NRB Bearings expects GST reforms to aid demand, fast-tracks capacity expansion

Demand surge in tractors and two-wheelers

According to Zaveri, the impact of the reform is already visible in the company’s largest customer segments of tractors and two-wheelers, which together contribute around 40 percent of NRB’s revenue.

“We are already noticing a demand surge in our order book for the next quarter,” she said, attributing it to stronger retail demand as original equipment manufacturers ramp up production in anticipation of higher consumption.

NRB has a dominant presence in India’s two-wheeler space through partnerships with Hero, Honda, Bajaj, Suzuki and TVS, and in the tractor segment with leading farm equipment manufacturers. Zaveri said the GST-driven affordability boost would particularly benefit rural and semi-urban markets, where entry-level vehicles and farm equipment are critical to household and livelihood economics.

This policy-driven demand uplift comes at a time when the company has emerged from a challenging period.

A fire at its Waluj facility had disrupted operations for two years, but full capacity was restored earlier this year. With that, financial performance rebounded sharply: in Q1 FY26, standalone revenue rose 10 percent to Rs 279 crore, net profit surged 50 percent to ₹26 crore, and EBITDA grew over 40 percent. On a consolidated basis, EBITDA came in at Rs 61.4 crore on revenues of ₹310 crore, supported by strong domestic demand and expanding global markets.

Fast-tracking expansion plans

To capture the momentum, NRB Bearings is accelerating its ₹200 crore capacity expansion. Zaveri explained that the company is scaling up cylindrical, needle, taper roller and ball bearing production, while also widening its size range to serve new applications.

“The kick-off of our capex expansion this quarter seems well timed, and we are working on speeding up augmentation of capacities in those products for which we are seeing a demand uptick,” she said.

Beyond core mobility, the expansion will allow NRB to tap into fresh sectors such as construction equipment, off-highway vehicles, electric grid, HVAC, defence and aerospace. This, Zaveri said, is part of a diversification strategy that reduces risk by spreading exposure across sectors, geographies and customers.

The company continues to enjoy sticky relationships with marquee global clients such as BMW, Renault, Stellantis and Mercedes-Benz. It has secured lifetime nominated orders worth over Rs 600 crore across hybrid and electric platforms, underscoring its position as a technology-agnostic supplier.

“Whether ICE, hybrid or EV prevails, our products co-exist across platforms and dominate in applications that are identical across all three,” Zaveri said.

NRB’s longer-term ambition is to achieve Rs 2,500 crore in revenue by 2030 with industry-leading margins. Zaveri pointed out that its AA-stable Crisil rating and conservative debt-equity ratio give the company room to invest aggressively as opportunities arise.

“We are confident that with GST reforms accelerating demand and our capacity expansion aligning with market needs, NRB is well on track to deliver sustainable and profitable growth,” she said.