NRB BearingsQ1 FY27
NRB Bearings Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹469P/E: 31.5Market Cap: ₹4.7K CrSector: Auto Components
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →The company has demonstrated a 14.28% compound annual growth rate (CAGR) over the last 12 months.
- →Using this growth rate as a baseline, revenue is expected to reach around INR 2,700 crores by FY31.
- →The aspirational vision for FY31 is around INR 3,000 crores, considering ongoing new product introductions and market traction, especially in aerospace and other verticals.
- →Growth momentum in FY27 started strong with 19% growth in Q1; management indicates potential to maintain 15%-20% growth for the full year.
- →New business wins, such as the Make in USA Corvette program and aerospace orders, drive upward growth potential.
- →Investment in capex of INR 270 crores is expected to support increased sales, with INR 100 crores capex translating roughly to INR 130 crores additional revenue.
- →The company prefers conservative long-term guidance based on actual performance rather than speculative forward-looking estimates.
Margin guidance
Category 3- →NRB Bearings has demonstrated strong recent growth with a trailing 12-month revenue growth of 14.38%.
- →The company expects to likely achieve revenues around INR 2,700 crores by FY31 based on compounding past growth.
- →There is optimism about reaching closer to INR 3,000 crores revenue in the future due to new product additions and traction in aerospace and multiple verticals, though the company avoids giving explicit forward guidance.
- →EBITDA and PAT have shown healthy growth, with standalone PAT rising 31.7% YoY and EBITDA by 21.7% YoY in Q1 FY27.
- →Margins are expected to be steady around 18-20% annually, emphasizing financial discipline over quarterly fluctuations.
- →Aerospace and high-margin niche expansions are expected to boost operating profits long-term.
- →De-risked growth strategy and ongoing capex (INR 270 crores planned) support the profitable growth trajectory.
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Fundraise plans
- →There is no mention of any current or planned fundraising through debt or equity in the provided transcript.
- →The focus is primarily on internal capital allocation, with a disciplined capital allocation strategy emphasized.
- →Capex spending is planned around INR270 crores, with INR60 crores already invested and INR100 crores ordered or being ordered, indicating funding through internal accruals.
- →The company emphasizes financial discipline and prudent capital management while pursuing growth.
- →No indications of plans for new fundraising through equity or debt for expansion or other purposes were stated.
Order book
Yes- →Mahant Tool Room (MTR) current order book: Approximately INR 30 crores; total defense orders including non-aerospace defense ~INR 50 crores.
- →MTR recent acquisition order book: INR 25 crores at acquisition plus additional spherical bearing orders.
- →Lifetime nominated business has grown beyond INR 800 crores, including new US Make in USA business with a peak volume of USD 300,000 (Corvette program).
- →Aerospace breakthrough order: Sukhoi-30 order for plain spherical bearings, a high-margin, specialized product.
- →Expectations for FY27: Some portion of Mahant Tool Room's INR 50 crore order book will convert to revenue.
- →NRB is investing heavily in aerospace and automotive adjacencies with an emphasis on high-margin, precision components.
- →No specific quantification for total pending orders, but growth is linked to ongoing conversions and new product wins in aerospace and automotive verticals.
Capex plans
Yes- →Total capex planned is INR270 crores.
- →INR60 crores already invested; INR100 crores either ordered or in process.
- →Capex utilized to generate approximately INR130 crores in sales per INR100 crores invested.
- →Investment includes INR110 crores towards Unitec JV focusing on industrial cylindrical roller bearings.
- →The Unitec JV plant has shifted location from Hyderabad to Aurangabad; partial facility already purchased.
- →The Aurangabad plant is expected to be commissioned by April 2027.
- →Acquisition of Mahant Tool Room to strengthen aerospace and defense business with operational scale-up.
- →Continued investment in R&D for new product development in emerging segments such as robotics, aerospace, data centers, and high-tech mobility sectors.
- →Strategic focus on high-margin, engineered products leveraging NRB's manufacturing and design capabilities.
How does NRB Bearings rank vs peers in Auto Components?
Pro feature1NRB Bearings
Rev 3Mar 3
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How does NRB Bearings rank in Auto Components?
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