Q1 2027 NRB Bearings Ltd Earnings Call

August 10, 2026

Speaker #5: So, will all of that ₹110 crore be done, and will you commission the plant by the end of this financial year?

Speaker #4: So we will commission the plant by April 27. And right now, we are looking at a turnover of 110 gross, not a CAPEX—both.

Harshbeena Zaveri: We will commission the plant by April 2027. Right now we are looking at a turnover of INR 110 crore, not a CapEx. Investment is INR 110. Okay. The investment is INR 100, right? INR 110. INR 110, sorry. The investment is INR 110 and the capacity that will cover would be 130. Now, the location. We did decide to move the location from Hyderabad to Aurangabad, there were many reasons for that. We were finalizing the start of our building just when the war situation arose, we just felt looking at the entire logistics situation and the potential rise in cost in the future for logistics. The fact that we have already such a strong base in terms of people and infrastructure in the Aurangabad region and a very strong reputation also in terms of attracting people and suppliers and every kind of support.

Speaker #4: Okay. The investment is 100, right?

Speaker #3: 110.

Speaker #4: Sorry. So the investment is 110, and the capacity that will cover would be 130. Now, the location—we did decide to move the location from Hyderabad to Aurangabad, and there were many reasons for that.

Speaker #4: We were finalizing the start of our building just when the war situation arose, and we just felt, looking at the entire sort of logistic situation and the potential rise in cost in the future for logistics, and the fact that we already have such a strong base in terms of people and infrastructure in the Aurangabad region, and a very strong reputation also in terms of attracting people, suppliers, and every kind of support.

Speaker #4: We decided to move it, and we've already purchased a partly ready facility, because that also cuts down the lead time for being able to commission. As you know, in the current global scenario, everything has gotten slowed down, and we did not want to move away from our timeline of April 27.

Harshbeena Zaveri: We decided to move it, we've already purchased a partly ready facility. That also cuts down the lead time for being able to commission, because as you know, in the current global scenario, everything has gotten slowed down. We did not want to move away from our timeline of April 2027.

Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant.

Operator 2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is on the line of Rajveer Singh from Vivek Investment. Please proceed.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is on the line of Rajveer Singh from Vivek Investment. Please proceed.

Speaker #1: The next question is from Rajveer Singh of Vivek Investment. Please proceed.

Speaker #5: Hi. Am I audible?

Rajveer Singh: Hi, am I audible?

Speaker #4: Yes, you are.

Harshbeena Zaveri: Yes, you are.

Speaker #5: Thank you for the opportunity, and congratulations on your great set of numbers. My first question is on the industry opportunity. What percentage of our current revenue comes from industrial bearings?

Rajveer Singh: Thanks for the opportunity and congratulations on your great set of numbers. My first question is on the industrial opportunity. What percentage of our current revenue comes from industrial bearings, and how quickly can this move towards the 20% to 25% level that you have previously discussed? My second question is on the EV content. Are EV programs resulting in higher bearing content per vehicle for NRB compared with ICE vehicles? Could you quantify the difference in revenue per vehicle if possible?

Speaker #5: And how quickly can this move towards the 20–25 percent level that you have previously discussed? And my second question is on the EV content.

Speaker #5: Are EV programs resulting in higher bearing content per vehicle for NRB compared with ICE vehicles? And could you quantify the difference in revenue per vehicle, if possible?

Speaker #4: Okay, so I'll ask you first. To your first question—currently, we track this on an annual basis. We do not track this on a quarterly basis in terms of at least giving out the guidance, because there are a lot of different seasonal variations between the segments.

Harshbeena Zaveri: Okay. I'll answer your first question. Currently, and we track this on an annual basis, we do not track this on a quarterly basis in terms of at least giving out the guidance, because there are a lot of different seasonal variations between the segments. Our industrial business is 14% of our total now. It's grown steadily from 11 to 14. Our growth was 34% in industrial. I think that answers your first question. The second question, I have reiterated many times that NRB has fundamentally an EV agnostic strategy when it comes to EV vehicles. Which means that we are in those applications predominantly that will be common in the future for EV, ICE, and hybrid. We focus on chassis systems which will be the same on trucks and cars.

Speaker #4: Our industrial business is 14% of our total now. It's grown steadily from 11% to 14%. Our growth was 34% in industrial. So I think that answers your first question.

Speaker #4: The second question—I have reiterated many times that NRB has fundamentally an EV-agnostic strategy when it comes to EV vehicles. Which means that we are in those applications predominantly that will be common in the future for EV, ICE, and hybrid.

Speaker #4: So we focus on chassis systems, which will be the same on trucks and cabs. We focus on transmissions that will have a commonality when they're connected into the steering column, because our steering applications are common.

Harshbeena Zaveri: We focus on transmissions that will have a commonality when they're connected into the steering column because our steering applications are common. For example, if you see the BMW i steering that we're going to launch in 2027. That BMW i steering is through ICE, hybrid, and the EV line of BMW. Does that answer your question? It doesn't matter what the bearing of stake is in pure EV, because we are majorly 70% in those applications which are going to grow because of our technological expertise. We can partner with companies that are coming up with one platform for that aggregate to cover all three technologies rather than predict them. That's a big reason why we grew so fast.

Speaker #4: They are, for example, if you see the BMW i-Steering that we are going to launch in 2027. That BMW i-Steering is through ICE hybrid and the E lines of BMW.

