NRB Bearings Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

NRB Bearings Ltd trades at ₹535, in a confirmed uptrend and 19 weeks into that stage. That is +41.0% against its own 200-day average. It sits at 100% of a 52-week range of ₹228 to ₹535. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 30 straight weeks.

Today the stock is in a confirmed uptrend — week 19 of stage 2, confirmed. At ₹535 it trades +41.0% versus its 200-day average and sits at 100% of its 52-week range (₹228–₹535).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +363% while the NIFTY 500 moved +262% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 30 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

NRB Bearings Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: EARLY_EXPANSION. Still open: A reported revenue slowdown alongside delayed plant commissioning or no Mahant revenue contribution would break the capacity-and-diversification thesis. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. NRB is converting automotive engineering into industrial and aerospace revenue, but the valuation already assumes delivery of the new capacity and order pipeline.

From the numbers. The weekly PE snapshot is 28.4x versus a 22.6x median and is classified as riding the wave. The deeper normalized read is less favorable: trailing PE is 31.5x at the 85th percentile and normalized PE is 32.9x at the…

From the price. Price stage 2, week 19 — above its 200-day line, relative strength rising.

From the research. NRB is converting automotive engineering into industrial and aerospace revenue, but the valuation already assumes delivery of the new capacity and order pipeline.

🚨 Where they disagree. The weekly PE snapshot is 28.4x versus a 22.6x median and is classified as riding the wave. The deeper normalized read is less favorable: trailing PE is 31.5x at the 85th percentile and normalized PE is 32.9x at the 89th percentile. Margin normalization raises, rather than lowers, the normalized PE because current margin is already above its normalized level. This is a re-rating that needs earnings delivery.

What is proven. NRB is converting automotive engineering into industrial and aerospace revenue, but the valuation already assumes delivery of the new capacity and order pipeline.

What is not proven yet. A reported revenue slowdown alongside delayed plant commissioning or no Mahant revenue contribution would break the capacity-and-diversification thesis.

🚨 What would change our mind. A reported revenue slowdown alongside delayed plant commissioning or no Mahant revenue contribution would break the capacity-and-diversification thesis.

🚨 Layer 1 read, 22 August 2026 — DROP. The bearings business is genuinely growing, but you are paying a top-of-range price and the promoter just sold 6.5% without explaining why. Sales rose 19.4% and profit 15.2% in the June quarter, and the underlying operating profit has almost doubled since late 2022 as the mix moves toward industrial and aerospace bearings — management says the industrial slice is now 14% of the business and grew 34%. The catch is price and proof: the shares trade at 31.5 times earnings, near the top of their own ten-year range, and adjusting earnings to a normal margin makes that WORSE, not better, because today's margin is already above normal — so there is no hidden cheapness. Meanwhile the headline profit rebound flatters: I checked the filings and the March 2025 'loss' came from a MINUS ₹45 crore non-operating item in a quarter whose…

What would change Layer 1’s mind. Sharpened from the timeline's line and from the capacity driver's kill-switch: if the September 2026 quarter shows revenue growth slowing below 10% year-on-year while operating margin holds under 17%, with still no Mahant revenue disclosed and no reconciled capacity-to-revenue bridge, the re-rating has no earnings to grow into and this held position should be exited rather than merely ranked down. On the other side, a disclosed explanation of the promoter sale plus a first quarter of reported…

CIO read, 22 August 2026 — RETAIN. HELD (defended slot) · forward-asymmetry 33/100 · CONTESTED. The business is growing, but the shares trade at 31.5 times earnings at the 86th percentile of their own history, and normalising margins makes the valuation worse. A judged 15% EPS path falls short of the model's 19.1% requirement; the SPENT rating keeps it contested.

The test written in advance. A reported revenue slowdown alongside delayed plant commissioning or no Mahant revenue contribution would break the capacity-and-diversification thesis. — the thesis as written as stated by the next result.

The test written in advance. Valuation requires earnings delivery — Valuation requires earnings delivery TTM earnings growth below 10% while the PE snapshot remains above 28x. by the next result.

The test written in advance. Management roadmap inconsistency — Management roadmap inconsistency Next concall provides a reconciled FY31 target and capex-to-revenue bridge. by the next result.

What the company does. The latest quarter delivered revenue growth and reported profit growth while operating margin eased from the preceding quarter; this is an execution print, not proof that the full capex cycle has converted. Industrial business has moved higher in management's latest description, while aerospace and defense orders offer a second route to mix expansion. The stock trades at a valuation that remains elevated even after normalizing earnings, so future delivery must justify the multiple.

🚨 What the surface reading misses. The surface reading is: Trailing PE at the upper end of history reads expensive. The research reads it further: Normalized PE is 32.9x at the 89th percentile versus trailing PE of 31.5x at the 85th percentile because current operating margin of 17.2% is above normalized operating margin of 16.5%.

