Any current/future new fundraising through debt or equity?

NRB Bearings Limited has discussed planned capex of around INR270 crores to INR300-400 crores over the next 2-3 years. The company's typical debt-equity ratio is about 0.47 to 0.5, suggesting some portion of capex may be funded through debt. No explicit mention of upcoming fresh fundraising through new debt or equity in the transcript. The management highlighted strong credit rating of AA- from CRISIL, enabling access to optimal cost of capital for strategic opportunities like JVs and acquisitions. The capex and growth plans are being supported through internal accruals, partnerships, and prud

Any current/future capex/capital investment/strategic investment?

NRB Bearings has sanctioned INR 270 crores capex, staggered over 2-2.5 years. INR 110 crores of this capex is allocated to the JV with Unitec Group, expected to begin significant production in 15-18 months. Capex includes investments in advanced machinery (e.g., heat treatment, grinding) with varying lead times. The company focuses on continuous capacity addition through process improvements and partnerships, rather than massive one-time expansions. Additional capex beyond the current INR 270 crores depends on future partnerships to support growth beyond the INR 2,500 crores revenue target by

Future growth expectations in sales/revenue/volumes?

NRB Bearings aims for a top-line target of around INR 2,500 crores by 2031, implying a CAGR of around 12-13%. Growth plans include entering newer areas such as aerospace, construction equipment bearings, and expanding industrial segments. The company prefers prudent guidance, aiming to outperform conservative estimates rather than giving aggressive targets. Growth strategy includes alliances and JVs (e.g., Unitec JV) to penetrate newer segments quickly. Current capacities are full; upcoming capex of INR 270-400 crores over 2-3 years is planned to add capacity and drive incremental sales. The c

Future growth expectations in earnings/operating earnings/profits/EPS?

NRB Bearings targets a top-line of around INR 2,500 crores by 2031, implying a CAGR of approximately 12%-13% from current levels. The company prefers prudent and conservative guidance, aiming to outperform internally rather than give aggressive public targets. EBITDA margins are expected to be maintained in the 18%-20% range despite growth and diversification into newer, potentially lower-margin segments. Aerospace business is targeted to have ~30% EBITDA margin, while high-volume segments like wheels may be lower (~16%-17%), balancing overall margins. Profit after tax has shown strong growth

Current/ Expected Orderbook/ Pending Orders?

Mahant Tool Room acquisition brought a ready order book conservatively valued at around INR 25 crores after due diligence. Mahant was unable to fulfill a large scale-up of orders, representing growth opportunity post-acquisition. Mahant specializes in designing and manufacturing sophisticated machine parts including landing gears, mission-critical fuel injection parts, and rod ends. No specific mention of the overall current or expected order book for NRB Bearings Limited beyond Mahant's order book. Company emphasizes diversification across automotive, industrial, aerospace, and defense sector

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NRB Bearings LtdQ4 FY27Auto Components

NRB Bearings Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹429P/E: 22.8Market Cap: ₹3.4K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→NRB Bearings aims for a top-line target of around INR 2,500 crores by 2031, implying a CAGR of around 12-13%.
→Growth plans include entering newer areas such as aerospace, construction equipment bearings, and expanding industrial segments.
→The company prefers prudent guidance, aiming to outperform conservative estimates rather than giving aggressive targets.
→Growth strategy includes alliances and JVs (e.g., Unitec JV) to penetrate newer segments quickly.
→Current capacities are full; upcoming capex of INR 270-400 crores over 2-3 years is planned to add capacity and drive incremental sales.
→The company focuses on profitable customer segments and plans continuous capacity improvements with tech advancements and automation.
→EBITDA margins expected to be maintained between 18-20% despite growth, indicating quality-driven expansion.
→Growth is agnostic to automotive sub-segments (ICE, hybrid, EV) with emphasis on volume and higher market share in existing product lines.

Margin guidance

Category 3

→NRB Bearings targets a top-line of around INR 2,500 crores by 2031, implying a CAGR of approximately 12%-13% from current levels.
→The company prefers prudent and conservative guidance, aiming to outperform internally rather than give aggressive public targets.
→EBITDA margins are expected to be maintained in the 18%-20% range despite growth and diversification into newer, potentially lower-margin segments.
→Aerospace business is targeted to have ~30% EBITDA margin, while high-volume segments like wheels may be lower (~16%-17%), balancing overall margins.
→Profit after tax has shown strong growth recently: 44% YoY increase for Q3 FY '26 and 27% for the 9-month period.
→EPS growth aligns with EBITDA and profit growth trends, supported by disciplined capital expenditure (~INR 300-400 crores in next 2-3 years) and enhanced operational efficiencies.
→The company’s strategy emphasizes reliable, sustainable, and diversified profitable growth rather than aggressive short-term jumps.

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Fundraise plans

Yes

→NRB Bearings Limited has discussed planned capex of around INR270 crores to INR300-400 crores over the next 2-3 years.
→The company's typical debt-equity ratio is about 0.47 to 0.5, suggesting some portion of capex may be funded through debt.
→No explicit mention of upcoming fresh fundraising through new debt or equity in the transcript.
→The management highlighted strong credit rating of AA- from CRISIL, enabling access to optimal cost of capital for strategic opportunities like JVs and acquisitions.
→The capex and growth plans are being supported through internal accruals, partnerships, and prudent capital allocation rather than aggressive new fundraising.
→Overall, while capital expenditures are significant, there is no specific announcement or indication of immediate new equity or debt fundraising.

Order book

→Mahant Tool Room acquisition brought a ready order book conservatively valued at around INR 25 crores after due diligence.
→Mahant was unable to fulfill a large scale-up of orders, representing growth opportunity post-acquisition.
→Mahant specializes in designing and manufacturing sophisticated machine parts including landing gears, mission-critical fuel injection parts, and rod ends.
→No specific mention of the overall current or expected order book for NRB Bearings Limited beyond Mahant's order book.
→Company emphasizes diversification across automotive, industrial, aerospace, and defense sectors with steady growth in order inflows.
→JV and partnership initiatives such as Unitec provide faster customer approvals and access to new technologies and markets, potentially expanding order book.
→Management maintains focus on steady, resilient growth rather than giving aggressive forward guidance.

Capex plans

Yes

→NRB Bearings has sanctioned INR 270 crores capex, staggered over 2-2.5 years.
→INR 110 crores of this capex is allocated to the JV with Unitec Group, expected to begin significant production in 15-18 months.
→Capex includes investments in advanced machinery (e.g., heat treatment, grinding) with varying lead times.
→The company focuses on continuous capacity addition through process improvements and partnerships, rather than massive one-time expansions.
→Additional capex beyond the current INR 270 crores depends on future partnerships to support growth beyond the INR 2,500 crores revenue target by 2031.
→The Mahant Tool Room acquisition aims to scale manufacturing for aerospace orders.
→Capex is geared to support entry into new segments such as aerospace, construction equipment, industrial machinery, and maintain EBITDA margins.
→Asset turns are expected around 1x, indicating potential turnover of ~INR 400 crores from current capex.

How does NRB Bearings Ltd rank vs peers in Auto Components?

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1NRB Bearings Ltd

Rev 3Mar 3

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