Nrb Bearings Ltd (NSE: NRBBEARING) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Harshbeena Zaveri — Vice Chairman and Managing Director
Analysts:
Unidentified Participant
Ajit Mishra — Analyst
Rajas Joshi — Analyst
Dev Gulwani — Analyst
Raghunandhan — Analyst
Presentation:
Harshbeena Zaveri — Vice Chairman and Managing Director
Sa. Sa. Foreign. Ladies and gentlemen, good day and welcome to The NRB Bearings Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Ajit Mishra from Ernst and Young Investor Relations. Thank you. And over to you sir.
Ajit Mishra — Analyst
Thank you. Good afternoon to all the participants on this call. Before we proceed to the call, let me remind you that the discussion may contain forward looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause future result, performance or achievement to differ significantly from what it expressed or implied by such forward looking statements. Please note that we have mailed the Q3 FY26 results press release and the same are available on the company’s website. In case if you have not received the same, you can write to us and we will be happy to send the same over to you to take us through the results, long term strategy and initiatives that have already been taken in the right direction.
We have the top management of NRB Bearings Ltd. Represented by Harsh Bina Zaveri, Vice Chairman and Managing Director. We will start the call with a brief overview of the quarter gone past and then conduct Q and A session. With that said, I now hand over the call to Harsh Bina Zaveri. Over to you Ma’. Am. Thank you.
Harshbeena Zaveri — Vice Chairman and Managing Director
Thank you so much. Good afternoon everyone. Thank you for joining us today for NRB Bearing’s Q3 FY26 earnings conference call. It’s always been a pleasure to connect with all of you and I truly appreciate the continued interest and engagement that you bring into these conversations. Over the last few quarters we have been focused on building a stronger, more diversified and more resilient nrb. Today I’m very pleased to share with you the progress that we’ve made in this direction. Let me please begin with our performance for the quarter. In Q3FY26, our revenue from operations grew 18% year on year.
It has now reached 328 crores. For this quarter, NRB’s EBITDA increased by 26% YoY to 64 crores and our EBITDA margin improved by over 19% compared with approximately 17 to 18% the same period last year. Profit after tax before exceptional Items rose by 44% year on year to 38 crores for the nine month period as well, the momentum remains Strong. Revenue for nine months FY26 was 963 crores up 11%. EBITDA grew to 193 which is a 20% increase. EBITDA margins rose to 19.5% year on year and profit after tax before exceptional Items stood at 112 crores.
112 shows a 27% increase year on year. This consistency quarter after quarter reflects a very deliberate approach. It comes from the choices that we are making on product mix, the customers that we choose to partner with our engineering first approach and the strong R and D fundamentals. Fundamentals on the back of which we have strengthened operations, improved our cost structures and added stringent working capital discipline which is also showing a good trajectory. I would say the most encouraging part of this performance is that it’s been achieved. While we are simultaneously investing in new platforms, new product primes and also adding entirely new but adjacent industry segments, the most defining developments of the quarter relate to our time and resources.
The first is a joint venture with Unitech. As many of you know, NRB is always focused on complex precision applications segments where engineering depth and reliability matter much more than volume or price point. Unitec shares this exact philosophy. They are one of Italy’s most respected independent industrial bearing manufacturers, especially strong in precision products across industry applications like cylindrical roller bearings, industrial gearboxes, agriculture, textile equipment, defense applications and aerospace related systems which use the product that we are going to start manufacturing along with them. This joint venture is therefore not simply about adding capacity, it’s also about adding capability.
We will manufacture industrial cylindrical roller bearings for very very exacting applications out of a LEED certified state of the art facility in Upal Hyderabad. NRB holds 75% in this upcoming joint venture which gives us strategic control and long term direction. Unitech brings advanced engineering solutions, deep customization expertise, a strong Europe centered OEM base and importantly the joint venture comes with an assured offtake commitment of production. This gives the platform immediate scale and visibility. For us in the NRB group, partnerships are all about accelerating our entry into new segments. This one is into industrial bearings. Industrial bearings is important because it is not a space where we enter as a commodity player but as a high end engineering solutions provider.
This segment offers diversity in terms of growth. It also offers stability, stronger margins, long life cycle relationships and aligns perfectly with our proven ability to engineer complex solutions and create diversification at scale. The second strategic milestone this quarter is our entry into the aerospace industry through the acquisition of Mahant Toolroom in Banalu. This is very meaningful for us because aerospace aligns with both our core capabilities and our long term aspirations. Our technical and R and D resources will enable the scaling up of this business. Mahan Toolroom brings sophisticated precision machining capabilities for engines, for fuel system components for mission critical aircraft, as well as doors and broad ends and they have been recognized multiple times, HAL’s Best Performance Award for Technical Excellence being the most recent.
