SKF India (500472) Q1 26/27 earnings summary

Executive summary

• Revenue for April–June 2026 reached INR 5.9 billion, up 27% YoY, with sales up 22% YoY and nearly flat sequentially, reflecting strong sales momentum.

• EBITDA margin improved to 17.1%, up 7 bps YoY and 540 bps QoQ; profit before tax margin rose to 14.3%, up 61 bps YoY and 527 bps QoQ, with no exceptional items impacting the quarter.

• Gross margin for the quarter was 51%, up from 44.5% in the previous quarter, driven by product mix and inventory revaluation.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2026, were reviewed and approved by the Board and auditors, with an unmodified review conclusion issued.

• The company completed a major demerger, with the Industrial Undertaking spun off into a separate entity effective October 1, 2025, impacting comparability with prior periods.

Financial highlights

• Quarterly revenue reached INR 5,877.9 million, up 27% YoY, with total income at INR 6,001.6 million.

• Net sales grew 22.1% YoY but declined 0.7% sequentially; PBT margin increased to 14.3%.

• EBITDA for the quarter was INR 1,004 million, up 27.6% YoY and 44.6% QoQ.

• Consolidated profit after tax for the quarter was INR 619.2 million, compared to a loss of INR 197.6 million in the previous quarter.

• Basic and diluted EPS for the quarter were INR 12.5 on both consolidated and standalone bases.

Outlook and guidance

• Revenue growth for FY 2027 expected to be around 20%, higher than previous 12% guidance.

• Margin levels (around 17%) are expected to remain stable over the next two years.

• CapEx of INR 170–180 crore planned for FY 2027, with total INR 500 crore by FY 2028, mainly for capacity expansion and backward integration.

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

• New business wins in electric mobility to ramp up from late 2028.