NRB Bearings Ltd.
Management expects to improve EBITDA Margin by ~200+ bps.
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1. Key Highlights:
2. Company Chart Analysis:
*Comparison charts are Indexed*
NRB Bearings Ltd. Performance
NRB Bearings Ltd. vs. NSE Nifty
NRB Bearings Ltd. vs. NSE Smallcap
3. About the Company:
NRB Bearings Ltd., established in 1965, is a leading Indian manufacturer of needle roller bearings and other friction solutions. Headquartered in Mumbai, the company caters to both automotive and industrial sectors, supplying to major OEMs in India and globally. With a strong presence through multiple manufacturing units across India and Thailand, NRB is known for its precision engineering, wide product portfolio, and technological expertise. It also owns subsidiaries like SNL Bearings and has a dominant market share in the domestic needle bearings segment.
3.1 Business Segments:
Automotive Segment: Manufactures and supplies needle roller bearings and other friction solutions to major two-wheeler, passenger vehicle, and commercial vehicle OEMs.
Industrial Segment: Provides customized bearing solutions for industrial machinery, railways, and other non-automotive applications.
Aftermarket Segment: Caters to the replacement market with a wide range of standard bearings and components distributed through an extensive network.
Export Segment: Serves international clients across Europe, Asia, and North America with high-precision bearing products.
3.2 Company Journey:
3.3 Company Structure:
3.4 Products:
3.5 Domestic Presence:
3.6 Domestic Customer:
3.7 International Presence:
3.8 International Customers:
3.9 Manufacturing Facilities:
4. Management Overview:
4.1 KMP's Remuneration
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5. Revenue Breakdown:
6. Company’s Financial Analysis:
6.1 REVENUE:
The Revenue has grown at a CAGR of ~12.32% in the past 7 years.
6.2 GROSS PROFIT:
The Gross Profit has grown at a CAGR of ~12.3% in the past 7 years.
6.3 EBITDA:
EBITDA has grown at a CAGR of 16.7% in past 7 years. Management expects the margin to reach 20%+ level.
This would be driven by a combination of operating leverage from higher volumes (12-14% growth), ongoing cost optimization projects (solar, logistics, automation), and an improving product mix with a focus on next-generation platforms for global OEMs.
6.4 Net Profit:
Net Profit has grown at a CAGR 39.2% in past 7 years.
6.5 Balance Sheet:
6.6 Common-Size Balance Sheet:
6.7 Cash Flow Analysis:
6.8 Cash Conversion Cycle:
7. KEY RATIOS:
8. Shareholding Pattern:
FIIs have reduced their holdings.
DIIs have reduced their holdings in the past 2 quarters.
Public holding is picking up.
9. SWOT ANALYSIS:
10. Concall Analysis:
10.1 Q4 FY25 (Year-on-Year):
Revenue from Operations: ₹1,199 Cr (+9.5% YoY).
EBITDA: ₹224 Cr (+15.5% YoY).
EBITDA Margin: 18.4% (up 100 bps from 17.4% in FY24)
Q4 FY25 EBITDA Margin: 19.2%.
Net Profit (Excl. Exceptional Items): ₹121 Cr (+31.5% YoY)
Note: FY24 PAT included a ₹178 Cr exceptional gain from Thane land sale. FY25 PAT affected by an exceptional loss (settlement-related).
Operational Recovery: Management confirms full normalization post the May 2023 Waluj fire incident, which had impacted revenue (₹90 Cr) and assets
(₹55 Cr, later covered by insurance).Promoter Pledging: 100% release of pledged shares (1.15 crore shares), reinforcing promoter confidence and improved corporate governance.
10.2 Segment-wise Performance and Future Outlook:
A. Domestic & International OEM Business
I) FY25 Revenue Mix:
Commercial Vehicle & Ancillaries – 33%
Two-Wheelers – 28%
Passenger Vehicles & Ancillaries – 16%
Aftermarket – 12%
Industrial (Agri, Off-highway, etc.) – 11%
II) International Business (~25% of revenue):
Continued strong demand from Global Truck and Defense sectors.
Growth supported by supplying next-gen platforms to global OEMs (BMW, Stellantis, DANA, Magna, ZF, Daimler, Volvo).
IV) Business Model Strength:
No single segment >33%, no customer >10% of revenue.
Top 10 customers contribute 49% – a well-de-risked portfolio.
10.3 Cost Structure & Margins:
I) EBITDA Margin:
Improved from 17.4% in FY24 to 18.4% in FY25.
Q4 FY25 margin: 19.2%, showcasing improved operating leverage.
II) Efficiency Initiatives:
Working Capital: Improved by ₹30 Cr post-recovery.
Cost Optimization Measures: Captive solar power project. Logistics efficiency via warehouse consolidation. Automation & robotization in manufacturing processes.
10.4 Capital Management & Balance Sheet:
I) Leverage Position:
Financially conservative with historically low leverage.
Internal accruals sufficient to fund upcoming capex – minimal dilution risk.
II) Capex Plan:
₹200 Cr expansion underway to supplement current monthly capacity of ₹110 Cr.
Business nominations worth ₹400 Cr already secured, needing additional capacity in the next 3–5 years.
III) Divestments:
Realized a ₹178 Cr gain from Thane land sale in Q3 FY24.
10.5 Management Guidance & Strategic Outlook:
Revenue Growth Guidance: 12–14% (Consolidated).
EBITDA Margin Guidance: Targeting 20%+.
Standalone Operating Margin: Expected to return to pre-fire levels.
11. Growth Drivers
12. Competitors in the Market:
Timken India Ltd
Part of The Timken Company (USA), Timken India specializes in tapered roller bearings and power transmission products. It serves sectors such as railways, automobiles, heavy industries, and agriculture.
SNL Bearings Ltd
A subsidiary of NRB Bearings itself, SNL produces needle roller bearings and other precision components. Though smaller in size, it caters to similar OEM and aftermarket segments in India.
Galaxy Bearings Ltd
A niche player in the bearing segment, Galaxy Bearings manufactures taper roller bearings and cylindrical roller bearings, primarily used in the automotive and industrial machinery sectors.
Bimetal Bearings Ltd
Part of the Amalgamations Group, Bimetal Bearings produces engine bearings, bushings, and thrust washers, mainly for automotive OEMs. It focuses on anti-friction metal parts for internal combustion engines.
Thank You So Much For Reading!!
Researched By- Naresh, Mayank and Vaibhav
All information is sourced from the company's annual reports, Press Release, News Articles, GoIndiastocks.in, Screener.in, industry reports, and Economy Outlook reports.
Disclaimer: We do not recommend buying or selling any stock. You should consult your financial advisor before buying or selling any financial instrument.
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