NRB Industrial Bearings Ltd Management Discussions

I. Outlook/ Business Overview

Indias Economic Landscape:

India has delivered another strong year of economic performance in Financial Year 2025 26. Real GDP has grown at approximately 7.6 7.7%, making it the sharpest expansion since the post-pandemic rebound of Financial Year 2022, and consolidating Indias position as the fastest-growing G20 economy. This performance was achieved despite a challenging global environment marked by trade policy uncertainty and geopolitical volatility, underscoring the resilience of Indias domestic fundamentals.

Key Economic Highlights:

? GDP growth is estimated at approximately 6.7 % for Financial Year 2026 27, driven primarily by strong domestic demand, which constitutes roughly 60% of the economy.

? Private consumption accelerated meaningfully, and gross xed capital formation continued its upward trajectory, re ecting renewed con dence in Indias investment climate.

? Retail in ation fell to multi-year lows in 2025, easing to around 1.54% in September 2025, providing macroeconomic stability and room for monetary policy calibration.

Industrial Sector Outlook:

Indias industrial sector continued its structural transformation in Financial Year 2025 26, with manufacturing and capital goods emerging as cornerstones of national growth strategy.

? The Index of Industrial Production for capital goods surged 8.1% in late 2025, signaling not a temporary spike but the early stages of a structural industrial build-out aligned with Indias ambition to become a global manufacturing hub.

? Indias industrial GVA grew by 6.2% in Financial Year 2025 26, led by manufacturing growth of 7.0%, supported by resilient demand and improved capacity utilization.

? PLI scheme investments have now surpassed 2.16 lakh crore, generating over 14 lakh direct and indirect jobs and driving incremental production and sales beyond 20 lakh crore across 14 key sectors.

Bearing Industry Snapshot:

The Indian bearings industry stands at an in ection point, with structural growth drivers aligning favourably across all key end-use segments.

? The India bearings market reached USD 5.2 billion in 2025 and is projected to reach USD 12.0 billion by 2034, growing at a CAGR of approximately 9.69%, driven by expanding automotive production, increasing industrial automation, and rising infrastructure investment.

? The automotive sector continues to account for approximately 50% of total bearing demand, while industrial machinery contributes around 30%, with railways and aerospace emerging as signi cant and growing segments.

? The organized bearing sector in India is experiencing a clear shift toward high-performance bearings, particularly for electric vehicles and industrial automation, with the market expected to grow at 8 - 10% CAGR over the next four years.

? India currently meets approximately 61% of its bearing needs through domestic production, presenting a signi cant localization opportunity as quality norms tighten and import substitution gains policy momentum.

NRB Industrial Bearings Limited Strategy & Positioning:

As a leading domestic manufacturer of General bearings, NIBL enters Financial Year 2025 26 with a sharpened strategic focus, building on the momentum of the previous year and aligning with Indias expanding industrial ambitions. Our priorities for the year ahead are:

? Deepen OEM and export relationships , with particular focus on high-value, application-speci c bearing solutions for automotive, machine tools, and textile customers.

? Accelerate localization , positioning NIBL as a trusted alternative to imports by investing in advanced manufacturing processes and tighter quality frameworks.

? Expand market reach into Tier-2 and Tier-3 cities through a strengthened distributor network and targeted eld engagement.

? Enhance brand presence through key industry exhibitions, digital marketing, and application-focused technical seminars that build credibility with OEM decision-makers and industrial end-users alike.

Financial Year 2025 26 presents a compelling operating environment for NIBL one where strong macro-economic fundamentals, expanding industrial activity, and favorable government policy all converge to support growth in the precision components sector. We remain committed to delivering value to our customers, partners, and stakeholders as we scale our capabilities and deepen our presence in the bearing and motion technology ecosystem.

II. Financial Condition

1. Changes in Share Capital:

During the period under review there has been no change in the share capital of the Company.

2. Reserves and Surplus:

The balance of Capital Reserve as at March 31, 2026 amounted to Rs. 5,700.16 lakhs Retained Earnings of the Company for the nancial year ended March 31, 2026 stood at Rs. -17,756.57 lakhs and deemed capital contribution is Rs. 6,406.03 lakhs.

3. Fixed Assets:

During the year, we capitalized Rs 142.13 lakhs to our gross block comprising of Rs 53 lakhs of Lease Improvements, Rs. 72.62 lakhs for Plant & Machinery, Rs. 9.35 lakhs for Furniture and Fixtures, Rs 2.70 lakhs for Computer and Rs.4.45 Lakhs for O ce Equipment.