🚨 What the surface reading misses. The surface reading is: High operating cash conversion reads as earnings backed by cash. The research reads it further: The cash story is growth working capital plus capex: five-year working-capital absorption was ₹351 Cr, capex was ₹321 Cr, and FY26 debt fell by ₹33 Cr.

Lever 2 · Value-added mix — BUILDING. Industrial business was described as 14% of total business and grew 34% in the latest call. What proves it keeps working: Industrial-bearing mix expansion. It stops working if Industrial revenue remains undisclosed or fails to grow after the Aurangabad plant enters production.

Lever 6 · Order-book wins — BUILDING. Management described a ₹270 Cr capex program with ₹60 Cr invested and another ₹100 Cr ordered or being ordered. What proves it keeps working: Capacity deployment. It stops working if Commissioning slips beyond the stated April 2027 plant target or capacity does not lift sales.

Lever 15 · Market-share gains — BUILDING. Management says common chassis, steering, and transmission applications across ICE, hybrid, and EV represent 70% of business. What proves it keeps working: Automotive platform continuity. It stops working if Automotive platform launches are delayed or pricing cannot offset electricity, logistics, currency, and petroleum-cost pressure.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

NRB Bearings Ltd reported ₹370 Cr of revenue in the Jun 26 quarter, +19.4% year on year. That is the 9th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.1% a year. The last full year, FY26, came in at ₹1,335 Cr. The last four reported quarters add to ₹1,395 Cr.

Why this happened. The Capex Inflection Point applies because machinery deployment and commissioning are the dated bridge between ambition and output. The August call identified Aurangabad commissioning and first production as the next quarter's watch item, so the catalyst remains a monitorable rather than a completed benefit.

FY26 revenue came in at ₹1,335 Cr (+11.3% on the year), capping 10 years at 7.1% compound. The latest quarter (Jun 26) printed ₹370 Cr, +19.4% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +14.4% growth against the decade's 7.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +14.3% over the last 4 quarters against +12.1%/yr over the last 8 — stabilising; TTM profit +66.7% vs −22.4%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

NRB Bearings Ltd's operating margin is 17.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0% to 20.0%. The current quarter sits inside that band.

Why this happened. The Value Chain Climb applies if industrial products convert from a stated mix ambition into reported sales. The current evidence is the latest industrial mix statement and the Unitec cylindrical-roller project; the off-switch is inconsistent mix reporting or no revenue conversion after commissioning.

The latest quarter's operating margin is 17.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0%–20.0%.

Why the margin moved: operating margin went +0.7 pp year on year while gross margin went −1.6 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

NRB Bearings Ltd earned ₹38.0 Cr of net profit in the Jun 26 quarter, +15.2% year on year. Full-year FY26 profit was ₹146 Cr. The 10-year compound rate is 13.0%. That is 10.3% of the quarter's revenue. The same quarter a year earlier earned ₹33.0 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹38.0 Cr, +15.2% year on year. On the full year, FY26 printed ₹146 Cr (+78.0%), and the 10-year compound rate is 13.0%.

Why profit moved: revenue contributed +19.4% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +20.3% vs revenue +14.4%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 94% of NRB Bearings Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹241 Cr of operating cash against ₹146 Cr of profit. After ₹104 Cr of capital spending, ₹137 Cr was left as free cash.

FY26: operating cash of ₹241 Cr against reported profit of ₹146 Cr, leaving free cash of ₹137 Cr after ₹104 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 94% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 94%: the cash cycle stretched 66 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

NRB Bearings Ltd's cash conversion cycle runs 281 days in FY26, up from 215 days in FY21. Capital spending ran ₹233 Cr over the last 3 years. At FY26 sales of ₹1,335 Cr each day of that cycle holds about ₹3.7 Cr, so roughly ₹1,028 Cr sits inside the business at any moment.

FY26: debtors at 67 days, inventory at 302 days — roughly 9.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 281 days, looser than FY21's 215.

The full loop: cash goes out to suppliers and production on day 0; stock waits 302 days to sell; customers pay about 67 days after that; and suppliers themselves are paid at 88 days — netting out to the 281-day cycle.

In money terms: at FY26 sales of ₹1,335 Cr, each day of the cycle holds about ₹3.7 Cr — so the 281-day loop keeps roughly ₹1,028 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹233 Cr over the last 3 fiscal years against ₹148 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹43.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

NRB Bearings Ltd earns a ROCE of 18% in FY26. That is up from a trough of 9% in FY20. Return on invested capital clears the cost of that capital by +0.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 10.9% net margin on 0.98× asset turns.

