NRB Bearings Limited has demonstrated steady operational performance with consistent revenue growth, yet its stock has failed to deliver meaningful returns to shareholders. The company, with a market capitalization of Rs. 2,326.63 crore, closed at Rs. 240.05 per equity share, representing a decline of 4.11% from its previous day's close of Rs. 250.35 per share.

Stock Performance Analysis

The stock's performance across multiple timeframes reveals a concerning trend for investors:

While the long-term five-year return of 123.61% demonstrates the company's historical value creation, recent performance has been disappointing across all shorter timeframes.

Market Leadership and Business Profile

Founded in 1965 and based in Mumbai, NRB Bearings manufactures and sells ball and roller bearings for domestic and international OEMs. The company has built deep specialization in bearings, serving automotive and mobility sectors with products including needle bearings, roller bearings, thrust bearings, special ball bearings, bearing cages, crank pins, and planetary shafts.

The company maintains dominant market positions:

Revenue Mix and Future Orders

NRB Bearings generates the majority of its revenue from India, while exports contribute approximately 24% of total revenue across 43 countries. The company has secured over Rs. 600 crore worth of lifetime orders linked to EV and hybrid vehicle platforms, providing long-term revenue visibility though benefits will be realized gradually over several years.

Key Concerns Affecting Stock Performance

High Promoter Pledging

As of September 2025, 57.84% of promoter shares are pledged, creating investor discomfort due to concerns around financial leverage and potential forced selling during adverse market conditions.

Modest Growth Metrics

Despite strong market position, growth rates remain moderate:

Operational Challenges

The company faces a cash conversion cycle of 332 days, indicating significant cash tied up in working capital. Additionally, institutional confidence has declined with DII shareholding dropping from 17.08% in September 2024 to 12.27% in September 2025.

Customer Concentration Risk

Customer concentration has increased significantly, with the top customer contributing 12% of revenue (up from 4% earlier) and the top five customers accounting for 26% of total revenue.

Q2FY26 Financial Performance

The company reported steady financial performance in Q2FY26:

Financial Health Indicators

Key financial metrics demonstrate the company's fundamental strength:

The stock trades at a significant discount to industry multiples, reflecting market concerns despite solid operational metrics.

Market Outlook

NRB Bearings remains technically strong with leadership in critical component categories and confirmed participation in future EV and hybrid platforms. However, the combination of high promoter pledging, modest revenue growth, volatile profits, stretched working capital, declining institutional ownership, and rising customer concentration has collectively prevented meaningful stock returns. The market appears to be waiting for clearer signs of sustained growth, stronger cash flows, and improved balance sheet comfort before re-rating the stock.

NRB Bearings Limited promoter Harshbeena Sahney Zaveri has disclosed the creation of an additional pledge on 80,00,000 equity shares on January 21, 2026, under Regulation 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The pledge has been created in favor of Tata Capital Limited, a non-banking financial company.

Pledge Details and Impact

The additional pledge brings the total number of encumbered shares held by Harshbeena Sahney Zaveri to 3,29,19,877 equity shares, representing 33.97% of the company's total share capital. Prior to this transaction, the promoter had already pledged 2,49,19,877 shares, constituting 25.71% of the total share capital.

Promoter Holdings Overview

Harshbeena Sahney Zaveri holds 4,02,07,885 equity shares in NRB Bearings Limited, representing 41.48% of the total share capital. With the latest pledge, 81.87% of her total shareholding is now encumbered. The encumbered shares represent more than 20% of the company's total share capital, triggering mandatory disclosure requirements.

Financial Security and Rationale

The total value of all encumbered shares held by the promoter was approximately Rs. 806.64 crore as of January 20, 2026, calculated using the weighted average price of Rs. 245.03 from BSE. The total loan amount against which the shares have been pledged is approximately Rs. 290.39 crore, maintaining a security cover ratio of 2.78:1.

The promoter stated that the top-up pledge was created due to recent volatility in the stock market, with the intention of maintaining a substantial buffer with the lender to enable focus on business operations. The borrowed amount is intended for personal use by Trilochan Singh Sahney Trust 1, including towards family settlement.

Other Promoter Holdings

Other promoters and persons acting in concert (PACs) maintain their existing shareholdings without any changes in encumbrance status. Trilochan Singh Sahney Trust – 1 holds 67,85,123 shares (7.00% of share capital) with 37,80,123 shares (3.90%) remaining encumbered from previous arrangements.

The disclosure was filed with both BSE Limited and National Stock Exchange of India Limited on January 23, 2026, in compliance with regulatory requirements for substantial shareholding changes and encumbrance creation.