The manufacturer of auto parts anticipates that the 2025 GST reform would encourage development in tractors and two-wheelers, which account for 40% of its sales.
Due to the 2025 GST revisions, the car component industry in India is anticipating a resurgence in demand, and NRB Bearings thinks it is in a prime position to benefit. The vice chairperson and managing director of NRB Bearings, Harshbeena Zaveri, spoke to shareholders at the company’s annual general meeting and characterized the change as a watershed moment for manufacturers.
“NRB Bearings is well positioned to capitalize on the momentous moment that the 2025 GST revisions signify for India’s industrial sector,” Zaveri said.
Reduced supply chain friction and increased competitiveness would result from the tax structure’s streamlining to just two slabs of 5% and 18%, she said, as well as from easier compliance.
“NRB should be one of the main beneficiaries of the GST rate decreases within our business,” she said.
Increased demand for two-wheelers and tractors
The company’s biggest client categories, tractors and two-wheelers, which together account for around 40% of NRB’s income, are already seeing the effects of the reform, according to Zaveri.
“As original equipment manufacturers increase production in anticipation of increased consumption, we are already observing a demand rise in our order book for the upcoming quarter,” she added.
With alliances with Hero, Honda, Bajaj, Suzuki, and TVS, NRB dominates the two-wheeler market in India. It also has strong relationships with top producers of agricultural equipment in the tractor market. According to Zaveri, rural and semi-urban markets, where entry-level cars and agricultural equipment are essential to family and livelihood economics, would especially benefit from the GST-driven affordability increase.
This policy-driven demand boost coincides with the company’s recovery from a difficult moment.
Its Waluj factory had been out of commission for two years due to a fire, but early this year it was back to full production. As a result, financial performance improved significantly: in Q1 FY26, EBITDA increased by more than 40%, net profit increased by 50% to ₹26 crore, and standalone revenue increased by 10% to Rs 279 crore. Due to robust local demand and growing international markets, EBITDA on a consolidated basis was Rs 61.4 crore on sales of ₹310 crore.
Accelerated plans for expansion
NRB Bearings is speeding up its ₹200 crore capacity expansion in order to capitalize on the momentum. According to Zaveri, the firm is expanding its size range to accommodate new applications and increasing the manufacturing of ball, taper roller, needle, and cylindrical bearings.
“We are focused on accelerating the augmentation of capacity in those items for which we are seeing a demand upswing, and the start of our capital expenditure growth this quarter appears well timed,” she said.
The expansion will enable NRB to access new markets outside of core mobility, including construction equipment, off-highway vehicles, electric grid, HVAC, defense, and aerospace. According to Zaveri, this is a component of a diversification strategy that spreads exposure across industries, regions, and clients in order to lower risk.
The business has strong ties with well-known international customers including Mercedes-Benz, BMW, Renault, and Stellantis. It has established itself as a technology-neutral provider by securing lifetime nominated orders totaling more over Rs 600 crore across electric and hybrid platforms.
“Our solutions coexist across platforms and dominate in applications that are same across all three, regardless of whether ICE, hybrid, or EV dominates,” Zaveri said.
By 2030, NRB hopes to generate Rs 2,500 crore in sales with industry-leading margins. According to Zaveri, the company’s cautious debt-to-equity ratio and AA-stable Crisil rating allow it to make bold investments when possibilities present themselves.
“With GST changes driving demand and our capacity expansion meeting market demands, we are sure that NRB is well on track to provide profitable and sustainable growth,” she said.