Speaker #4: Does that answer your question? So, it doesn't matter what the bearing offtake is in pure EV, because we are majorly—70%—in those applications, which are going to grow. Because of our technological expertise, we can partner with companies that are coming up with one platform so that aggregates to cover all three technologies, rather than predict them.

Speaker #4: That's a big reason why we grow so fast.

Speaker #1: Thank you. The next question is from the line of Shreya from Serene Alpha. Please proceed.

Operator 2: Thank you. The next question is from the line of Shreya from Serene Alpha. Please proceed.

Operator: Thank you. The next question is from the line of Shreya from Serene Alpha. Please proceed.

Speaker #6: Hello. Am I audible?

[Analyst] (Serene Alpha): Hello, am I audible?

Speaker #4: Yes, you are.

Harshbeena Zaveri: Yes, you are.

Speaker #6: Okay. Could you please provide a clear outlook on the defense business, particularly the current order book and RFQ pipeline, as well as the expected conversion into executable orders?

[Analyst] (Serene Alpha): Thanks. Could you please provide a clean outlook on the defense business, particularly the current order book and RFQ pipeline, and the expected conversion into executable orders. What revenue contributes can we realistically expect from the defense in FY27 and in FY31? Basically, I want a defense business outlook and what capacities or capabilities are being added to support this group.

Speaker #6: And what revenue contributors can we realistically expect from the defense in FY 27? And in FY 31? So basically, I want a defense business outlook and what we are think of, what we are having the capacities or capabilities are being added to support this growth.

Speaker #4: So, I will look at defense aerospace and commercial aerospace together, and I will look at non-aerospace defense applications separately when I answer this question.

Harshbeena Zaveri: I will look at defense aerospace and commercial aerospace together, I will look at non-aerospace defense applications separately when I answer this question. This particular acquisition and the entire product offering from NPR is focused on aerospace defense and commercial applications. There we have predicted INR 300 crores, but with a revenue of INR 300 crores and profitability contribution of INR 90 crores by 2031. We are really looking at very high-end applications. The current order book, as I mentioned, because this was just closed literally a month back. The current order book is INR 25 crores, not taking into account a few more orders that we've received on the spherical bearings. You're talking about maybe INR 30 crores or something like that currently in hand. Now, talking about defense in general, NRB Bearings is an accredited US defense supplier for heavy vehicle applications. That is completely different.

Speaker #4: This particular acquisition and the entire product offering from MTR are focused on aerospace, defense, and commercial applications. There, we have predicted ₹300 crore, with a revenue of ₹300 crore and profitability contribution of ₹90 crore.

Speaker #4: By 2031. So we are really looking at very high-end applications. The current order book, as I mentioned, because this was just closed literally a few—like a month back.

Speaker #4: So the current order book is 25 crores, not taking into account a few more orders that we've received on the spherical bearings. So you're talking about maybe 30 crores or something like that.

Speaker #4: Currently in hand. Now, talking about defense in general, NRB Bearings is an accredited U.S. defense supplier for heavy vehicle applications. That is completely different than the supply for French defense, U.S. defense, and it goes into many, many other heavy defense launch equipment.

Harshbeena Zaveri: We supply French defense, US defense, and it goes into many other heavy defense launch equipment, which are supplied through Meritor. That is part of what we call a heavy mobility business. Does that answer your question, ma'am?

Speaker #4: Which are supplied through Meritor. So, that is part of what we call a heavy mobility business. Does that answer your question now?

Speaker #6: Yes, yes. Got it.

[Analyst] (Serene Alpha): Yes. Got it.

Speaker #4: Okay.

Harshbeena Zaveri: Okay.

Speaker #1: Thank you. The next question is from the line of Saloni from Molecule Ventures. Please proceed.

Operator 2: Thank you. The next question is from the line of Saloni from Molecule Ventures. Please proceed.

Operator: Thank you. The next question is from the line of Saloni from Molecule Ventures. Please proceed.

Speaker #6: Hi, very good afternoon, ma'am. Just one clarification before I ask my question. You mentioned 25 cross orders in hand for the defense launch tool room.

[Analyst] (Molecule Ventures): Hi. Very good afternoon, ma'am. Just one clarification before I ask my question. You mentioned INR 25 crores orders in hand for the defense launch program. Last time in the con call, we mentioned INR 50 crores. In the latest interview, we mentioned INR 70 crores. Could you help me understand this?

Saloni Hemnani: Hi. Very good afternoon, ma'am. Just one clarification before I ask my question. You mentioned INR 25 crores orders in hand for the defense launch program. Last time in the con call, we mentioned INR 50 crores. In the latest interview, we mentioned INR 70 crores. Could you help me understand this?

Speaker #6: So, last time in the phone call, we mentioned 50 crores, and in the latest interview, we mentioned 70 crores. So could you help me understand this?

Speaker #4: So that's why I specified—even at that time—the question is more linked to defense. And now that we've unveiled our different verticals, I wanted to separate what NTR has in hand, which is, as I said, approximately 30 crores.

Harshbeena Zaveri: That's why I specified. Even that time the question was more linked to defense. Now that we've unveiled our different verticals, I wanted to separate what NPR has in hand, which is, as I said, approximately INR 30 crores, and then the additional INR 20 crores that NRB has in the regular defense, not necessarily aerospace defense.

Speaker #4: And then the additional 20 crores that NRB has in the regular defense, not necessarily aerospace defense.

Speaker #6: Okay. Okay. So, total would be around 50 crores in hand currently?

[Analyst] (Molecule Ventures): Okay. Total would be around INR 50 crores in hand currently?

Saloni Hemnani: Okay. Total would be around INR 50 crores in hand currently?