4. Deferred tax assets / liabilities:

Deferred tax asset and liabilities primarily comprise deferred taxes on xed assets, unavailed leave, Provision for doubtful debts, accrued compensation to employees and unabsorbed business losses which are not tax-deductible in the current year.

5. Trade receivables:

Trade receivables amounted to Rs. 1,043.51 Lakhs as at March 31, 2026 compared to Rs. 909.93 lakhs as March 31, 2025. Debtors are at 13.79% of revenues for the year ended March 31, 2026, compared to 14.28% as on March 31, 2025.

6. Cash and cash equivalents:

The bank balances in India include both rupee accounts and foreign currency accounts.

7. Loans and advances and other non-current assets:

The following tables give the details of our long-term and short-term loans, advances and other non-current

Loans and advances.

(Rs. in Lakhs)

Particulars	31st March,	31st March,
	2026	2025
Capital advance	199.13	37.22
Security deposits	156.50	129.15
Total	355.63	166.37

Capital advances represent amount paid in advance on capital expenditure.

Non-current Investments:

The Company had acquired 42,00,000 equity shares of Rs. 10/- each comprising 35% of paid-up capital in its associate viz. NRB-IBC Bearings Private Limited for the year ended December 31, 2013.

The Company had acquired 10,50,000 equity shares of Rs. 10/- each comprising 35% of paid-up capital in its associate viz. NIBL - Korta Engineering Private Limited for the year ended March 31, 2019.

Further theres no change for the year ended March 31, 2026.

8. Liabilities:

Long term Liabilities:

(Rs. in Lakhs)

Particulars	31st March,	31st March,
	2026	2025
Secured Term Loan	236.17	252.45
Other Loan	8,221.31	7,234.02
Total	8,457.48	7,486.47

Term Loan from Bank Secured:

a) Rs. Nil (March 31, 2025 Rs. 35.58 lakhs) secured by second charge on all present and future stock and book debts of the Company and second pari passu charge over immovable Property, plant and equipment (buildings), leasehold land of the Company and its movable plant and machinery, furniture and xtures and other movables at its factory at Shendra (near Aurangabad) and personal guarantee of Promoter Director of the Company. The working capital term loan is fully repaid in the current year and carried interest rate of 7.50 % p.a.

b) Rs. 190.54 lakhs (March 31, 2025 Rs. 258.23 lakhs) secured by rst pari- passu charge over Land and Building situated at Shendra, MIDC Aurangabad. The working capital term loan is repayable in remaining 27 monthly instalments Rs. 8.90 lakhs each till June 27,

2028 and carries interest rate of 14 % p.a.

c) Rs. 13.37 lakhs (March 31, 2025 Rs. 49.02 lakhs) secured by hypothecation of vehicles. Out of these , the term loan of Rs. 10.71 lakhs (March 31, 2025 Rs. 42.51 lakhs) carrying interest rate of 7.65% p.a. is repayable in remaining 5 equal monthly instalments by August, 2026 and the term loan of Rs. 2.66 lakhs (March 31, 2025 Rs. 6.50 lakhs) carrying interest rate of 7.65 % p.a. is repayable in remaining 9 equal monthly instalments by December 05, 2026.

d) Rs. 169.63 lakhs (March 31, 2025 Rs. 66.42 lakhs) secured by hypothecation of machineries purchased out of banks nance at its factory at Shendra (near Aurangabad) and personal guarantee of Promoter Director of the Company. The machinery term loan is repayable in 48 equal monthly instalments of Rs. 3.85 lakhs each till February 30, 2030 and carries interest rate of 12.50 % p.a.

Term loan from others:

a) Rs. Nil (March 31, 2025 Rs. 3.09 lakhs) secured by hypothecation of vehicles. The entire term loan carrying interest rate of 8.21 % p.a. is repaid by November 20, 2025.

Loans from related parties:

100 lakhs each 6 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2016 and in April 2016 with redemption at the end of 5 years from the date of issue. During the year ended March 31,2018, the terms of existing Redeemable Cumulative Non - Convertible Preference shares were changed w.e.f. February 15, 2018, with the dividend rate being modi ed to 2% and the redemption term being changed to 10 years. During the year ended March 31, 2016, the terms of existing Redeemable Cumulative Non - Convertible Preference shares were changed w.e.f. April 01, 2026, the redemption term being changed from 10 years to 13 years.

200 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in February 2018 with redemption at the end of 10 years.

100 lakhs and 35 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in January 2019 and in March 2019 respectively with redemption at the end of 10 years.

50 lakhs, 15 lakhs, 150 lakhs and 50 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in June 2019, August 2019, December 2019 and in March 2020 respectively with redemption at the end of 10 years.

65 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2023 with redemption at the end of 10 years.

75 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2023 with redemption at the end of 10 years.

Short term Liabilities:

(Rs. In Lakhs)

Particulars	31st March, 2026	31st March, 2025
Current Maturities of
Long Term Debt	137.28	159.89
Current Liabilities	180.98	124.58
Loans Repayable on
demand	5,062.31	4,493.81
Total	5,350.57	4,778.28

remittances (Contribution to PF, PT, Withholding Tax, GST, Excise Duty etc.).

9. Provisions:

Short term provisions for the previous nancial year ended March 31, 2025 was 97.87 compared to Rs. 182.44 for the nancial year ended March 31, 2026.

Long term provisions for the previous nancial year ended March 31, 2025 was 403.29 compared to Rs. 835.33 Lakhs for the nancial year ended March 31, 2026.

10. Revenue from Operations:

The classi cation of the Statement of Pro t and Loss is as follows:

Particulars	For the Financial Year ended March 31,2026	For the Financial Year ended March 31,2025
Revenue from Operations	7,562.01	6,374.20
Loss Before Tax and
Exceptional Item	(2,837.84)	(2,817.06)
Income From Exceptional Item	(172.75)	4,646.76
EBITDA	(724.73)	3,928.96
Tax Expenses	-	-
Pro t/(Loss) after Tax
after Exception Items	(3,010.59)	1,829.70
Other Comprehensive Income	190.65	168.17
Total Comprehensive Income	(3,201.24)	1,661.53
Earnings Per Share	(12.42)	7.55

DETAILS FOR DIRECTORS REPORT

In the Human Resources Report you can explore how we motivate, engage and care for our talent. Meet our workforce and see how we develop the future of work at NIBL Group.

III. Environment, Health and Safety:

At NIBL, safeguarding the health, safety, and overall well-being of our employees is a strategic priority and an ethical responsibility. We rmly believe that a safe and healthy work environment is fundamental not only to employee satisfaction but also to sustainable business performance.

Prevention-First Approach:

Our EHS initiatives are driven by a proactive, prevention- rst philosophy. Comprehensive safety protocols, hazard assessments, and incident response plans are consistently reviewed and strengthened to keep pace with evolving operational risks.

Regular training programmes including re safety drills, emergency evacuation simulations, and awareness sessions equip our workforce to act decisively in critical situations. These are supplemented by ongoing communication campaigns that reinforce a culture of vigilance and personal accountability.

Holistic Employee Well-Being:

Recognising that well-being extends beyond physical safety, NIBL addresses occupational health risks and stress-related challenges through:

Routine medical check-ups and health screening camps

Wellness sessions, mental health awareness drives, and counselling access

Ergonomics reviews and workplace environment assessments

These interventions are designed to detect and mitigate health risks early while promoting a sustained culture of care across all levels of the organisation.

Safety Week 2025 - Shendra Plant:

Theme: Safety & Well-being: Crucial for Viksit Bharat

Our annual Safety Week at the Shendra plant exempli ed our commitment to participative safety governance. The initiative featured:

Hands-on re safety drills and rst-aid training

Emergency response simulations

Creative engagement through poster and slogan contests

Inter-departmental safety competitions

Total workforce participation was encouraged underscoring our belief that safety is a shared responsibility. The 2025 theme rea rmed NIBLs alignment with Indias national development goals and our own Environmental, Social and Governance (ESG) vision.

ESG Alignment & Progress:

We continue to align our safety and environmental initiatives with national and global benchmarks. This integrated approach has yielded measurable results: lower incident rates, higher employee engagement scores, and greater operational resilience. Our EHS performance contributes directly to NIBLs broader ESG commitments.

. Human Resources:

At NIBL, we view our employees not merely as contributors, but as partners in progress. Our people- rst philosophy places emphasis on empowerment, engagement, and continuous development recognising that our long-term success is intrinsically linked to the growth and satisfaction of our workforce.

People Strategy:

Our HR policies are designed to create a nurturing, high-performance environment. From competency-based hiring to structured career development programmes, we aim to attract, retain, and develop top talent aligned with our business goals.

We have adopted agile people practices that promote inclusivity, diversity, and innovation. Our focus is on building future-ready teams through upskilling, leadership training, and digital learning initiatives. Key pillars of our HR strategy include:

? Competency-based recruitment and structured onboarding

? Continuous learning: upskilling, leadership development, and digital learning platforms

? management systems aligned to individual and organisational objectives

? Employee engagement surveys with actioned follow-through

V. Living Our Core Values:

Our organisational culture is grounded in a set of core values that guide our decisions and de ne how we work together. These values are not aspirational statements they are lived daily across every function and level of NIBL Group.

1. Flexibility & Adaptability Responding swiftly to change and customer needs.

2. Everyone is the MD of their Own Task Every employee is a leader in their role.

3. No Compromise on Quality Quality is non-negotiable across all functions.

4. Loyalty & Transparency Upholding trust and openness with all stakeholders.

5. Customer First in All Actions Putting customer success at the heart of everything we do.

6. Growth with Pro ts Delivering results responsibly and sustainably.

7. Fun at Work Fostering happiness, positivity, and camaraderie.

8. Keep it Simple Keeping processes e cient, lean, and purposeful.

VI. Commitment to a Harassment-Free Workplace:

NIBL is committed to maintaining a workplace where every individual is treated with dignity and respect. Our robust Code of Conduct and Anti-Harassment policies establish a zero-tolerance approach to discrimination and misconduct of any kind.

Mandatory ethics and compliance training is conducted for all employees during onboarding and at regular intervals, ensuring continued alignment with our ethical framework and legal responsibilities under applicable laws.

VII. Equal Opportunity Employer:

Diversity and meritocracy are at the heart of our talent strategy. NIBL is an equal opportunity employer where hiring, promotions, and career development decisions are based purely on capability and performance irrespective of race, gender, age, religion, disability, or background.

We actively monitor and review our diversity metrics on a regular basis. Any reports of bias or unfair treatment are swiftly investigated and resolved with due diligence, ensuring accountability at every level.

VIII. Positive Working Environment:

Building a Vibrant and Connected Culture:

At NIBL, we believe a strong organisational culture is built through connection and celebration. We host regular engagement initiatives that strengthen team bonds and foster a shared sense of pride and purpose, including:

Festival celebrations and cultural events

Wellness challenges and tness campaigns

Employee appreciation weeks and recognition programmes

Inter-departmental competitions and knowledge-sharing sessions

These touchpoints translate into improved collaboration, higher morale, and sustained productivity across the organisation.

IX. No Child Labour Policy:

NIBL upholds the highest standards of human rights across our value chain. We maintain a strict zero-tolerance policy toward child labour, ensuring that no individual under the age of 18 is employed either directly or through third-party contractors.

All vendor and supplier agreements are explicitly aligned with this policy. Regular audits are conducted to verify compliance throughout our supply chain, reinforcing our commitment to ethical and socially responsible business practices.

X. Segment-wise Performance:

The Company operates within a single reportable business segment Industrial Bearings for the purposes of Accounting Standard 17. All assets, liabilities, and operational activities of the Company are directed toward and expended within this primary business segment.

XI. Risks and Concerns:

The economic and business environment is evolving rapidly. Technological transformation and cultural shifts are reshaping industries, markets, and consumer expectations at an accelerating pace. NIBL operates in a sector exposed to:

Price volatility in raw materials and key industrial inputs

Dependency on inputs that must meet stringent quality standards

Limited substitution options for certain critical natural resources

Macroeconomic uctuations a ecting demand across served industries

The Companys risk management framework is designed to identify, assess, and mitigate these exposures in a timely and structured manner, ensuring business continuity and the protection of stakeholder interests.

XII. Internal Control Systems and Their Adequacy:

The Company maintains a vigilant and structured approach to internal controls. Management has devised Internal Control Systems aimed at:

Safeguarding the Companys assets from loss, misappropriation, or misuse

Controlling costs and driving operational e ciency

Ensuring compliance with applicable statutes, regulations, and internal policies

Enabling e ective management of working capital and nancial resources

These systems are designed in alignment with the Companys business plans and overall growth objectives, ensuring the interests of all stakeholders are adequately protected. Internal controls are reviewed periodically and strengthened to re ect changes in the operating environment and organisational scale.

	On behalf of the Board
	For NRB Industrial Bearings Limited
	Sd/-
	Devesh Singh Sahney
	Chairman & Managing Director
	(DIN: 00003956)
Place: Mumbai
Date : May 28, 2026