At a Glance
NRB Industrial Bearings Ltd (NIBL) just dropped its Q1 FY26 results, and the numbers are about as smooth as a rusted ball bearing. Revenue was a weak ₹18.6 Cr while losses widened to ₹5.3 Cr. Stock crashed 5% to ₹22.8, and with negative ROCE (-18%), a book value of ₹-8.1, and debt still hanging around like an unpaid bill, investors are left wondering: is this a turnaround story or a slow-motion collapse?
1. Introduction
Founded in 2011, NIBL was supposed to ride on the booming industrial demand with its fancy lineup of bearings. Instead, it’s become a masterclass in how not to scale profitably. From negative net worth to consistent losses, the only thing rolling fast is the share price—down 47% YoY. Yet, promoters hold 72.5%, showing they’re still clinging to hope (or maybe just stuck).
2. Business Model (WTF Do They Even Do?)
NIBL manufactures and sells industrial bearings – think deep groove ball bearings, roller bearings, and other rotating magic that keeps machines alive.
- Products: Over 20+ bearing types catering to textiles, automotive, and heavy industries.
- Edge: Product variety, but no meaningful cost advantage.
- Reality Check: Competes with giants like Timken and SKF while bleeding cash every quarter.
3. Financials Overview
Q1 FY26:
- Revenue: ₹18.6 Cr (↑9% YoY)
- EBITDA: ₹-1.3 Cr (negative OPM of 6.8%)
- PAT: ₹-5.3 Cr (loss widened)
- EPS: ₹-2.2
FY25:
- Revenue ₹64 Cr | Net Loss ₹26 Cr | EPS ₹-10.8
No surprises here—another quarter of red ink.
4. Valuation
- P/E: Not applicable (loss-making)
- EV/EBITDA: Negative (losses persist)
- Book Value: ₹-8 (negative equity)
Fair Value Range: Honestly, any value above ₹10 is optimism on steroids.
5. What’s Cooking – News, Triggers, Drama
- Promoter Reclassification: Approved, but doesn’t fix financial mess.
- Management Plans: Cost-cutting and efficiency drive (heard this before).
- Going Concern Warning: Yes, auditors flagged it.
- Order Book: Not disclosed, but unlikely to move the needle in FY26.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 123 | 111 | 131 |
| Liabilities | 141 | 152 | 155 |
| Net Worth | -18 | -41 | -24 |
| Borrowings | 112 | 115 | 121 |
Comment: Net worth negative, debt creeping up—balance sheet screams distress.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 4 | 4 | -19 |
| Investing | -2 | 0 | 26 |
| Financing | -8 | -4 | -5 |
Observation: FY25 saw a rare inflow from investments, likely asset sales.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | Negative | Negative | Negative |
| ROCE | -3% | -17% | -18% |
| PAT Margin | -16% | -11% | -15% |
| D/E | 1.0 | 1.1 | 1.3 |
Verdict: Definitely not sexy—financial stress everywhere.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 81 | 73 | 64 |
| EBITDA | 4 | -8 | -9 |
| PAT | -13 | -26 | 18* (one-off gain) |
(*FY25 profit was a one-off exceptional item)
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Timken India | 3,148 | 446 | 56 |
| SKF India | 4,920 | 566 | 42 |
| Galaxy Bearings | 104 | 14 | 21 |
| NRB Industrial | 64 | -26 | NA |
Verdict: NIBL is a minnow swimming in a shark tank.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 72.5% (unchanged)
- FIIs: Nil
- Public: 27.5%
- Dividend: None since inception.
12. EduInvesting Verdict™
NIBL is a classic turnaround hope stock—lots of products, big market, but no profits. The Q1 FY26 loss of ₹5.3 Cr shows operational challenges are far from over. Debt is high, net worth negative, and auditors question going concern.
SWOT Analysis
- Strengths: Diverse product portfolio, promoter backing.
- Weaknesses: Negative equity, continuous losses, weak margins.
- Opportunities: Industrial upcycle could help if they survive.
- Threats: Competition from SKF, Timken, insolvency risks.
At ₹22.8, NIBL is a speculative penny play. Only for those who like their investments with extra adrenaline.
Written by EduInvesting Team | 29 July 2025
SEO Tags: NRB Industrial Bearings, Q1 FY26, Bearing Industry, Penny Stock
