Shares of NRB Bearings Ltd gained on Wednesday after the company outlined plans to expand its presence in aerospace, industrial applications and data centers.
Management said the industrial business, which currently contributes around 11-12% of total sales, is expected to account for more than 20% by 2031 as the company diversifies beyond its core automotive operations.
The stock rose nearly 4% during the session to a high of Rs. 455.25, compared with the previous close of Rs. 438.90. It was trading at Rs. 448.55, giving the company a market capitalisation of Rs. 4,347 crore.
New growth areas in focus
NRB Bearings said it continues to follow an EV-agnostic strategy.
The approach allows the company to supply components across:
- Internal combustion engine vehicles.
- Hybrid vehicles.
- Electric vehicles.
Management identified two segments as emerging growth drivers:
- Aerospace
- Farm equipment
These businesses are expected to make a larger contribution to revenue over the coming years as the company expands its product offerings and presence in specialised engineering applications.
Industrial business target
Industrial applications currently account for around 11-12% of overall sales.
The company wants to more than double that share by 2031.
Management’s target is:
- Current contribution: 11-12%
- Target by 2031: More than 20%
The move is aimed at reducing dependence on the automotive sector and broadening revenue streams.
Entry into data center segment
NRB Bearings also plans to enter the data center segment.
Management sees long-term opportunities arising from investments in digital infrastructure and cooling systems, which require precision engineering components.
Aerospace acquisition
The company recently completed an acquisition in the Aerospace & Defence sector.
According to management, the acquisition is expected to:
- Strengthen technological capabilities.
- Expand the addressable market.
- Increase exposure to specialised and higher-margin engineering applications.
Stock performance
NRB Bearings has delivered strong gains across different periods.
- Past one year: Up 66%
- Year-to-date: Up 65%
- Last six months: Up 63%
- Past one month: Up 37%
- Last five days: Up 22%
Quarterly performance
For Q4 FY26, revenue increased 13% year-on-year to Rs. 372 crore, compared with Rs. 329 crore a year earlier.
EBITDA rose to Rs. 67 crore from Rs. 60.3 crore, an increase of 11%.
Net profit stood at Rs. 42.1 crore, against a loss of Rs. 1.34 crore in the corresponding quarter last year.
Earnings per share improved to Rs. 4.27, from negative Rs. 0.21.
Business profile
NRB Bearings Ltd manufactures friction-reducing bearings and automotive components.
Its product portfolio includes:
- Needle roller bearings
- Cylindrical roller bearings
- Ball bearings
- Related components
The company supplies products to customers in the automotive and industrial sectors.
TL;DR:
NRB Bearings plans to expand into aerospace, farm equipment and data centers while targeting industrial sales of more than 20% of total revenue by 2031. The company recently completed an Aerospace & Defence acquisition and reported higher revenue and profit in Q4 FY26.
AI summary:
- NRB Bearings targets industrial sales above 20% by 2031.
- Aerospace and farm equipment are emerging growth segments.
- The company plans to enter the data center market.
- It recently completed an Aerospace & Defence acquisition.
- Q4 FY26 net profit rose to Rs. 42.1 crore from a loss a year earlier.
