NIBE Ltd Q2FY26: When Defence Dreams Meet EV Nightmares – from BrahMos to Bicycles and a CFO Exit in Between

1.At a Glance

If Bhagavad Gita were written in the age of corporate India, Lord Krishna might have said —“Do your duty, Nibe, without attachment to quarterly profits.”Because that’s precisely what the Pune-based engineering maverick seems to be doing.

NIBE Ltd, with a market cap of ₹1,591 crore and a stock price of ₹1,097 (down 11.4% in the past 3 months), is an unusual cocktail — part defence manufacturer, part EV tinkerer, and part software dabbler. The company, incorporated in 2005, makes everything from missile launchers to solar induction cookers — yes, you read that right.

But in Q2FY26, the stock took a missile hit itself: quarterly revenue dropped to ₹73.4 crore (a 46% fall QoQ), and PAT nosedived to₹–8.44 crore, a chilling 193% decline. Return on Equity stands at 13.6%, while Return on Capital Employed holds at 16.2%. Debt-to-equity at 0.39 is tolerable, but when your P/E is 502, it feels like paying for a BrahMos missile and getting a toy rocket instead.

2.Introduction – The Strange Case of NIBE Ltd

Once upon a time in Pune’s industrial belt, an ambitious engineer decided that India needed a company that could simultaneously build missile launcher framesandelectric rickshaw motors. Thus was born NIBE Ltd — a hybrid creature of defence grit and EV dreams.

NIBE has grown from machining weapon subassemblies to supplying L&T Defence, the Indian armed forces, and evenElbit Systems of Israel, which placed a USD 1.2 million order this year for naval rocket launchers. Somewhere between making “breech casings” and “trackways,” it also launched intoE-Bicycles, solar cookers, and lithium-ion batteries.Because why choose one battlefield when you can fight on all fronts?

Yet, 2025 has been a rollercoaster. Despite prestigious orders, Q2FY26 numbers looked like a budget sequel to its FY25 blockbuster. Sales cratered 46%, PAT turned red, and the CFO exited mid-battle — a triple blow that left investors blinking.

But don’t count NIBE out. It’s one of those smallcap stories that oscillate between“Next HAL in making”and“What on Earth just happened?”depending on which quarter you check.

3.Business Model – WTF Do They Even Do?

Let’s decode this engineering buffet:

1. NIBE Defence Division:Think of this as the jewel in their metallic crown. They fabricate and machine components forBrahMos,Pinaka, andMRSAMmissile systems — along with substructures for naval and aerospace programs. Their systems range from mechanical launchers to control systems and embedded military software. Basically, if it fires, floats, or flies, NIBE probably machined a part of it.

2. NIBE E-Motor Division:Here’s where the plot twists harder than an Excel pivot table. Through its subsidiaryNibe E-Motor, the company produces e-rickshaw and e-bicycle components, hybrid PCUs, and batteries. Their pitch: “Green India, Electrified India.” The irony: this eco-friendly arm currently generates red ink.

3. BVM Research Center & Foundation:The in-house innovation hub. They’ve developed lithium graphite batteries, supercapacitors, rugged mobile handsets, and EV control panels — proving the company loves experimenting as much as it loves defence contracts.

So, what’s the business model? NIBE is basically amechanical R&D octopus: one tentacle in defence, another in EVs, one in software, and possibly one trying to understand why profits keep vanishing every alternate quarter.

4.Financials Overview

Annualised EPS = (–5.82 × 4) =–₹23.28.P/E? Not meaningful — because there’s no “E.”

Commentary:The quarter’s results look like someone reversed the polarity on the EV batteries. Despite a strong order book (~₹130 crore from L&T and several defence deals in October–November), execution delays, cost pressures, and possibly the CFO’s farewell party have dented margins. EBITDA turned negative for the first time in years — a red flag painted in