Speaker #4: Yeah, total will be around 50 crores.

Harshbeena Zaveri: Yeah, total will be around INR 50 crores.

Speaker #6: Okay. Okay. Ma'am, regarding the JD, Unitech JD, I think in the latest interview you mentioned that the company has been planning to enter data centers as a market as well.

[Analyst] (Molecule Ventures): Okay. Ma'am, regarding the Unitec JV, I think in the latest interview, you mentioned that the company has been planning to enter data centers as a market as well, and you have already went into the boardroom and started discussing it internally. Just wanted to get your perspective on where we are in terms of finalizing the strategy for data centers. A lot of bearing companies, our competitors, have already been into this space. How are we trying to tap into this market since the opportunity is huge?

Saloni Hemnani: Okay. Ma'am, regarding the Unitec JV, I think in the latest interview, you mentioned that the company has been planning to enter data centers as a market as well, and you have already went into the boardroom and started discussing it internally. Just wanted to get your perspective on where we are in terms of finalizing the strategy for data centers. A lot of bearing companies, our competitors, have already been into this space. How are we trying to tap into this market since the opportunity is huge?

Speaker #6: And you have already gone into the boardroom and started discussing internally. So, I just wanted to get your perspective on where we are in terms of finalizing the strategy for data centers.

Speaker #6: And a lot of bearing companies, our competitors, have already been in this space. So, how are we trying to tap into this market since the opportunity is in?

Speaker #4: So first of all, that has nothing to do with the JD. That was NRB Bearings itself that we were talking about. The JD would be a part of our— The JD is focused on industrial cylindrical roller bearings.

Harshbeena Zaveri: First of all, that had nothing to do with the JV. That was NRB Bearings itself that we were talking about.

[Analyst] (Molecule Ventures): This will be a part of that industrial-

Saloni Hemnani: This will be a part of that industrial-

Harshbeena Zaveri: The JV is focused on industrial cylindrical roller bearings, which is for industrial gearboxes, large gearboxes and other such applications. Data centers is a whole new line of bearings, and we're in the product development stage. I don't think that we have anything concrete that we're ready to announce while we are working on it. Since the question came up, are we working on it? Yes. Do we have something to announce there? Not yet. There are many such emerging segment products that we're working on, which are linked to, I would say, the new technological opportunities which are out there, including robotics like humanoids, including different kind of automation systems. We recently announced that we got an order for half automotive system. Each of these orders that we have from these different segments are, let's say, INR 250,000 each.

Speaker #4: This is for industrial gearboxes, large gearboxes, and other such applications. Data centers are a whole new line of bearings, and we're in the product development stage.

Speaker #4: So, I don't think that we have anything concrete that we're ready to announce while we are working on it. And, since the question came up—are we working on it?

Speaker #4: Yes, do we have something to announce there? Not yet. But there are many such emerging segment products that we're working on, which are linked to, I would say, the new technological opportunities which are out there, including robotics like humanoids, including different kinds of automation systems.

Speaker #4: We recently announced that we got an order for half automotive systems. So each of these orders that we have from these different segments are, let's say, 250,000 each.

Speaker #4: And when you put them together, they are starting to create a new vertical. To that, we're also adding data centers, where we are still in the research and development stage.

Harshbeena Zaveri: When you put them together, they are starting to create a new vertical. To that, we are also adding data centers where we are still in the research and development stage.

Speaker #6: Okay, just one big picture question, ma'am. Directionally, we have become very clear since the transition in ownership control has happened and the pledging has finally been reduced.

[Analyst] (Molecule Ventures): Okay. Just one big picture question, ma'am. Because directionally we have become very clear since the transition in the ownership control and It happened when the pledging has finally been reduced. I just wanted to get your perspective on, because we are trying so many new verticals and the opportunities are just increasing in every quarter when we see the result updates. That doesn't gel with the 12% CAGR that we have been mentioning over and over again. Could you help me just get to a certain figure that resonates with the strategies that we have been adopting? As I said, because we're conservative, we prefer you actually use our last 12 months results as the baseline. That brings you to INR 2,700 odd crores. If I prefer that we see our actual 12 months average performance and extrapolate it into the future.

Saloni Hemnani: Okay. Just one big picture question, ma'am. Because directionally we have become very clear since the transition in the ownership control and It happened when the pledging has finally been reduced. I just wanted to get your perspective on, because we are trying so many new verticals and the opportunities are just increasing in every quarter when we see the result updates. That doesn't gel with the 12% CAGR that we have been mentioning over and over again. Could you help me just get to a certain figure that resonates with the strategies that we have been adopting?

Speaker #6: So I just wanted to get your perspective on this because we are trying so many new verticals, and the opportunities are just increasing. In every quarter, when we see the results updates—

Speaker #6: So that doesn't gel with the 12% CAGR that we have been mentioning over and over again. So, could you help me get to a figure that resonates with the strategies we have been adopting?

Speaker #4: So, as I said, because we're conservative, we prefer you actually use our last 12 months' results as the baseline. And that brings you to 2,700 orders.

Harshbeena Zaveri: As I said, because we're conservative, we prefer you actually use our last 12 months results as the baseline. That brings you to INR 2,700 odd crores. If I prefer that we see our actual 12 months average performance and extrapolate it into the future.

Speaker #4: If I prefer that you see our actual 12-month average performance and extrapolate it into the future, is the aspirational vision 3,000 crore? Yes. Is 2,500 crore too low?

