NRB Bearings Limited (NSE: NRBBEARING) delivered a solid financial performance in the third quarter of FY2026, supported by steady demand in the automotive components space, improved operating efficiencies, and expanding margins. The December-quarter results underscore the company’s ability to leverage its manufacturing capabilities while maintaining profitability momentum.
The company reported net profit of ₹28.62 crore for the quarter ended December 2025, marking a 34.18% increase from ₹21.33 crore recorded in the corresponding period a year earlier. Revenue also strengthened, with sales rising 17.74% year-on-year to ₹327.92 crore, compared with ₹278.52 crore in the same quarter of the previous fiscal.
Operating performance improved notably during the quarter. Operating profit margin climbed to 18.44%, up from 16.09% a year earlier, while profit before tax rose to ₹48.06 crore from ₹36.15 crore, reflecting stronger cost management and operating leverage.
Margin Gains Highlight Operational Strength
Industry analyses point to margin expansion as a standout feature of the quarter. Operating profit reached about ₹60.48 crore, translating into an 18.44% margin—an improvement driven by favorable raw material costs, higher capacity utilization, and operational efficiencies.
At the earnings level, EBITDA increased roughly 26% year-on-year to ₹64 crore, with margin improving to 19.3% from 17.9% in the prior-year quarter.
Management indicated that the company has now delivered its seventh consecutive quarter of year-on-year growth, highlighting consistent execution despite a dynamic demand environment. Consolidated revenue grew about 18%, while consolidated profit after tax (before exceptional items) advanced 44% compared with the previous year.
Expenses Rise Alongside Growth
The expansion came alongside higher spending. Total expenses increased nearly 19.73% year-on-year, largely due to a 17.71% rise in material costs and a 10.56% increase in employee benefits expenses, reflecting the scale-up in operations.
Despite these cost pressures, the company maintained profitability through improved operational discipline and better product mix, reinforcing resilience in its earnings profile.
Strategic Developments and Industry Tailwinds
Beyond the headline numbers, the company has approved capacity expansion initiatives and a new joint venture, signaling confidence in long-term growth prospects.
For the nine months ended December 2025, cumulative sales reached approximately ₹963.17 crore, representing double-digit growth over the prior-year period and pointing to sustained demand recovery in the sector.
Outlook
NRB Bearings’ Q3 FY26 performance reflects a combination of revenue growth and disciplined cost control, enabling margin expansion even amid rising expenses. The ongoing capacity investments and consistent earnings trajectory suggest the company is positioning itself to capitalize on structural opportunities within the automotive and industrial supply chain. While near-term performance will remain linked to demand trends and input costs, the latest results demonstrate operational stability and reinforce the company’s progress toward scalable, profitable growth.