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Sat, 15 Aug 2026
04:02:55 pm
Sat, 15 Aug 2026
04:02:55 pm
Rudransh Sangwan
Published at: August 12, 2026, 5:50 AM
Synopsis
This auto ancillary stock is seeing rising FII interest as revenue grows 19%, while new opportunities in aerospace, electrification and robotics add to its growth plans.
Foreign investors have been steadily increasing their holding in an Indian auto ancillary stock over the past three years, with FII ownership rising from 14.31% in September 2023 to 18.92% in June 2026. The latest quarter saw a sharp increase from 14.69% in March 2026. At the same time, the company is reporting healthy revenue growth and moving into businesses outside its traditional auto exposure. Its work now extends into aerospace and defence, while management is also developing products for robotics, electrification and data centre cooling. The stock was trading at around ₹450 based on the latest supplied market data, with a market capitalisation of ₹4,364 crore and a reported P/E of 29.2.
The business has been manufacturing bearings in India since 1965 and has built a strong position in needle roller bearings. More than 90% of vehicles running on Indian roads use bearings manufactured by the company, according to the supplied company information. Its estimated market share in needle roller bearings is around 60%. The latest quarter also showed consolidated revenue rising 19.2% year on year to ₹370 crore from ₹310 crore, while standalone sales increased 14.7% and EBITDA rose 21.7%. Management is now trying to use its engineering capabilities in newer applications, although some of these businesses are still at an early stage.
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The stock was quoted at ₹450 in the latest supplied market data, with a 52-week high of ₹486 and a low of ₹213. The company has a market capitalisation of ₹4,364 crore and trades at a P/E of 29.2. Its book value is ₹99.3, while ROCE stands at 18.4% and ROE at 15.6%. The dividend yield is 1.77%. An earlier market reference in the supplied material showed the stock at ₹478.95, so the latest figure of ₹450 has been used here for consistency with the more recent data.
| Metric | Value |
|---|---|
| Current Price | ₹450 |
| 52 Week High | ₹486 |
| 52 Week Low | ₹213 |
| Market Cap | ₹4,364 Cr. |
| P/E | 29.2 |
| Book Value | ₹99.3 |
| Dividend Yield | 1.77% |
| ROCE | 18.4% |
| ROE | 15.6% |
The company reported consolidated revenue of ₹370 crore in Q1 FY27, compared with ₹310 crore a year earlier, representing 19.2% growth. Standalone sales increased 14.7% year on year, while EBITDA rose 21.7%. Management said margins remained within its usual 18-20% EBITDA range. Costs also moved higher during the period, with electricity, logistics and petroleum-linked expenses contributing to the increase, along with some currency pressure. The company is using value engineering, plant-level cost measures and selective price increases to manage these pressures, although management indicated that the effect of such measures takes time to appear.
| Financial metric | Q1 FY27 / Latest | Comparison |
|---|---|---|
| Consolidated revenue | ₹370 Cr. | ₹310 Cr. year ago |
| Consolidated revenue growth | +19.2% | YoY |
| Standalone sales growth | +14.7% | YoY |
| EBITDA growth | +21.7% | YoY |
| Normalised EBITDA margin range | 18-20% | Management range |
The shareholding trend has attracted attention because foreign investor ownership has increased over several quarters. FII holding moved from 14.31% in September 2023 to 18.92% in June 2026. The biggest recent change came between March and June 2026, when FII ownership increased from 14.69% to 18.92%. The supplied material also notes that domestic funds had reduced their exposure during the period. FII buying by itself does not indicate how the stock will perform, but the change is worth tracking alongside the company's operating performance.
| Period | FII holding |
|---|---|
| September 2023 | 14.31% |
| March 2026 | 14.69% |
| June 2026 | 18.92% |
The company is looking beyond its traditional automotive bearing business, with aerospace forming one of the newer areas. It recently acquired a platform referred to as Mahan Tools or MDR during the supplied management discussion, with a stated target of ₹300 crore in revenue and ₹90 crore in profit by 2031. The current order book for the aerospace unit and existing defence work at the company is around ₹50 crore. These targets are management plans and have yet to be established through reported financial performance at that scale.
