Are NRB Indl Bearing latest results good or bad?

The latest financial results for NRB Industrial Bearings for Q2 FY26 highlight significant operational challenges despite a year-on-year revenue increase. The company reported net sales of ₹17.86 crores, reflecting a 9.17% growth compared to the same quarter last year. However, this revenue growth has not translated into profitability, as the company incurred a net loss of ₹6.74 crores, which is wider than the loss of ₹7.37 crores reported in the same quarter last year.
The operational metrics indicate persistent issues, with an operating margin of -14.73% and a deeply negative PAT margin of -39.31%. These figures suggest that the company is struggling to manage its costs effectively, as evidenced by the negative operating profit before depreciation, interest, and tax (PBDIT) of ₹2.63 crores. Additionally, the company has faced a quarter-on-quarter increase in net loss of 32.42% from ₹5.09 crores in Q1 FY26, despite only a slight revenue decline of 3.72%.

The financial position of NRB Industrial Bearings is concerning, with negative shareholder funds of ₹23.75 crores as of March 2025, indicating that liabilities exceed assets. The company's long-term debt has also risen to ₹74.86 crores, raising questions about its ability to service this debt given the ongoing operational losses and negative cash flows.

Overall, the results underscore a troubling disconnect between revenue growth and profitability, with the company facing deep-rooted structural challenges. The company saw an adjustment in its evaluation, reflecting the ongoing operational and financial difficulties.