FY26 ROCE is 18%, recovered from a FY20 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 10.9% net margin × 0.98× asset turns × 1.41× balance-sheet leverage ≈ 15.1% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 12.9% − 12.0% = a +0.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

NRB Bearings Ltd carries total debt of ₹154 Cr against shareholder equity of ₹983 Cr as of Mar 26, a debt-to-equity of 0.16 — effectively unlevered. On the annual view that ratio went from 0.50 in FY22 to 0.16 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹154 Cr against shareholder equity of ₹983 Cr — a debt-to-equity of 0.16. On the annual view, debt-to-equity went from 0.50 (FY22) to 0.16 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 6.0 points of NRB Bearings Ltd over 8 quarters, the biggest move on the register. That takes promoters to 44.7% of the company. Foreign institutions moved +5.2 points over the same window, to 18.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −6.0 points over 8 quarters to 44.7%; Foreign institutions: +5.2 points over 8 quarters to 18.9%; Domestic institutions: −3.7 points over 8 quarters to 13.8%.

Why the register moved: rotation — foreign institutions +5.2 points against domestic institutions −3.7 points over 8 quarters, with promoters −6.0 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

NRB Bearings Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

NRB Bearings Ltd trades at 36.0× P/E, at the pricey end of its own range (93rd percentile). Its long-run median P/E is 23.0×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 36.0× is at the pricey end of its own range (93rd percentile), against a long-run median of 23.0× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +79.6% against a +91.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +30.9%/yr price move, ~+12.1%/yr came from earnings growth and ~+18.8 pp from the multiple (expanding); over 10y, of the +14.4%/yr price move, ~+13.5%/yr came from earnings growth and ~+0.9 pp from the multiple (roughly flat). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 24 August 2026 price, NRB Bearings Ltd was paying for profit growth of about 19.1% a year. Profit itself has compounded 13.0% a year over the past 10 years. Today the market pays 36.0× P/E, the 93rd percentile of its own 11-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is above what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 24 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 28 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

NRB Bearings Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 4 quarters ago at −63.9% and has held its recovery at +66.7%, ROCE lifting at 20.7%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

50.7/100 — rank 4 of 8 in Bearings · 100% evidence confidence

NRB Bearings Ltd scores 50.7 out of 100 against the 8 companies it is compared with in Bearings, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19.4 + 10.3 + 4.9 + 16.1 = 50.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What NRB Bearings Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Long-Term Revenue Target Raised Without Full Reconciliation · 10 August 2026. In May 2026, management characterized 2,500 crores over a five-year timeframe as an increasingly concrete goal. In Aug 2026, management pointed to 2,730 crores and a possible 3,000 crores by 2031, representing a material increase of approximately 9% to 20%; while it attributed the change to trailing 12-month growth, it did not reconcile why the previously concrete target had become too low or establish whether 2,700 or 3,000 crores is the new formal target.

Industrial Segment Revenue Mix - Inconsistent Data Across Consecutive Calls · 11 May 2026. In the Feb 2026 call, management cited the industrial segment at roughly 8% to 10% of revenue and growing toward 11% to 12%, but the May 2026 full-year FY26 call described the same segment as approximately 14% to 15%. This disconnect is further compounded by the Nov 2025 call having already reported industrial at 15% for H1 FY26, making the Q3 FY26 figure of 8% to 10% anomalous relative to both the prior and subsequent reporting periods. With industrial diversification as a central investment thesis for NRB, management has not explained the sharp intra-year swings in this metric across three consecutive calls.

🚨 Total Capex Programme - Announced Second Phase Goes Missing · 11 May 2026. In the Nov 2025 call, management described a total capex roadmap of INR 500 crores comprising the Board-approved INR 200 crores and an additional INR 250 to INR 300 crores to be deployed over five years, explicitly linking this plan to achieving the INR 2,500 crore revenue target. By the May 2026 call, management described the total capex announcement as INR 240 crores with no reference to the additional second phase and no explanation for where the planned INR 250 to INR 300 crore follow-on tranche stands. The revenue target was simultaneously described as increasingly concrete, creating an unaddressed analytical gap between the stated growth goal and the disclosed capital plan.

Industrial Revenue Share Reset · 13 February 2026. In the November 2025 call, management stated that the industrial segment contributed 15% of consolidated revenue and was moving toward a 20% share. However, in the February 2026 call, the baseline for this segment was revised downward to 8-10%, with management stating they are now aiming to reach only 11-12%, despite claiming the segment is growing faster. Earlier call (Nov 2025): “On consolidated level, 31% was two, three-wheelers, 15% was industrial... Our industrial segment is now moving closer and closer to the 20% mark as well.” Later call (Feb 2026): “industrial is going faster, but out of the total pie, it is roughly been 8 to 10% and now starting to move faster to 11 12.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions