SKF India (Industrial) (SKFINDUS) Q1 26/27 earnings summary

Executive summary

• Achieved revenue of INR 9,708 million in Q1 FY27, up 18.3% year-over-year and 2.6% sequentially from Q4 FY26.

• Unaudited financial results for the quarter ended June 30, 2026, were approved, with statutory auditors issuing an unmodified review report.

• Interim dividend of Rs. 20 per equity share declared for FY 2026-27, with a record date of August 17, 2026.

• Leadership changes: Mr. Mukund Vasudevan resigned as Managing Director effective August 31, 2026, and Mr. Sujeeth Pai will be appointed Managing Director from September 1, 2026.

• Strong growth in wind, general machinery, and agriculture segments drove top-line performance.

Financial highlights

• Profit before tax (PBT) was INR 869 million, with a margin of 9.0%, down 56 bps sequentially due to forex loss.

• Profit for the quarter was INR 619.2 million, compared to INR 718.7 million in the same quarter last year.

• Operating cash flow stood at INR 547 million, with a cash conversion rate of 63%.

• Net working capital increased slightly to INR 6,275 million, representing 17.5% of revenue.

• Basic and diluted EPS for the quarter stood at INR 12.5, down from INR 14.5 year-over-year.

Outlook and guidance

• Positioned for sustainable and profitable growth, with a sharper capital allocation post-demerger.

• Investment plan of INR 800-950 crore through 2030 to expand manufacturing and future-ready capabilities.

• Expected to outgrow key segments such as wind, metals, and heavy industries.

• The company continues to monitor regulatory changes, especially regarding new Labour Codes, and will adjust accounting as needed.