They come with an order book of more than 25 crores, giving us instant scalability in this high entry barrier sector. Aerospace is a domain you cannot enter without a long lead time. Qualification cycles are long quality expectations. Exceptionally high approvals often take years to materialize. Through this acquisition we are able to fast track what is typically a long approval cycle. More importantly, this is completely aligned with our strategy of entering high technology, high margin, basically businesses where it’s difficult to gain a foothold and impossible to lose once you are there. These two initiatives, the Unitech Cherry and Mahant acquisition, are not isolated moves.
They are part of a larger declared strategic intent. This reset became possible after certain legacy constraints, as you all are aware of, were resolved. We continue to be conservative and focused solely on our existing business. For the past eight to 10 years, starting from between 2019 to early 25, we had performed with an entire set of structural constraints. However, we no longer face any of these constraints and focusing on our future while protecting and growing our core automotive leadership strength is the way forward. The discipline that we are putting in is critically important in terms of how demanding OEMs perceive us.
This platform of selecting customers who are both high margin and extremely, extremely particular in who they partner with is the base on which we are now building our confident entry into industrial aerospace, robotics, off highway and fundamentally many, many next generation mobility solutions that will help NRB achieve the aspirational goals and go well beyond what we have declared. I’m pleased to share that Crisil has maintained its credit rating of AA this financial year as well. This continues to be a significant recognition for us. As you well know, there are very few listed companies of our size that have this ranking and this reflects our standing as a benchmark of financial discipline and governance.
Strong liquidity, low leverage consisting operating performance and disciplined capital allocation framework. It also gives us the ability to attract partners pursuing strategic opportunities, whether they are in the form of JV acquisitions or greenfield initiatives, with other partners with extreme confidence and at an optimal cost of capital. I’m delighted to welcome our new CFO, Mr. Vineet Gol into our leadership team. Vineet brings over 25 years of international and domestic experience across manufacturing and technology enabled sectors. What is particularly important for us is that he has been with companies that are also very quality and profitability focused.
He has during his tenures covers greenfield projects, mergers and acquisitions, sharply financial transformations and focuses on working capital management, profitability and cash flow enhancement. This very well fits in with our shorter and long term strategic initiative. We are excited to have him join our leadership team. Let us now turn to the outlook because this is where I want to spend a little more time. We believe that NRB is entering perhaps the most exciting phase in decades. Our automotive business which is deeply entrenched with premium OEMs across.
operator
I’m sorry to interrupt Ma’. Am. Yes, please go ahead.
Harshbeena Zaveri — Vice Chairman and Managing Director
Is there a problem ma’? Am?
operator
No ma’, am, please go ahead now.
Harshbeena Zaveri — Vice Chairman and Managing Director
Our existing product portfolio is entrenched in new generation ev, ICE and hybrid platforms globally. This gives us long term revenue visibility, strong pricing power and an opportunity to get future business beyond automotive. Our industrial business is expected to grow rapidly and add significant opportunities through greenfield and partnership initiatives. As I explained earlier, the Unitech JV gives us access to European OEMs both here as well as in Europe who value engineering depth and application specific customization which has always been our strength. Because of our history with needle roller bearings, we expect this platform to expand steadily into construction equipment, agriculture, industrial machinery and robotic applications.
These sectors offer resilience across cycles. Aerospace and defence, as we explained are our third major engine. This is a long cycle business with high entry barriers, stringent certifications, robust margins. We believe that our trusted position with demanding customers is a positive and the ready order book that Mahant has is going to ensure faster growth than if we went on our own. All these platforms collectively give us a diversified, resilient and future ready model and the longer term growth plan adds profitability in the near and long term. What gives me the greatest confidence is our people.
The teams across our plans, R and D centers and customer facing functions are what gives us an edge. It is really their dedication and passion which are the two drivers of NRB’s performance. To all our investors and analysts, I thank you for your trust, your insights and your continued engagement. We remain committed to delivering value through disciplined execution, strategic clarity and sustainable, profitable growth. I do hope that I have been able to share both the recent results of the company and give you meaningful insights into the way forward. With that I will pause and open the floor to your questions.
Questions and Answers:
operator
Thank you very much. We will now Begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first questions from the line of Shreyansh Katari from HG Securities. Please go ahead.
Unidentified Participant
Good afternoon, ma’. Am. I had a few questions. So the first one was on the working capital. So what would be the inventory levels, you know, and where are we with, you know, the inventory reduction that we are targeting? You know, if you could just give some color on that, just the overall working capital and the inventory specifically.
Harshbeena Zaveri
Would you like me to start because we said you had a couple questions. Yes.
Unidentified Participant
I can ask the other question. Yeah, if you could just answer that, I can follow up after that.
Harshbeena Zaveri
No, I think it’s better if you put all your questions down then, you know, otherwise other people won’t get an opportunity because we are on a timeline.
Unidentified Participant
Sure. Okay. The second question is on the capacity. So I understand that you know, the capacities at this point are full and you know, our sales is probably peaked out around this 330 crore level per quarter. So given the higher inventories, like for Q4, which is pretty much the best quarter for us in that sense, how do we try to capture that growth? Or are we not able to fulfill the demand that we’ll have in Q4? Like on the additional capacity, like just trying to understand timelines on how we are building capacity and when and how in stages it’s going to come up.
I think those are the few questions I had.
Harshbeena Zaveri
Okay, so let me address your questions one by one. See, our working capital has basically improved as you could see. And we roughly have working capital limits which are up to 450 crores. And we have not utilized like a significant portion of that coming to, coming to our inventory. Our inventories have historically been 120 to 130 days as you noticed last year. Now we are down to 110 days. What is optimal for us, to be very honest, between 90 to 100 days. As you know, NRD is a company that has a very high share of business with many, many important customers, India and overseas.
All these customers expect us to carry raw materials. Especially considering the situation that has been faced since the post Covid period, including the Red Sea situation. Unless we are reliable in terms of the uptick and the downtick in demand, especially in terms of the dynamic situation that the world has faced, they would not be willing to give us 70% and 100% share of business, which is where we are or where we try to reach even where we have 30. Our ability to really command even the prices that we command has a lot to do with our reliability.
So if you look on the one side, we are a company that has a very much lower cogs than our competitors. On the other hand, there are two numbers where we are higher. One is the inventory and the second is actually our employee cost. That is a direct, I would say directly linked to our strategy. And while there are definitely there is some scope for improvement, especially looking at AI trace and track machine learning and other technological innovations that we are putting into our manufacturing system, but it’s not ever going to be less than 90 or 100 days or you would not get the kind of results that you see now.
Your last question, you talked about capacity again. I think the most important thing is how do you define capacity? Many companies traditionally look at capacity as some concept of installed capacity or some industrial engineers trying to figure out how much you can get, putting all the constraints in. We do not work with a constraint driven model. We look constantly at zero base and we see literally, was there a shift, was there a month, was there a week when we got a much higher output? What did we do differently that week? For example, instead of waiting for material, we always have three or four tool sets already in place.
So even if there’s the slightest delay for something, we immediately do a changeover and do not allow our capacity to go waste. That’s the way that NRB has been able to, if you notice, grow well beyond our competitors without actually having added significant capacity. But the one point that I would like to add, we are always adding balancing capacity. So are we not going to be able to create adequate bearings, produce adequate bearings to meet the demand this quarter? We definitely are going to be able to do that because continuous improvement and improving the actual numbers in every which way, including getting more out of our current production machines where we are building in all kinds of new controls, all kinds of better, I would say AI driven.
And what I mean by AI driven, we don’t actually have them on the machine, but we’re constantly using all the possible innovative tools available to drive a higher level of capacity and also a high level of quality through the machines. A higher level of consumption, which at the end of the day leads you to produce at least, I would say 15% more than the capacity that you staked. I Hope that answers your question.
Unidentified Participant
Yeah, that’s very helpful. So the understanding would be, you know, it’s the current demand, like the capacity is not going to be the constraint, you know, for the demand that we have as such we’ll be able to.
Harshbeena Zaveri
Fulfill isn’t because even the 200 calls that we announced earlier, some of the machines have already come. You know, all machines don’t take that long to come, especially if you’re buying balancing equipment or building it in house.
Unidentified Participant
Got it, Got it. Yeah, that’s what I’m trying to understand. How the CapEx is going to be, you know, staggered and when do we. It’s going to be staggered over two years. Like just trying to understand how we are going to be spending it and when we are going to realize those additional capacities.
Harshbeena Zaveri
I mean they come every quarter. Some of them take a year. If you are putting heat treatment in place, it takes a year. If you are putting grinding equipment in place, it takes a year. But when you are talking about all the other pieces of equipment that come in, they are considerably shorter lead times.
Unidentified Participant
Okay, okay, that’s very helpful, thanks. And my last question would be on the Mahan Tool Room acquisition. Is there like a plant that they have? Because we noticed the sales currently is only 1 crore. So I don’t know if the manufacturing is outsourced or what have we bought in terms is it just the technology or is it, you know, the plant or how do we. If you could just give some more details on that acquisition.
Harshbeena Zaveri
So the average turnover is approximately 2 crores. But they received very large orders from Hal and other customers which are conservatively placed at 25 crores after a lot of due diligence. Taking into account that some platforms come faster and some platforms take a little longer. Now they actually were not able to fulfill such a huge scale up of orders which is one of the big reasons why we got this opportunity. However, the gentleman who runs this company and who is a technocrat, who actually is the innovator, he has the ability to design and manufacture all in house, very sophisticated machine parts which include, as I said, landing gears, which include mission critical fuel injection parts, which include rod ends, which are actually a type of bearing and also linked to the kind of bearings that we have developed in house already.
And they make it there but to a lower scale than the order book they have. So we will immediately be scaling that up. Does that answer your question?
operator
Sorry to interrupt. May we request Mrs. Shayers to please rejoin the queue? We have participants waiting for the turn. Thank you.
Harshbeena Zaveri
To the next question then.
operator
Sure. Ladies and gentlemen, we will request you to please limit your questions to two per participant. If you have a follow up question, you may rejoin the queue. The next question is from the line of Raj Joshi from Chris Capital. Please go ahead.
Rajas Joshi
Thank you for the opportunity. Am I audible?
Harshbeena Zaveri
Yeah.
operator
Yes you are.
Rajas Joshi
Yeah. Congratulations on a good set of numbers. I had two sets of questions probably. The first is around our Q3 nine month performance. Could you please break down give a revenue mix of revenue across different segments be it domestic and exports and on the other side between cv, industrial and two wheeler pv. So split on that. And the second one is again around inorganic initiatives. And Mohan, what would be the timeline for the executable order book and the margin profile of the business? And secondly in Unitech also what be the timeline by which you know, we should start seeing production there?
Harshbeena Zaveri
And that was the breakup between domestic and exports. Right now it’s 75, 25 because we have 4 to 5% business from the US which is to the extent that the US business is down. Otherwise it would have been 70, 30. Okay, we’re still waiting for that US business to come up and you know, whatever results have been achieved, have been achieved in spite of some of the customers in the US having lowered their demand pattern. The second question I didn’t hear very clearly. Which are the segments that you wanted? Which are the segments that you wanted me to highlight?
Rajas Joshi
The data should be cv, pv, two wheelers and the remaining industry.
Harshbeena Zaveri
So to be very honest, I’ve given this data even last time, it doesn’t vary hugely. Our industrial segment is growing faster, but otherwise this data is available. And I have highlighted that even in the past there isn’t much meaning to give this data quarterly because each particular segment has a cycle. So I can tell you roughly, the CV segment for us is 27 to 30%. The two three wheeler segment is again another 30%. Industrial is going faster, but out of the total pie it is roughly been 8 to 10% and now it’s starting to move faster to 1112.
And the aftermarket has traditionally been between 10 to 12%. For us it continues to be at that pace. And PD for us again pretty much by design has been 20%. Because in the PD segment apart from focusing very strongly on the India market internationally, apart from real, I would say segment leaders like Audi and Mercedes, we supply tier one because we find directly supplying PV is a very cost driven, pricing, commoditized type of approach from the OEMs globally. But the tier one really cares much More about your design and your product launch capabilities, which commands its own, I would say pricing strength.
I hope I answered your question and with that I think we can move to the next one.
operator
Thank you. The next question is from the line of Dev Golwani from CARE pms. Please go ahead.
Dev Gulwani
Thank you for the opportunity. So bearing industry market size is approximately 20,000 priorities. And out of this 20,000, what will be the market size of needle and cylindrical bearings?
Harshbeena Zaveri
Do you want to know the global market size or do you want to know my share of business out of the total or what? Because typically we don’t give out such competitor information. We go more by the user segments. We are by far the strongest player in India in this segment and one of you know, many times we are compared to one of our large competitors who also manufactures this product. But you have to keep in mind that large competitors, predominantly an automotive aggregate supplier. So 70% of their business is automotive aggregates and only 30% of their business is actually bearing.
And I think that helps people understand why we have a higher market share.
Dev Gulwani
Right, understood. But the company is only into needle and cylindrical bearings mostly. So what is the tamp for nrb. Total addressable market for NRV bearings in India?
Harshbeena Zaveri
For needle roll events?
Dev Gulwani
Yeah, for needle bearings and cylindrical bearings.
Harshbeena Zaveri
But these are two completely different type of bearings. So I mean, and, and again, it depends on what. For example, the reason I’m not answering this question is not because I don’t want to answer it. I’m trying to kind of keep some information away. But you could have a cylindrical bearing that like $25,000 if it’s very, very big and it goes into steel plants. So it’s not possible for me to answer this question. We are a dominant player in our size range. Our size range is the size that most automotive and industrial companies use in terms of high volume.
But abstract cylindrical roller bearings can go into huge sizes which go into steel plants. So I can’t exactly answer that question accurately in a generic form. And we don’t actually make the very large sizes. There’s a large. See what I explained last time is we are planning to enter the bearing market for larger spherical cylindrical and taper bearings. But that will be a separate phase. When we do it, we’ll announce it with all the data right now. It is not a market that we are currently in. It’s something we plan to do in the next 12 months.
When we have all parts of that tied up, we will announce it.
Dev Gulwani
Second question, last question is one of the steps that Companies taking to decrease the inventory days, is that sourcing material locally instead of importing them? So how much percentage of raw material is imported currently?
Harshbeena Zaveri
Sir, pardon me saying this, you are assuming there is an advantage for us to use Indian raw material over imported. There are certain products we made for which in that specification there is no producer in India. It’s also not interesting for producers in India to make the kind of volume when they can get probably some other business to where India has a large uptake. There are basically two companies in India. Three, if you take SNL, which is another listed entity that belongs to us, 74% into account, there are three significant and proper, I would say organized sector players and there aren’t too many unorganized sector players.
Also in this four needle bearing products. And there’s not enough demand in terms of tonnes, okay, for any company to necessarily make some of the very high end, very specific specialty steel. So what we import is really what is not available here in the quality standards that we want to supply. An Audi or a Daimler or a Magna or a Dana or the kind of companies that we supply to. So if it comes, the raw material comes to India for the highest end of what we make, which is 25% of our export. And if it goes away from India back to Germany or France or the US or Japan, I mean, I don’t see anything wrong with that because we’re not just buying.
I think what’s more important is are we euro surplus hugely? Are we dollar surplus hugely? I think that is the fundamental point there. Pardon me answering your question in a different way, but that’s really how we look at it in the company.
operator
Thank you. The next question is from the line of Raghunandan Nl from Nuvama Research. Please go ahead.
Raghunandhan
Congratulations ma’, am, for an extremely strong quarter and wishing all the best for the strong performance to continue. Ma’, am, I just had one question. For the standalone business, can you indicate what was the growth for aftermarket and exports on a yoy basis?
Harshbeena Zaveri
See, exports have been maintained as a percentage of the total. So it can be derived very easily. We’ve not lost exports, we’re not down in exports. It continues to be 25% of our business. It was 25% of our business even last year. So that number can be very easily calculated. Aftermarket is definitely down. There is no question. Overall, the aftermarket is facing very, very challenging situations. And that is probably one of the reasons you’ve seen our competitors having a great deal of challenge. I think our biggest strength and advantage has been, in my opinion, that we are not very dependent on the aftermarket.
Because if there’s one segment that is more volatile than any other segment in terms of both automotive and industrial, it is the aftermarket. Now, in the case of nrb, why is aftermarket not so important to us versus our competitors? Because we don’t have a margin difference. A lot of the other companies that make commoditized products, even if they’re global players, command a hugely higher price in the aftermarket. We are blessed to be able to command the same kind of price at oem. And one of the reasons that we don’t serve the aftermarket that much, because our bearings don’t fail.
We really use applications where performance is so important. I mean, how many of you have had a gearbox that failed? Every single one of you probably has a gearbox that runs on NRB bearings. I don’t know if that answers your question, sir.
Raghunandhan
But you see aftermarket weakness as a temporary situation. You think that things should improve going forward.
Harshbeena Zaveri
To be very honest, we find it very easy to sell the excess that aftermarket goes up and down on because it’s the same quality, it’s the same production lines, it’s the same product, which is not necessarily true for our competitors. So we don’t produce in the aftermarket. So there are two points we also supply to spd. Ok? Our customers expect us to supply and keep their aftermarket running. One, okay, we get a differential pricing from them for that. The second thing is that as far as the aftermarket is concerned, it takes a huge number of people to serve.
NRV by its very culture is a very customer facing oem, high quality, technologically driven company. And the reason I’m highlighting that is all our salespeople are very technically savvy, technically smart. If I were to deploy 10 people to supply a new OE segment, I would need probably 100 people in the aftermarket to serve the same number. It doesn’t show up on the annual reports on of our competitors because these people could be well subcontracted by them. Does that answer your question? It really doesn’t matter as materially. We can always sell more when the aftermarket is doing well and sell it somewhere else if they’re not doing well.
It’s not a core part of our strategy.
Raghunandhan
Understood, ma’. Am. Thank you. Thank you for the detailed answer. It’s very helpful.
operator
Thank you. The next question is from the line of apur. From answer, please go ahead.
Unidentified Participant
Yeah, thank you ma’ am, for the opportunity. I have two Questions. First question has three subparts and it’s majorly on the capacity size only. So ma’, am, the same GV which we have done with Unitech. Right. Just want to know that how much capex or how much total capex would be required there and the revenue potential on that and by when that plant would be completely commercialized. The second part is on the 200 crore capex which we have planned right now. So by then that complete would be into operationalized. And third is the 70 crore capex which we have recently announced in the results.
So by when it will be completely into operation. And the second question.
Harshbeena Zaveri
Sorry to interrupt you but your questions are linked to the JV or NRV’s total CapEx.
Unidentified Participant
So it has multiple parts. So first question was regarding the JV with the unit group. So by when it would be commercialized and the capex required for that.
Harshbeena Zaveri
Okay, so let me answer that because there are multiple questions. So I just don’t want to lose the chain. Our JV is a total cost of 110 cross. Okay. And it would. We’ve already started the building and we’ve ordered out the longest length, I would say equipment and that would be a period of 12 months before it’s received. It would take another few months to stabilize. So I would say it would be 15 to 18 months by which it would have significant production coming out. Okay. If that answers your question.
Unidentified Participant
Got it.