The company is also expanding its exposure to electrification across applications such as electric two-wheelers, industrial motors and off highway electric vehicles. Management describes the business as EV-agnostic, with around 70% of its exposure sitting in applications that can be used across different vehicle powertrains. Robotics is another newer area, where the company is developing precision components for automation customers based on specific motion requirements. Work related to data centre cooling is still at the product development stage according to the supplied information.
The company has secured an order from its South Carolina facility in the US linked to Corvette production through an existing customer. The supplied information describes this as the facility's first such order. Separately, a bearing joint venture that was originally planned for Hyderabad has been shifted to Aurangabad. The change was partly linked to global logistics concerns and the availability of a ready-to-use facility. The joint venture has an investment of ₹110 crore and is expected to support around ₹130 crore of sales capacity, with commissioning targeted for April 2027.
The company is engaged in manufacturing ball and roller bearings for automotive and mobility applications. It has been manufacturing needle roller bearings in India since 1965 and is estimated to have around 60% market share in that segment. Its products are used across the automotive sector, while newer initiatives are taking the business toward aerospace, defence and industrial applications. The company also manufactures lightweight drawn cup bearings and conventional cylindrical roller bearings.
The stock has a reported P/E of 29.2, book value of ₹99.3, ROCE of 18.4% and ROE of 15.6%. The valuation needs to be viewed alongside the company's recent revenue growth and the investments being made in newer businesses. Investors can track whether aerospace orders develop as planned, whether the robotics business moves beyond product development and how the new joint venture progresses toward its April 2027 commissioning target. FII holding is another figure worth following as the business expands.
Some of the company's newer growth plans are still developing and have not yet reached the scale of the established bearing business. The aerospace platform has a stated revenue and profit target for 2031, while robotics and data centre cooling remain earlier-stage opportunities. Input costs also remain a concern, with electricity, logistics and petroleum-linked expenses putting pressure on costs. The joint venture and newer businesses will also require execution, while the stock's valuation needs to be supported by sustained earnings growth.
The story around this stock has moved beyond its traditional auto ancillary identity. Revenue growth remains healthy, FII ownership has increased over the past three years and management is pushing into aerospace, electrification and robotics-linked applications. The aerospace order book and the planned Aurangabad joint venture provide areas to watch, while some of the newer businesses are still unproven at scale. For investors following the stock, the next few quarters should provide a clearer picture of whether these expansion plans begin contributing meaningfully to the financial numbers.
NRB Bearings Ltd is an Indian bearing manufacturer that began producing needle roller bearings in India in 1965. The company is engaged in manufacturing ball and roller bearings used across automotive and mobility applications. It has an estimated 60% market share in needle roller bearings, and the supplied company information states that more than 90% of vehicles running on Indian roads use bearings manufactured by the company. Its business is now expanding beyond conventional automotive applications into aerospace, defence, electrification and newer precision engineering areas.
NRB Bearings manufactures ball and roller bearings for automotive and mobility applications. The company also has activities linked to aerospace, defence, electrification and precision engineering.
The company has reported revenue growth while foreign investor holding has increased over the past three years. It is also expanding into areas such as aerospace, robotics and electrification.
FII holding increased from 14.31% in September 2023 to 18.92% in June 2026. The holding was 14.69% in March 2026.
Consolidated revenue from operations stood at ₹370 crore, compared with ₹310 crore in the year-ago period, representing 19.2% growth.
Standalone EBITDA increased 21.7% year on year in the latest quarter based on the supplied information.
NRB Bearings has an estimated 60% market share in the needle roller bearing segment, according to the supplied company information.
The latest supplied market data shows NRB Bearings trading at around ₹450 on August 12, 2026.
The reported 52-week high is ₹486, while the 52-week low is ₹213.
NRB Bearings has a reported P/E ratio of 29.2.
The company has expanded into aerospace and defence-related work. An aerospace platform referred to as Mahan Tools or MDR has a stated target of ₹300 crore revenue and ₹90 crore profit by 2031.
Yes. The company is developing precision components for robotics and automation customers, although the business is still at an early stage.
The new bearing joint venture planned for Aurangabad involves an investment of ₹110 crore and is expected to support around ₹130 crore in sales capacity.
The Aurangabad joint venture is targeted for commissioning in April 2027, according to the supplied information.
Investors can monitor input costs, execution of new projects, aerospace and robotics expansion, joint venture commissioning and earnings growth. Some of the newer businesses are still developing and have yet to reach significant scale.
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