Harshbeena Zaveri: Is the aspirational vision INR 3,000 crores? Yes. Is INR 2,500 crores too low? Definitely, it looks like lower than we're going to achieve for sure, which is why the guidance is being corrected based on the last 12 months average, which was 14.28. Did I answer your question, ma'am?

Speaker #4: Definitely, it looks lower than what we are going to achieve for sure, which is why the guidance is being corrected based on the last 12 months' average.

Speaker #4: Which was 14.28. Does that answer your question, ma'am?

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question.

Operator 2: Thank you. Before we take the next question, we would like to remind participants to unmute by star and one to ask a question. The next question is from the line of Sunil, an investor. Please proceed.

Operator: Thank you. Before we take the next question, we would like to remind participants to unmute by star and one to ask a question. The next question is from the line of Sunil, an investor. Please proceed.

Speaker #1: The next question is from the line of Sunil, an investor. Please proceed.

Speaker #5: Hello. Can you hear me?

[Investor]: Hello, can you hear me?

[Investor] (Private Investor): Hello, can you hear me?

Speaker #4: Yes.

Harshbeena Zaveri: Yes.

[Investor]: My question is regarding SNL Bearings. Considering the miniature size of that company in relation to NRB, is there any thought process towards merging it with NRB Bearings?

[Investor] (Private Investor): My question is regarding SNL Bearings. Considering the miniature size of that company in relation to NRB, is there any thought process towards merging it with NRB Bearings?

Speaker #5: My question is regarding SNL Bearings, considering the miniature size of that company in relation to NRB. Is there any thought process towards merging it with NRB Bearings?

Speaker #4: So, we do not have a concrete plan to merge it at this moment. There is a lot of proprietary technology that they have, which is very beneficial if they are in their own niche space.

Harshbeena Zaveri: We do not have a concrete plan to merge it at this moment. There is a lot of proprietary technology that they have, which is very beneficial if they are in their own niche space. Is it a great contributor? Yes, it is. NRB is one of those groups which believes that in today's world, there is much more strength in having smaller size subsidiaries, smaller size verticals with people who are extremely excited entrepreneurially to take that to the next level. That resonates very well with the youth of today as well, and also with the management aspirations of people. SNL has its own brand, and yes, it does cannibalize our products on and off, but in many ways, it also allows us to focus on the bigger things without losing the smaller but strategic businesses that we have. They have been growing extremely aggressively.

Speaker #4: Is it a great contributor? Yes, it is. NRB is one of those groups which believes that in today's world, there is much more strength in having smaller-sized subsidiaries, smaller-sized verticals, with people who are extremely excited entrepreneurially to take that to the next level.

Speaker #4: That resonates very, very well with the youth of today as well, and also with the management aspirations of people. SNL has its own brand.

Speaker #4: And yes, it does cannibalize our product on and off. But in many ways, it also allows us to focus on the bigger things without losing the smaller but strategic businesses that we have.

Speaker #4: And they have been growing extremely aggressively. Their strength is actually making machines, as well as making products for certain core industrial applications, and for two-wheeler and agricultural applications.

Harshbeena Zaveri: Their strength is actually making machines as well as making products for certain core industrial applications and for two-wheeler and for agricultural applications. They also have a brand, which while extremely respected, is at a slightly lower price point than NRB, which gives a very high-quality alternative in the replacement market to more price-sensitive clients rather than leaving it open to competitors who could move up the value chain. We see this all as a very strong strategy.

Speaker #4: They also have a brand which, while extremely respected, is at a slightly lower price point than NRB, which gives them a very high-quality alternative in the replacement market for more price-sensitive clients, rather than leaving it open to competitors who could move up the value chain.

Speaker #4: So, we see this all as a very strong strategy.

Speaker #5: Okay. Thank you.

[Investor]: Okay, thank you.

[Investor] (Private Investor): Okay, thank you.

Speaker #1: Thank you. The next question is from the line of Sriyanth from SG Securities. Please proceed.

Operator 2: Thank you. The next question is on the line of Shreyansh from SG Securities. Please proceed.

Operator: Thank you. The next question is on the line of Shreyansh from SG Securities. Please proceed.

Speaker #6: Hi. Good afternoon, ma'am. I had one question about this quarter's 'Other Expense.' Typically, we've been in the 90 to 92 crore range—around 90, 91, or 92 crores.

[Analyst] (SG Securities): Hi, good afternoon, ma'am. I had one question on this quarter's other expense. Typically we've been in the INR 90, INR 91 crore range, INR 92 crores. This quarter, we jumped by INR 10 crores. Just trying to understand what that constitutes.

Speaker #6: This quarter you jumped by 10 crores. So just trying to understand what that constitutes.

Speaker #4: I mean, it basically constitutes cost escalation in terms of electricity, cost escalation in terms of logistics—all that the newspapers are full of, right?

Harshbeena Zaveri: It basically constitutes cost escalation in terms of electricity, cost escalation in terms of logistics, all that the newspapers are full of, right? Is it something that we're dealing with? Well, we have a combination of VAVE, which is value engineering and cost reduction in the plant and price increase to deal with this. All those three are happening.

Speaker #4: Is it something that we're dealing with well? We have a combination of VADE, which is value engineering and cost reduction in the plants, and price increase.

Speaker #4: So, deal with this: all three of those are happening.

Speaker #6: All right. So it's basically all logistics and power-related costs.

[Analyst] (SG Securities): All right. It's basically all logistic and power-related costs.

Speaker #4: And obviously, dollar, obviously petroleum product related. Those three.