Harshbeena Zaveri
One moment sir. The capex per se is not going to be significant. It’s not 110 crores. We’re adding 110 crores of capacity there. But we also have the JV partner chipping in. Right. And there also be the debt equity number. So keep all that in mind. All right. Which we don’t necessarily share in advance but I just want to give you a personal perspective on it. The second question you asked me was related to general capex and capacity. Can you repeat that question?
Unidentified Participant
Yeah, sure ma’. Am. Yeah. So the 200 crore capex which we have done. Right. So by then it will get started completely.
Harshbeena Zaveri
Now you’re talking about the total capex of 270 that we have approached. You know that our board has sanctioned and which we have disclosed.
Unidentified Participant
Yes, ma’. Am.
Harshbeena Zaveri
Yeah. So that is all the time. I already answered that question. Frankly in the first round, unless it’s a specific project where everything comes together and goes into a new building, it’s constantly coming in.
Unidentified Participant
Sure, ma’. Am. So it will get. So from my understanding is that in next one year it will get Completed, right?
Harshbeena Zaveri
No, definitely not. Definitely not. I think I will answer this question two ways if I might preempt your intention in what you’re trying to understand. One is that NRB is not a company that operates like a multinational which goes and puts in a huge plant and massive capacities and then tries to sweat them and look for business. That’s not how we operate. We are in so many segments as you know, we have a large market share, 23 wheelers and industrial farm equipment together in the PV sector, in the CV sector and in all these there’s ICE hybrid, EV agnostic applications and also E mobility applications which all coexist and we focus on them and we keep trying to get higher market share than our competitors and grow faster than the industry growth.
So we are constantly looking apart from this. I mean just for your knowledge, we make what, 3400 odd products, okay, variance and we have very high market share and mass customization is actually our strength. We don’t necessarily do variants at higher cost, we do them extremely cost effectively because it’s not a mindset. It is not that you have one line and it’s making just 100 or 200 types of bearings like some of our competitors make. Okay, now when you keep that whole thing in mind, you will understand that our capex is based on our next year’s plan and our three year plan.
So if we know that a particular company is moving to India like when Zs came and became very aggressive and they’re moving a lot more of their production from China or somewhere else here, we will immediately get an insight into that because we work very closely for future launches globally. For your information, we supply 43 countries for our top 20 customers into their plants in 43 countries. So when you keep this in mind, we are constantly investing the capacity for their specific needs. Does that answer your question?
operator
Thank you. The next question is from the line of Garved Gural from Sir and Alpha. Please go ahead.
Unidentified Participant
Hi, good evening. Hope I am audible just one question. While I understand that we are leader and in your opening remarks you mentioned you faced some legacy challenges and hence very marginal growth in the last decade but now you will be looking different company. So given this, if I look at your internal target which we have given in the PPT of around 2500 cr by 2031 which again CAGR of 13 to 14% which we are looking at. So even after entering into the newer growth areas and considering that we are the leader in the existing product portfolio, why are we settling down for These lower range of growth, why can’t we be more aggressive in the terms of growth?
Harshbeena Zaveri
So first of all it comes to 12%, not 14. Okay, what’s the number that you mentioned? However, we are not a company that gives future guidance. I mean when I’m constantly asked this question, I give the answer. It’s really up to you to see what answer I gave three months back. Okay. And what are companies actually achieving?
operator
Thank you. The next question is from the line of Hiten Bodisha from Sequent Investments. Please go ahead.
Unidentified Participant
Yeah, thank you ma’. Am. Thanks for the opportunity. So ma’, am, my question again pertains to capex. So like if you can give the breakup of this 270crores, like out of these 270crores how much we are spending on each segment. Let’s say for NR needle bearing, for cylinder bearing, for industrial segment, for aero segment, if you can provide the breakup for that.
Harshbeena Zaveri
So typically we don’t provide information that will hurt us with our competitors.
Unidentified Participant
Okay. Okay.
Harshbeena Zaveri
So maybe what I’m saying, right, Because I mean we were not even able to gauge how much SKF was industrial and automotive. Okay. I have to take, we go back and we say how much was the base of this company? And if I start giving so much more information than my competitors, given the public domain which I’m not required to give, it will just unnecessarily, kind of, I don’t think it’s exactly something that you know, makes sense.
Unidentified Participant
I understand ma’, am, I understand. So let me asking other way. So suppose with the current capacity, assuming it’s running at 100% with 350 crore kind of run rate per quarter, we are going, we will do around 1400 13, 1400 per year. So what will be a max turnover post 270 crore capex?
Harshbeena Zaveri
Okay, so what will be a peak turnover then I give you that answer again in a slightly different way. If we are building something end to end, okay. And putting in every little bit of the capacity and you can see our past results and you will see this when you know we couldn’t do joint ventures and acquisitions and the plug and play model that I’m talking about with so many partnerships helping us grow faster in the period, we couldn’t do that for constraints that have already been explained to you. If you put 100 crores in, we used to get 100 crores out.
