NRB Bearings: An EV Supply Chain Play Worth Watching

NRB Bearings is a precision engineering leader making ball and roller bearings for passenger vehicles, commercial vehicles, two- and three-wheelers, industrial machinery, and off-highway applications. Though not an EV-only play, its components are critical in electric drivetrains, motors, and wheel assemblies, giving it meaningful exposure to India's EV supply chain without over-concentration risk. Financially, the company has staged a strong recovery. In FY26, consolidated revenue from operations rose 11% to ₹1,335 crore, EBITDA grew 19% to ₹267 crore, and EBITDA margin expanded to 19.5%. Profit after tax (PAT) surged 77% to ₹146 crore, with ROE at 15% and ROCE at 20%, signalling efficient capital deployment. The board approved a total dividend of ₹5.70 per share for FY26, the highest in recent years. Momentum continued in Q1 FY27. Consolidated revenue from operations grew 19.2% to ₹370 crore, PAT rose 15% to ₹38 crore, and EBITDA margin held healthy at 17–19%. EPS improved to ₹3.80. Management reiterated an “EV-agnostic” strategy, focusing on applications common to EV, ICE, and hybrids such as chassis and steering systems, while guiding margins conservatively at 18–20%. For shareholders, this is a constructive setup. The company benefits from structural EV tailwinds without being hostage to a single segment. The sharp PAT jump, double-digit revenue growth, and robust ROCE/ROE indicate operating leverage and pricing power. Margin expansion and record dividends underscore cash generation and shareholder orientation. Risks include auto cyclicality, input cost volatility, and execution on capacity expansions at Jalna and Chikalthana, expected to contribute from FY27. Overall, NRB Bearings offers a balanced mix of growth, profitability, and downside protection, making it a compelling EV-adjacent holding for long-term investors.