Harshbeena Zaveri: Obviously dollar. Obviously petroleum product related. Those three.

Speaker #6: Understood. Okay. That's all from my end. Thank you.

[Analyst] (SG Securities): Understood. Okay. That's all from my end. Thank you.

Speaker #1: Thank you. The next question is from the line of Apurva from Whitestone Financial Advisors. Please proceed.

Operator 2: Thank you. The next question is from the line of Apurva from Whitestone Financial Advisors. Please proceed.

Operator: Thank you. The next question is from the line of Apurva from Whitestone Financial Advisors. Please proceed.

Speaker #6: Yeah. Thank you, ma'am, for the opportunity. Ma'am, my question is on the capex side. We're trying to invest around ₹250 crores, right, in our capex program?

[Analyst] (Whitestone Financial Advisors): Yeah. Thank you, ma'am, for the opportunity. Ma'am, my question is on the CapEx side. We're planning to invest around INR 250 crores in our CapEx program. How much have we invested till now and how much are we planning to invest in this year?

Apoorv Bandi: Yeah. Thank you, ma'am, for the opportunity. Ma'am, my question is on the CapEx side. We're planning to invest around INR 250 crores in our CapEx program. How much have we invested till now and how much are we planning to invest in this year?

Speaker #6: So, how much have we invested till now, and how much do we plan to invest this year?

Speaker #4: So basically, a total of ₹270.60 crore has already happened. Another ₹100 crore is either already ordered or in the process of being ordered.

Harshbeena Zaveri: Basically, it's a total of INR 270 crores. INR 60 is already happened. Another INR 100 crores is either already ordered or in the process of being ordered. We will be using all this CapEx that we passed.

Speaker #4: We will be using all this Capex that we passed.

Speaker #6: Got it. This financial year, right?

[Analyst] (Whitestone Financial Advisors): Got it. In this financial year end?

Apoorv Bandi: Got it. In this financial year end?

Speaker #4: You know, roughly as I mentioned before, ₹100 crore of Capex gives us ₹130 crore of sales. So you can do your math when you're asking me for growth.

Harshbeena Zaveri: Roughly, as I mentioned before, INR 100 crores of CapEx gives us INR 130 crores of sales. You can do your math when you're asking me for growth.

Speaker #6: Okay. Thank you, ma'am.

[Analyst] (Whitestone Financial Advisors): Thank you, ma'am.

Apoorv Bandi: Thank you, ma'am.

Speaker #1: Thank you. The next question is from the line of Samarth, an investor. Please proceed.

Operator 2: Thank you. The next question is from the line of Samarth, an investor. Please proceed.

Operator: Thank you. The next question is from the line of Samarth, an investor. Please proceed.

Speaker #6: Thank you so much for the opportunity. Good afternoon, ma'am. Congratulations to you and your team for a great set. Ma'am, I had a couple of queries.

[Investor]: Thank you so much for the opportunity. Good afternoon, ma'am. Congratulations to you and team for a great day. Ma'am, I had a couple of queries. One is that on a long-term basis, we had been doing more than 20% margins on a steady basis in the past. Do we see that happening in the future again with the kind of businesses that we are getting into? Second question, ma'am, was that with the Mahant Tools acquisition, have we absorbed in the core team as well? Just wanted to understand whether the top talent has been retained with NRB post the acquisition. These were the two questions, ma'am.

[Investor] (Private Investor): Thank you so much for the opportunity. Good afternoon, ma'am. Congratulations to you and team for a great day. Ma'am, I had a couple of queries. One is that on a long-term basis, we had been doing more than 20% margins on a steady basis in the past. Do we see that happening in the future again with the kind of businesses that we are getting into? Second question, ma'am, was that with the Mahant Tools acquisition, have we absorbed in the core team as well? Just wanted to understand whether the top talent has been retained with NRB post the acquisition. These were the two questions, ma'am.

Speaker #6: So one is that, on a long-term basis, we had been doing more than 20% margins on a steady basis in the past. So, do we see that happening in the future again with the kind of businesses that we are getting into?

Speaker #6: And the second question, ma'am, was regarding the demand tool acquisition. Have we absorbed it into the core team as well? Just wanted to understand whether the top talent has been retained with NRB post the acquisition.

Speaker #6: So these were the two questions, ma'am.

Speaker #4: So, your first question—and I'm going to ask you for the second question again. But let me answer the first question. I have repeatedly said that our margins are between 18 to 20.

Harshbeena Zaveri: To your first question, I'm going to ask you for the second question again.

[Investor]: Yeah.

[Investor] (Private Investor): Yeah.

Harshbeena Zaveri: Let me answer the first question. I have repeatedly said that our margins are between 18 to 20. The reason I say that, and I keep reiterating it, we are not a quarterly driven company, and we don't want to be a quarter-by-quarter driven company. Sometimes there's a time lag. You have cost increases, escalations. The world is a very fluid place. Are we flexible and able to surmount that? Yes. You will see this trajectory moving between 18 and 20 over a kind of annual period, and it depends on which quarter hits what. That is not our driver. Do you get what I mean?

Speaker #4: The reason I say that, and I keep reiterating it, is that we are not a quarterly driven company. And we don't want to be a quarter-by-quarter driven company.

Speaker #4: Sometimes there's a time lag. You have cost increases, escalations—the world is a very fluid place. Are we flexible and able to surmount that?

Speaker #4: Yes, so you see this trajectory moving between 18 and 20 over an annual period. It depends on which quarter hits what.