Okay? However, that is definitely not true if you look at the model that we are using going forward for our traditional products where we have A huge edge. And we already have a lot of capacity and depreciated machines. If we go and buy some additional machines, we don’t necessarily get a hundred crores more because we already have the earlier machines where we are working on continuous improvement. So when we go and order machines, we are ordering machines of a much better generation. Especially with the technological advancement of 4.0. We are very strong in robotics and we are extremely strong in getting a better performance from our plant and machinery.
Okay, so even that hundred would be an improved number for our traditional product lines. When we’re talking about all the new businesses that we are adding, whether it’s aerospace, whether it’s the JV with Unitech, whether it’s construction equipment, bearings that we have talked about as one of our future four year strategic plan initiative and such additional new industrial and beyond automotive, because they are also automotive products that we are adding. We are not losing the momentum on automotive, we are adding more through partnerships. The whole idea of the partnership is actually to get you a quicker and higher return for every 100 crores you spend.
Does that answer your question?
Unidentified Participant
Yes, ma’. Am. Yes, ma’. Am.
Harshbeena Zaveri
So really, if you’re putting 200 right now you have 270 crores of capex, 100 crores is going into the plan that we are making now. While 110 out of that, you know, again, as I said, you consider the traditional debt equity ratio NRB has is about 0.47 to 0.5. It’s just that we didn’t have that much CAPEX happening. So you know, the money got saved. But if you work on that number and then you see that you have to just put 75% and 25% as I said, for example, in the JV will come from the partner.
Now at the end of it, instead of trying to sell all of it, which again has a cost, right, you will have already a customer for 20% of it because there is a buyback in the JV. Again, if you have any technological challenges and you’re talking about getting the top European customers which are already in India, which are already customers in Italy and in the rest of Europe of our JV partner, so we get the approvals from the customer that much faster. So when you keep all these things in mind, definitely I would say that traditional 100 would go down conservatively to an 80 or something like that.
That means you would get 20% more from the 100 crores depending on the kind of JVR acquisition or the kind of order book that you have in advance or the kind of capabilities that the company that you are partnering with has. And that is the model that we are going to use for new segments.
operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Unidentified Participant
Ma’. Am. Namaskar, ma’. Am. Audible.
operator
Yes, you are. Please go ahead.
Unidentified Participant
Yeah. Yes, ma’. Am. Ma’. Am, firstly, pertaining to the, to the EBITDA margin number, we have posted EBITDA margin at 19.3. That is closer to 20% even for nine months. It is closer to 20%. What should be the trajectory that we will be gliding going ahead? Are these the peak, peak margins and what factors have alluded to the, to the incremental margin from 18 to this 19.5% journey? And secondly, ma’, am, you have already spoken about the, the Capex part, but in your earlier conversation you did spoke about 500 crore worth of capex. That is in the annual. So if you could just give some more color on for the 2500 crore top line that we are eyeing, how much Capex is needed to be done? Thank you.
Harshbeena Zaveri
So right now this Capex would take us approximately two, two and a half years. Right. So the number still stays. You get my point. No, ma’, am, they said it depends on whether it will be 250 crores more, whether it’ll be 200 crores more, 300 depend on the kind of partnerships that we form for additional products beyond the 2,500 crores which is basically based on the current product strategy. So that’s one answer. The second is that this is EBITDA as a percentage of sales. It’s not EBITDA. So if your company is growing at 12% or 14% and then you maintain your EBITDA, okay, your actual EBITDA grows as you’ve seen, substantially.
Are we going to maintain our EBITDA as a percentage of sales between the 18 and 20% band? Yes, we are. Exactly. How much it will be on quarter and quarter has a lot to do with cyclicality and seasonality.
Unidentified Participant
Right, ma’. Am. And in terms of volume growth, the growth which we have seen currently, I.
Harshbeena Zaveri
Mean we don’t give out volumes of our products because we make too many different products, unlike the other bearing companies which make one or two type of bearings. So there’s some meaning. I mean, Timken only makes taper bearings, for example, and cylindrical. So they can give you volume. But in our case the volume and the product mix is not relevant. We really look at how profitable a Customer is and we don’t tend to share that data externally.
operator
Thank you. The next question is from the line of Gata Jain from Anandath Skycon Private Limited. Please go ahead. Hello.
Unidentified Participant
Hi. Thank you so much for the opportunity and congratulations on good sets of numbers. I just had one question. Are we targeting EBITDA margin at over 20% and what strategies are we implementing. To achieve it if we are targeting it?
Harshbeena Zaveri
So I believe I did answer that question. But you know, our aim is to make sure that EBITDA margins are maintained in spite of this kind of high growth that we’re talking about. Going forward though certain lines of business are much higher margin and certain lines of businesses that we will target maybe slightly lower margin. But at the end of the day, for example, if we even had like 2 or 300 crores, which I’m not giving us future guidance but I’m just mentioning for thumb ruling of aerospace business it would be somewhere around 30% EBITDA margins.
