Are NRB Bearings Ltd latest results good or bad?

NRB Bearings Ltd's latest financial results for the quarter ended December 2025 reveal a complex operational landscape. The company reported net sales of ₹327.92 crores, reflecting a year-on-year growth of 17.74%, indicating strong demand in its core automotive and industrial segments. However, the sequential growth was modest at 0.84%, which raises questions about the sustainability of this momentum. The operating margin for the quarter reached a record high of 18.44%, the highest in eight quarters, driven by effective cost management and operational efficiencies. This margin expansion is a positive indicator of the company’s ability to leverage its manufacturing capabilities despite fluctuations in raw material costs. However, the profit after tax (PAT) margin of 8.94% showed a decline from the previous quarter, primarily due to a significant drop in other income and a higher effective tax rate. The consolidated net profit stood at ₹28.62 crores, which represented a year-on-year increase of 34.18%, but a notable decline of 29.56% compared to the previous quarter. This decline in profit raises concerns regarding the sustainability of earnings, especially in light of the sharp reduction in other income from ₹14.31 crores in Q2 FY26 to ₹3.64 crores in Q3 FY26. Overall, NRB Bearings demonstrated resilience in its operational performance, evidenced by strong revenue growth and record operating margins. However, the sequential decline in net profit and the volatility in other income suggest that the company faces challenges in maintaining its earnings trajectory. The company saw an adjustment in its evaluation, reflecting these mixed operational trends.