NRB Bearings Q2 FY27 Results (NSE: NRBBEARING)
Signal: Steady quarter
The read
The key inflection is weaker earnings conversion despite 17.6% YoY revenue growth: gross margin fell 16bps, depreciation rose 47.1%, other income fell 63.6%, and PAT declined 12.9%; H1 operating cash flow also fell 27.0% YoY as working capital absorbed cash.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹342.01 Cr | +17.6% | +6.9% |
| Net profit | ₹31.76 Cr | -12.9% | |
| EPS | ₹3.28 | -12.8% | |
| EBIT margin | N/A |
P&L walk
The consolidated financial-results table is not included in the supplied filing text; consolidated P&L trends therefore cannot be assessed from the available disclosure.
Segments
The company reports one operating segment, Bearing, so no segment-level driver or drag is disclosed.
Key positives
- Revenue from operations rose 17.6% YoY to ₹34,201 lakh and 6.9% QoQ, extending the recent growth trajectory.
- Employee cost rose only 6.8% YoY to ₹3,785 lakh versus 17.6% revenue growth, while employee cost intensity declined to 11.1% from 12.2%.
- PPE increased to ₹32,494 lakh and CWIP to ₹1,740 lakh, while depreciation rose 47.1% to ₹1,570 lakh, providing evidence that the expanding asset base is beginning to enter the cost base.
Key concerns
- PAT fell 12.9% YoY to ₹3,176 lakh despite 17.6% revenue growth, showing weaker earnings conversion.
- Raw material and inventory cost increased to 46.6% of revenue from 46.4% YoY, while gross margin declined 16bps to 53.4%; the filing does not identify the cause.
- H1 operating cash flow declined to ₹6,390 lakh from ₹8,754 lakh, with ₹2,276 lakh absorbed by receivables and ₹2,800 lakh by inventories.
- Finance costs rose 75.9% YoY to ₹146 lakh, while borrowings increased to ₹5,959 lakh from ₹3,257 lakh at 31 March 2026.
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