Speaker #4: But that is not our driver. Do you get what I mean? The kind of business we choose then, by design, takes us to what is considered a highly profitable outcome for an engineering manufacturing business.

[Investor]: Sure.

[Investor] (Private Investor): Sure.

Harshbeena Zaveri: The kind of businesses we choose tend to, by design, take us to what is considered a highly profitable outcome for an engineering manufacturing business. Your second question, sir, I'm sorry, I missed it. If you can ask me again.

Speaker #4: Now, your second question—I'm sorry, I missed it. If you could ask me again.

Speaker #6: So ma'am, my second question was that with the acquisition we have done of Mahant Tools, have we absorbed the core team as well? The team which was there at Mahant Tools—the top talent and all that—has that been retained with us?

[Investor]: Ma'am, my second question was that, with the acquisition we have done of Mahant Tool Room, have we absorbed the core team as well? The team which was there at Mahant Tool Room, the top talent and all that has been retained with us. How has that panned out post the acquisition? That was my second question, ma'am.

[Investor] (Private Investor): Ma'am, my second question was that, with the acquisition we have done of Mahant Tool Room, have we absorbed the core team as well? The team which was there at Mahant Tool Room, the top talent and all that has been retained with us. How has that panned out post the acquisition? That was my second question, ma'am.

Speaker #6: How has that panned out post the acquisition? That was the second question, ma'am.

Harshbeena Zaveri: Very much so. In fact, that was one of the reasons for the acquisition. Mr. Mallappa now leads our Aerospace Defense Segment, is very much an integrated part of the NRB supply chain management in terms of all the different subsidiaries and all the different companies together acquiring this business, with Mahant Tool Room being the primary supplier.

Speaker #4: Very much so. In fact, that was one of the reasons for the acquisition. And Mr. Malapa now leads the Aerospace Defense segment. It's very much an integrated part of the NRB supply chain management, in terms of all the different subsidiaries and companies together, acquiring this business, with Mahant Tools being the primary supplier.

[Investor]: Sure.

[Investor] (Private Investor): Sure.

Speaker #4: And he's definitely—that was the whole idea: to take somebody who was so incredibly respected for his capabilities, but he didn't have the resources to really grow to the extent of his own dreams.

Harshbeena Zaveri: That was the whole idea, to take somebody who was so incredibly respected for his capabilities, he didn't have the resources to really grow to the extent of his own dreams.

Speaker #6: Okay, ma'am. And just a quick follow-up on that. So you said that he did not have the resources. So, post the acquisition, I'm sure that we are investing in all the resources when it comes to manpower also.

[Investor]: Okay, ma'am. Just a quick follow-up on that. You said that he did not have the resources. Post the acquisition, I'm sure that we are investing in all the resources when it comes to manpower also. It was not earlier, right? That is all.

[Investor] (Private Investor): Okay, ma'am. Just a quick follow-up on that. You said that he did not have the resources. Post the acquisition, I'm sure that we are investing in all the resources when it comes to manpower also. It was not earlier, right? That is all.

Speaker #6: It was not earlier, right? So, that is all in place now.

Harshbeena Zaveri: Manpower is a very small, insignificant part of this kind of business. It is really equipment and sheer infrastructure in terms of the quality of the space and the quality of the supply chain. NRB itself is part of the supply chain.

Speaker #4: Manpower is a very small but significant part of this kind of business. It is really equipment and, sure, infrastructure in terms of the quality of the space and the quality of the supply chain.

Speaker #4: And NRB itself is part of the supply chain.

Speaker #6: Understood. Understood, ma'am. Yeah, yeah, yeah. Thank you so much, ma'am, and wish you the best, and the team as well. Yeah.

[Investor]: Understood, ma'am.

[Investor] (Private Investor): Understood, ma'am.

Harshbeena Zaveri: Is that clear?

[Investor]: Thank you so much, ma'am, and wish you the best, and the team as well. Yeah.

[Investor] (Private Investor): Thank you so much, ma'am, and wish you the best, and the team as well. Yeah.

Speaker #4: Thank you very much.

Harshbeena Zaveri: Thank you very much.

Speaker #1: Thank you. The next question is from the line of Varun Jen from Dholak Capital. Please proceed.

Operator 2: Thank you. The next question is from the line of Varun Jain from Dolat Capital. Please proceed.

Operator: Thank you. The next question is from the line of Varun Jain from Dolat Capital. Please proceed.

Speaker #6: Yeah. Thank you, ma'am. So, ma'am, since the last phone call, has the lifetime nominated business increased from ₹800 crore? And has the Mahant Tool Room order book increased from ₹50 crore?

Varun Jain: Thank you, ma'am. Ma'am, from last con call, has the lifetime nominated business increased from INR 800 crore, and has the Mahant Tools order book increased from INR 50 crore? Secondly, for FY27, will we do any revenue from Mahant Tools?

Speaker #6: And secondly, for FY27, will we do any revenue from Mahant Tool Room?

Speaker #4: So, what is your last point that you mentioned?

Harshbeena Zaveri: What is the last point that you mentioned?

Speaker #6: Your second question was, the second part was that for FY27, will we convert some of the order book into revenue?

Varun Jain: The second part was that for FY27, will we convert some of the order book into revenue?

Speaker #4: Yeah, of course we will.

Harshbeena Zaveri: Yeah, of course we will.

Speaker #6: So, yeah. So, like, how much of the—so my question was that, what is...

Varun Jain: My question was that what is.

Speaker #4: So, as I said, I prefer giving longer-term guidance on things like that. It's very hard to predict in the aerospace field. I mean, like we mentioned, recently we got the Sukhoi-30 order for a plain spherical bearing.

