Revenue and Profit Growth Trends
Over the seven-year period ending March 2025, NRB Bearings' net sales have shown a consistent upward trend, rising from ₹765 crores in March 2021 to nearly ₹1,199 crores in March 2025. This represents a significant expansion in the company's top line, reflecting growing demand and market penetration. The total operating income mirrors this growth, with no other operating income reported, indicating that the bulk of revenue is derived from core operations.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income has also improved, increasing from ₹104 crores in March 2021 to ₹199 crores in March 2025. Including other income, operating profit rose to ₹224 crores in the latest fiscal year, underscoring the company's ability to enhance operational efficiency alongside revenue growth.
However, net profit has experienced some volatility. After peaking at ₹239 crores in March 2024, it declined to ₹79 crores in March 2025. This drop is partly attributable to exceptional items and increased interest costs in the latest year. Despite this, the company maintains a positive profit after tax margin of 6.9% in March 2025, reflecting sustained profitability.
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Cost Structure and Margins
Raw material costs have increased in line with sales, rising from ₹277 crores in March 2021 to ₹462 crores in March 2025, reflecting higher input prices and volume growth. Employee costs have also risen steadily, reaching ₹192 crores in the latest year, consistent with the company's expansion. Other expenses have increased from ₹233 crores to ₹355 crores over the same period.
Operating profit margins excluding other income have improved from 13.6% in March 2021 to 16.6% in March 2025, indicating better cost management and operational leverage. Gross profit margin, however, shows some variability, with a notable peak in March 2024, followed by a decline in the latest year.
Balance Sheet and Financial Position
NRB Bearings has strengthened its balance sheet over the years. Shareholders' funds have grown from ₹518 crores in March 2021 to ₹918 crores in March 2025, supported by accumulated reserves. The company has successfully reduced its long-term borrowings to zero by March 2025, down from ₹89 crores in March 2021, signalling improved financial health and reduced leverage.
Short-term borrowings remain elevated at ₹184 crores in March 2025 but have decreased from a peak of ₹256 crores in March 2023. Total liabilities have increased moderately, reflecting the company's growth and investment activities.
On the asset side, net block values have remained relatively stable, around ₹377 crores in March 2025, while capital work in progress has increased, indicating ongoing expansion or modernisation efforts. Current assets have grown significantly to ₹828 crores, with inventories and sundry debtors rising in tandem with sales growth.
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Cash Flow and Liquidity
Cash flow from operating activities has fluctuated, with ₹83 crores generated in March 2025 compared to a high of ₹157 crores in March 2021. Investing activities have generally been cash outflows, reflecting capital expenditure and investments, with ₹60 crores spent in the latest year. Financing activities have seen net outflows recently, including debt repayments and other financing adjustments.
Despite these fluctuations, the company has maintained a stable cash and cash equivalents balance, closing at ₹53 crores in March 2025. The net cash inflow/outflow has been marginally negative in recent years, indicating careful cash management amid growth and investment.
Book value per share has steadily increased from ₹53.43 in March 2021 to ₹94.75 in March 2025, reflecting enhanced shareholder value over time.
Summary
NRB Bearings has exhibited robust revenue growth and improved operating profitability over the past several years. While net profit and margins have shown some variability, the company’s financial position has strengthened, with reduced long-term debt and growing equity. Investment in assets and working capital supports ongoing expansion, and cash flow management remains prudent. These factors collectively underscore NRB Bearings’ solid historical performance and potential for sustained growth.
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