NRB Bearings Q1 FY27 Results (NSE: NRBBEARING)
Signal: Growth reaccelerated
The read
The key inflection is revenue growth accelerating to 19.2% YoY from 13.1% in Q4FY26, while EBITDA margin at 18.7% is above the 17% level in Q1FY26; however, gross margin compressed 160bps YoY despite raw material cost falling to 37.5% of revenue, and the ₹265 lakh insurance gain means reported PAT growth of 14.8% is not entirely recurring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹369.53 Cr | +19.2% | -0.7% |
| EBIT | ₹50.78 Cr | N/A | N/A |
| Net profit | ₹36.84 Cr | +14.8% | N/A |
| EPS | ₹3.8 | +14.8% | N/A |
| EBIT margin | 18.7% |
P&L walk
Consolidated revenue increased 19.2% YoY to ₹36,953 lakh, but gross margin fell 160bps to 60.2% as the filing does not disclose the driver; EBITDA margin was 18.7%, while PAT attributable to owners rose 14.8% to ₹3,684 lakh, partly supported by a ₹265 lakh insurance gain.
Segments
The company reports one operating segment, Bearing; the consolidated group added ₹4,964 lakh of revenue over standalone revenue, but consolidated PAT attributable to owners of ₹3,684 lakh was only ₹207 lakh above standalone PAT of ₹3,477 lakh.
Key positives
- Consolidated revenue was ₹36,953 lakh, up 19.2% YoY, the strongest YoY growth in the recent quarterly series after 17.6% in Q3FY26.
- EBITDA margin was 18.7%, above 17% in Q1FY26 and 18% in Q4FY26, while employee and other expenses grew 15.4% YoY versus revenue growth of 19.2%.
- Finance costs declined 29.5% YoY to ₹201 lakh, supporting operating-to-profit conversion.
- MTR acquisition was completed through the wholly owned subsidiary, and the subsidiary has secured AS9100D aerospace certification.
- The company is developing a new cylindrical roller bearing range through its Unitec joint venture structure.
Key concerns
- Gross margin compressed 160bps YoY to 60.2% even though raw material cost declined to 37.5% of revenue from 40.5%; the filing does not explain the margin absorption.
- The ₹265 lakh insurance gain represented 5.4% of consolidated profit before exceptional items and inflated current-quarter PAT; it is non-recurring.
- Consolidated PAT attributable to owners grew 14.8% YoY, below standalone PAT growth of 31.8%, indicating that group additions are not yet translating proportionately into shareholder earnings.
- Depreciation increased 41.4% YoY to ₹1,835 lakh, materially faster than revenue growth, although the filing does not provide the asset base for a capex-quality assessment.
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