1. At a Glance
SNL Bearings is that rare smallcap that doesn’t scream for attention, doesn’t run fancy CAPEX presentations every quarter, and still manages to print money quietly. Market cap sits around ₹130 Cr, the stock price hovers near ₹361, and valuation multiples look almost old-school in a market addicted to 50x P/E startups selling “future potential.”
The company just reported Q3 FY26 numbers with revenue of ₹14.26 Cr, PAT of ₹2.65 Cr, and operating margins still holding above 23%—a level many auto ancillaries would happily frame and hang on their wall. ROCE is ~21%, ROE around 16%, dividend yield above 2%, and debt is practically non-existent.
Yet, the stock has delivered negative returns over 1 year and modest single-digit returns over longer periods. Why? Because SNL is boring. And in bull markets, boring companies get ignored until suddenly they don’t.
Is this a hidden compounder, or just a well-run but permanently sleepy subsidiary? Let’s open the bonnet.
2. Introduction
SNL Bearings was incorporated in 1983, which means this company has survived license raj hangovers, liberalisation shocks, multiple auto cycles, BS norms, EV panic, and every possible commodity cost tantrum.
Originally promoted by the Shriram Group in technical collaboration with INA Germany, SNL is now a subsidiary of NRB Bearings Limited, one of India’s established bearing players. That parentage matters—it explains both SNL’s operational discipline and its strategic limitations.
SNL doesn’t chase explosive growth. It manufactures needle roller bearings, supplies largely to OEMs, earns predictable margins, pays dividends, and goes back to work. No drama. No flashy announcements.
But in FY26, something interesting popped up: the board
approved an ₹8 Cr capacity expansion starting Q1 FY27. For a company with annual sales of ~₹55 Cr, that’s not pocket change. That’s a signal.
So the real question isn’t “Is SNL cheap?”
It’s “Why is SNL expanding now—and what does it see ahead?”
3. Business Model – WTF Do They Even Do?
SNL manufactures anti-friction needle roller bearings—tiny cylindrical components that look insignificant but are mission-critical in automotive engines, gearboxes, transmissions, and industrial machinery.
Their product lineup includes:
- Small End Cages (KBK)
- Big End Cages (KZK)
- Full Complement Shell Bearings
- Cage Guided Shell Bearings
- Needle Rollers
About 90% of sales go to OEMs, mainly auto manufacturers. The rest comes from replacement markets, exports, and scrap sales.
Revenue concentration? Yes.
Customer stickiness? Also yes.
Around 33–36% of revenue comes from NRB Bearings, the parent. Another 55–57% comes from domestic auto OEMs like Bajaj, TVS, Maruti, Tata Motors, etc. Exports are minimal (~2%).
This is not a diversification story. This is a “do one thing very well and don’t mess it up” story.
4. Financials Overview
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 14.26 | 12.48 | 14.77 | 14.3% | -3.5% |
| EBITDA | 3.31 | 3.57 | 4.00 | -7.3% | -17.3% |
| PAT | 2.65 | 2.91 | 2.93 | -8.9% | -9.6% |
| EPS (₹) | 7.34 | 8.06 | 8.11 | -8.9% | -9.5% |
