SKF India (500472) Q1 26/27 earnings summary

Executive summary

• Revenue for April–June 2026 reached INR 5.9 billion, up 27% year-over-year, with sales up 22% to INR 5.5 billion and quarter-on-quarter revenue flat to slightly up.

• EBITDA margin improved to 17.1%, up 7 basis points year-over-year and 540 basis points sequentially, indicating stabilizing profitability.

• Profit before tax margin rose to 14.3%, up 61 basis points year-over-year and 527 basis points quarter-on-quarter, with no exceptional items impacting the quarter.

• Major new business wins included a significant wheel end contract with a large passenger vehicle OEM, with production starting Q4 2028, and multiple awards for delivery and technical partnership.

• Sustainability achievements included 98%+ renewable energy sourcing and water positivity at key plants, along with CSR initiatives such as supporting the Special Olympics Bharat team.

Financial highlights

• Consolidated revenue from operations for the quarter was INR 5,877.9 million, with total income at INR 6,001.6 million.

• Net sales grew 22.1% year-over-year but declined 0.7% sequentially; EBITDA for the quarter was INR 1,004 million, up 27.6% year-over-year and 44.6% quarter-on-quarter.

• Profit before tax (PBT) was INR 838 million, up 32.8% year-over-year and 81.8% quarter-on-quarter; consolidated profit after tax was INR 619.2 million.

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

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

Outlook and guidance

• Revenue growth expected to moderate to 20% for the full year, above previous 12% guidance, with margin levels around 17% expected to be sustainable over the next two years.

• Capacity expansion underway, with INR 170–180 crore CapEx planned for the year and total INR 500 crore by FY2028, including new capacity in Haridwar.

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

• Favorable macroeconomic indicators, including higher automotive production and stable manufacturing PMI, support continued growth.