Harshbeena Zaveri: As I said, I prefer giving longer term guidance on things like that. It is very hard to predict in the aerospace field. We mentioned recently we got the Su-30 order for a spherical plain bearing. Now, this is a breakthrough order. There are a handful of companies in the world, not even five, that can make this type of bearing. Okay? So you are really talking about entering a space where literally there is no one other than the Europeans and the Americans. Okay? And that global leaders have not managed to do, because most of our impressive global competitors have sold off their aerospace business because it is a very specific, fully focused, hard to deliver, but extremely high-margins business.

Speaker #4: Now, this is a breakthrough order. There are a handful of companies in the world, not even five, that can make this type of bearing, okay?

Speaker #4: So you're really talking about entering a space where, literally, there is no one other than the Europeans and the Americans, okay? And that global leaders have not managed to do, because most of our impressive global competitors have sold off the aerospace business, because it's a very specific, fully focused, hard-to-deliver, but extremely high-margin business.

Speaker #4: So to predict if you're going to get a ₹50 crore order in a certain year when you design it along with ATL NASIC, or whether ATL NASIC will go and get the door, for example, on a commercial aircraft from Airbus for 350 or not, is hard.

Harshbeena Zaveri: To predict if you are going to get INR 50 crores in a certain year when you design it along with HAL Nashik or whether HAL Nashik will go and get the door, for example, on a commercial aircraft from Airbus A350 or not is hard. But the point is, it is not that different from when we said that we are going to enter the Mercedes transmission or the BMW transmission. And today, every BMW from 1 Series to 7 Series has our bearings in their transmission. And Mercedes from A-Class, not just to S-Class, but even to the Maybach, has our bearings in the transmission. So it is more a question of not whether it is going to be INR 20 crores this year, but whether this year's INR 20 crores will become INR 100 crores next year.

Speaker #4: But the point is, it's not that different from when we said that we're going to enter the Mercedes transmission or the BMW transmission. And today, every BMW from the 1 Series to the 7 Series has our bearings in their transmission.

Speaker #4: And Mercedes, from the A-Class, not just to the S-Class but even to the Maybach, has our bearings in the transmission. So it's more a question not of whether it's going to be Rs. 20 crore this year, but whether this year's Rs. 20 crore will become Rs. 100 crore next year.

Harshbeena Zaveri: I really feel that answering the specific question is not as relevant as the track that we are on, which we are trying to highlight. Does that make sense?

Speaker #4: I mean, I really feel that answering the specific question is not as relevant as the track that we are on, which we're trying to highlight.

Speaker #4: Does that make sense?

Speaker #6: Yes, ma'am. Got it. Just one last question. Has the lifetime nominated business increased from ₹800 crore, which it was in the last quarter? If yes, what new platforms have we won?

Varun Jain: Yes, ma'am. Got it. Just last question. So has the lifetime nominated business increased from INR 800 crores, which it was in the last quarter? And if yes, what new platforms have we won? And secondly, have you purchased the land in Chhatrapati Sambhajinagar for the CapEx? Because we plan to start production in 12 months.

Speaker #6: And secondly, have we purchased the land in Aurangabad for the CAPEX? Because we plan to start production in 12 months.

Speaker #4: So yes, first of all, it has. For example, this business that I just mentioned to you, for making in the USA—that was not even part of the nominations, because there were many businesses which were not open to us unless the bearing was made in the USA.

Harshbeena Zaveri: Yes, first of all, it has, for example, this business that I just mentioned to you for make in USA. That was not even part of the nominations because there were many businesses which were not open to us unless the bearing was made in USA. This itself is a 300,000 peak volume business for the Corvette, what I mentioned. That alone has taken the 800 to 1,100. Then there are going to be a lot more, and there are a lot more other nominations which have been converted. Yes, the answer to that question. On the land part, I already just announced, maybe you missed it because you hadn't joined the call, that we've already purchased the land with a partially ready building for the joint venture in the Aurangabad, in Chander region actually.

Speaker #4: And this itself is a 300,000 peak volume business for the Corvette, which I mentioned. So that alone has taken the 800 to 1,100, and then there are going to be a lot more.

Speaker #4: And there are a lot more other nominations which have been converted. So yes, that's the answer to that question. And on the land part, I already just announced—it’s possible you missed it because you hadn’t joined the call.

Speaker #4: But we've already purchased the land with a partially ready building for the joint venture, in the Aurangabad, in the Chikalthana region, actually.

Speaker #6: Okay, ma'am. Got it. Thank you, and all the best.

Varun Jain: Okay, ma'am. Got it. Thank you, and all the best.

Speaker #4: Thank you.

Harshbeena Zaveri: Thank you.

Speaker #1: Thank you. The next question is a follow-up from Rajvi Singh of Awaken Westman. Please proceed.

Operator 2: Thank you. The next question is a follow-up question from the line of Rajveer Singh from Awaken Investments. Please proceed.

Operator: Thank you. The next question is a follow-up question from the line of Rajveer Singh from Awaken Investments. Please proceed.

Speaker #6: Hi, thanks for the follow-up. Ma'am, you mentioned that we are going to enter the robotics and humanoid industry. So, what kind of products are we going to supply to them?

Rajveer Singh: Hi, thanks for the follow-up. Ma'am, you mentioned that we are going to enter robotics and the humanoid industry. What kind of products are we going to supply to them? Do we have those products already, or are we going to develop new products?

Speaker #6: Do we have those products already, or are we going to develop new products?