And on the other hand if you enter a very, very large segment like wheels supplying to wheel applications then you would get a lot of volume jump. But the margins might be for the sake of discussion, 16 or 17%. But whichever way you look at it, you can be rest assured that we would have strategies that maintain our EBITDA margins as a percentage of sales. But at the same time we also grow. So again, conventional wisdom would show that a company our size, if it grows definitely the fixed cost would go down, it would get spread, let’s put it that way.
So I think those are things that will pan out as we go. But that is what we feel it will look like. Ma’, am, did I answer your question without future guidance.
operator
Thank you. The next question is from the line of Apoorva from ANS Wealth. Please go ahead.
Harshbeena Zaveri
Is this the last question? Because we, we have about five minutes left, right?
Unidentified Participant
Yes. I just have one question. So ma’, am, as we are planning capex of around 300, 400 crores in next couple of years, maybe next two, three years. So ma’, am, the potential turnover from this would be around 400 crores as we do asset turn of one right and our existing capacities are full. So ma’, am, how will we reach the 2800 crore top tank by 2031?
Harshbeena Zaveri
I’m sorry sir, I believe I answered this question more than once today and it was a fairly long answer. I already have explained this.
Unidentified Participant
Okay, I’ll go through the body. Okay, thank you.
Harshbeena Zaveri
Yeah, sorry. Because I mean it would take a long time because I’ve explained this in fact I think in three different. You know, to three different people covering three different aspects of this. How we can reach two and a half thousand easily and go beyond in terms of the spend. Ma’, am, one more. One last question. In this case, since this was a already answered question, if someone has a different question to ask, I’d be happy to. Surely.
operator
Yes. Ladies and gentlemen, this will be the last question today which is from the line of Garvit Goya from Seren Alpha. Please go ahead.
Unidentified Participant
Hi, thanks for the follow up and pardon me, I’m very younger in the terms of age than you ma’. Am. But I have a suggestion for the management. Please try to listen to the investors first. When I said 13 to 14% growth it is obviously from the current levels of top line. While 12% CAGR which you mentioned. Ma’, am, please check your PPT, it is based on the historical levels. So thank you very much.
Harshbeena Zaveri
No, no, one second sir, can you just repeat that? Because what I, what I mentioned, I. Can you explain what you mean by historical level?
Unidentified Participant
Sir, in the ppt, the sales CAGR chart which we have given the cadence in today.
Harshbeena Zaveri
So that must be a very old. That would not be. We actually have not put the PPT for today’s investor.
Unidentified Participant
It’s not very old. It is November 25th PPT. Thank you.
Harshbeena Zaveri
November 25th. So it would be 2/4 back or is it 1/4 back? So it’s last quarter. Right? Okay. And if you see from Today’s level for 2500 crores, that is the point that I made. Am I wrong in my calculation? Yes, I’m wrong in the calculation. Just check the calculation quickly. I don’t have a calculator in front of me. What is the exact number we’ve achieved? Give me a second sir, because your question is important. If I’ve not thumb ruled the calculation right in my mind it was 12 to 13 and not 13 to 14 which is what you find.
Unidentified Participant
But I’m just trying to understand, like my question was totally different but you just answered it.
Harshbeena Zaveri
Go ahead with your question then.
Unidentified Participant
I’m just trying to understand from you, like why are we not little bit aggressive in the terms of. I, I understand we are having the plans, we are entering into the newer areas, we are entering into the aerospace which is obviously a growing area in India right now. So I’m just trying to understand why are not we a little bit more aggressive in the terms of our guidance. So just that thing I just wanted to understand from you man.
Harshbeena Zaveri
So to be very honest, I’ll answer your question in two different ways. We are very aggressive, but we don’t tend to give guidance. So we tend to like to perform beyond what we state. And I think it’s just a company culture. It’s the same thing that makes us a AA minus crystal company. We tend to be prudent in what we express and we tend to express things in a manner that we as a team can outperform. And I think you would have seen that even in the last three quarters and therefore probably just that we don’t like to state things too aggressively.
Does that answer your question? But principally, yes, I understand where you’re coming from and it’s likely out there.
Unidentified Participant
Got it. Thank you very much. Thank you.
operator
Thank you, ladies and gentlemen. As this was the last question for today, I would now like to hand the conference over to management for closing comments.
Harshbeena Zaveri
So I would like to thank you very much for very insightful questions and it’s always very interesting for me and it’s a great learning experience to see what are the concerns and whether we are addressing them appropriately and where are the opportunities, because there are a lot of ideas. I can assure you that everything all of you have said today has been noted down very carefully. And we’ll think about it and we will build it into both our strategy and our operating plan. Thank you for your time and thank you for. For the very interesting and insightful questions.
Apologies if some of them could not be answered because we don’t tend to give future guidance. Thank you.
operator
Thank you on behalf of NRB Bearings Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.