-term energy costs and ensure compliance with regulatory mandates for captive power consumption under electricity laws.

The transaction involves a cash consideration capped at ₹42 lakh for the equity investment. Lok Green Energy India Private Limited operates as a special purpose vehicle (SPV) for a 3.7 MW solar power project located in Nashik, with expansion capacity up to 10 MW. The target entity, incorporated on September 27, 2022, has reported nil turnover for FY23, FY24, and FY25 as the project was under development during these periods. NRB Industrial Bearings expects to complete the acquisition within 90 days from the execution of the Power Purchase Agreement (PPA) and Share Subscription Agreement.

This strategic move comes as NRB Industrial Bearings navigates financial headwinds, having reported a widened net loss of ₹6.72 crore in Q1FY26. The shift toward renewable energy is intended to mitigate operational expenses, particularly finance costs which stood at ₹342.69 lakh in the quarter. By locking in green energy rates through a captive arrangement, the company seeks to stabilize its cost structure against volatile energy markets. The acquisition is not a related party transaction, and the promoter group holds no interest in the target entity.

Strategic Rationale

The decision to invest in a captive solar project aligns with broader industry trends where manufacturing firms seek to reduce dependency on grid power and lower carbon footprints. For NRB Industrial Bearings, which faces margin pressures due to high employee benefits and finance costs, controlling energy inputs offers a tangible path to cost optimization. The SPV structure allows for dedicated management of the renewable asset while enabling NRB to benefit from the generated power without bearing the full capital burden of infrastructure development.

Regulatory compliance is another key driver; the acquisition helps the company meet evolving norms regarding captive power consumption. Vandana Yadav, Group Company Secretary and Compliance Officer, confirmed that all requisite disclosures have been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company will continue to monitor the progress of the Nashik project, aiming to commission it swiftly to realize cost savings in subsequent fiscal quarters.

NRB Industrial Bearings Limited has announced that its Register of Members and Share Transfer Books will remain closed from Saturday, August 08, 2026 to Friday, August 14, 2026 for its 15th Annual General Meeting (AGM). The company has fixed Friday, August 07, 2026 as the record date to determine shareholder eligibility for the meeting. The AGM is scheduled to be held on Friday, August 14, 2026 at 2:00 p.m. via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The cut-off date for remote e-voting and e-voting at the meeting is also Friday, August 07, 2026.

Key Dates for AGM

The following table outlines the schedule for the upcoming AGM:

The disclosure was made in compliance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has engaged CDSL as the e-voting service provider, and Mr. J. J. Gandhi has been appointed as the Scrutinizer for the e-voting process. Members whose names are recorded in the register of members or beneficial owners as on the cut-off date are entitled to vote.

Financial Performance Overview

The company's standalone financial performance for FY2025-26 reflected revenue growth alongside a widened net loss. Revenue from operations rose 18.63% to ₹7,562.01 lakhs from ₹6,374.20 lakhs in the previous year. However, the company reported a loss after tax of ₹3,010.59 lakhs compared to a profit of ₹1,829.70 lakhs in FY2024-25. The exceptional item of ₹172.75 lakhs in FY2026 relates to incremental estimated obligations recognised pursuant to the Government of India notifying the four Labour Codes effective November 21, 2025.

AGM Agenda

The 15th AGM will seek shareholder approval on material related party transactions and revisions in senior management remuneration. Resolutions include approving related party transactions with NRB-IBC Bearings Pvt. Ltd. and NIBL-Korta Engineering Pvt. Ltd., with an aggregate value not exceeding ₹50,00,00,000 each for FY2026-27. Additionally, the re-appointment of Mr. Devesh Singh Sahney, who retires by rotation, will be proposed. The Board has not recommended any dividend for FY2025-26.