Speaker #4: Sorry, can you just repeat that question?

Harshbeena Zaveri: Sorry, can you just repeat that question?

Speaker #6: Yeah, I'm saying, you mentioned our entry—that we are planning to enter the robotics and humanoid space. So my question is, do we already have products that we are going to supply to them, or are we going to develop new products that will cater to that industry?

Rajveer Singh: Yeah. I'm saying you mentioned our entry, that we are planning to enter the robotics and humanoid space. My question is, do we already have products that we are going to supply to them, or we are going to develop new products that will cater to that industry?

Speaker #4: See, we are a company that makes 4,000 products, even today. So this is not like a whole type of bearing; these are precision components.

Harshbeena Zaveri: See, we are a company that makes 4,000 products even today. This is not like a whole type of bearing. These are precision components. See, the reason that people value us is we make bearings, but we also make precision components using the technology capabilities that we have. It could be a shaft, it could be a housing. Everybody designs their robots and automation equipment differently. We are a customized solution provider. What they do is they tend to share the design with us and then tell us, Which are the products that you think you can make in this design? Or they tell us that, We have a problem with this robot lifting the arm in this particular way.

Speaker #4: See, the reason that people value us is we make bearings, but we also make precision components using the technology capabilities that we have. So it could be a shaft, it could be a housing—it could be anything, because everybody designs their robots and automation equipment differently.

Speaker #4: And we are a customized solution provider. So, what they do is they tend to share the design with us and then tell us which are the products that you think you can make in this design.

Speaker #4: Or they tell us that we have a problem with this robot lifting the arm in this particular way. Can you find us a solution?

Harshbeena Zaveri: Can you find us a solution?" Then we come up with an innovation, which is a combination of some precision components and bearings that does that task.

Speaker #4: And then we come up with an innovation, which is a combination of some precision components and bearings that does that task.

Speaker #6: Okay, understood, ma'am. Understood. Thanks. That's all I had.

Rajveer Singh: Okay. Understood, ma'am. Thanks. That's all I had.

Speaker #1: Thank you. The next question is a follow-up question from Saloni at Molecule Ventures. Please do not respond from the current participant.

Operator 2: Thank you. The next question is a follow-up question from the line of Saloni from Molecule Ventures. Due to no response from the current participant. Ladies and gentlemen.

Operator: Thank you. The next question is a follow-up question from the line of Saloni from Molecule Ventures. Due to no response from the current participant. Ladies and gentlemen.

Speaker #1: Ladies and gentlemen.

Speaker #4: So, I think that we can close the call, and I really thank you very much for all your very interesting questions. And I must say that when you asked me the question about $800, okay, I was more focused on the US business, and I mentioned $300,000 because it's $800 plus $300,000 that we were looking at for that year.

Harshbeena Zaveri: I think that we close the call, and I really thank you very much for all your very interesting questions. I must say that when you are asking the question about INR 800, okay, I was more looking at the US business, and I mentioned $300,000 because it's INR 800 plus $300,000 that we were looking at for that year. You were talking about the nominated business that I announced earlier, which was in crores with me. I just want to clarify that yes, the INR 800 crore has moved ahead. Again, we like to give the guidance and the complete rundown on that once a year. If I give it at a quarterly basis, then it unnecessarily causes this kind of confusion. Has it gone up? Definitely, yes. It has gone up.

Speaker #4: But you were talking about the nominated business that I announced earlier, which was in crores of rupees. So, I just want to clarify that, yes, the 800 crores has moved ahead.

Speaker #4: But again, we like to give the guidance and the complete rundown on that once a year, because if I give it on a quarterly basis, then it unnecessarily causes this kind of confusion.

Speaker #4: But has it gone up? Definitely, yes. It has gone up, which is why we are seeing this higher growth rate. That is why we are saying that if you compound the last 12 months' growth rate and then you calculate it going forward, we are already talking about very, very likely achieving 2,700 with what we have in hand.

Harshbeena Zaveri: Which is why we are seeing this higher growth rate, which is why we are saying that if you compound the last 12 months growth rate and then you calculate it going forward, we are already talking about very likely achieving 2,700 with what we have in hand. When we add all these other new products that you all talked about, which is on the aerospace side, and we gain traction on these five other verticals, including the various other products that we detailed out, then you are speaking about getting to a vision that is a lot closer to 3,000. Keeping in mind that we don't like to give forward guidance. That is the way it's been progressing. I thank you very much for the stimulating questions. There was a lot of food for thought.

Speaker #4: And then, when we add all these other new products that you all talked about—which are on the aerospace side—and we gain traction in these five other verticals, including the various other products that we detailed out, then you are talking about getting to a vision that is a lot closer to 3,000.

Speaker #4: Keeping in mind that we don't like to give forward guidance, but that is the way it's been progressing. So, I thank you very much for the stimulating questions.

Speaker #4: There was a lot of food for thought. It gives us insight into not just how you think, but also into ways we can use your thought processes to define our business and our future more clearly.

Harshbeena Zaveri: It gives us insights into not just how you think, but in ways that we can use your thought processes to define our business and our future more clearly. Thank you very much for your support, investors. That really means a lot to us.

Speaker #4: And thank you very much for your support, investors. That really means a lot to us.

Operator 2: Thank you. On behalf of NRB Bearings Limited's current listeners conference, thank you for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of NRB Bearings Limited's current listeners conference, thank you for joining us, and you may now disconnect your lines.

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Q1 2027 NRB Bearings Ltd Earnings Call

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