SKF India (500472) Q2 26/27 earnings summary

Executive summary

• Q2FY27 product sales were ₹5,639 million, up 16% YoY and 2% QoQ; continuing-operations revenue was ₹5,958.1 million and PAT was ₹517.0 million.

• H1 product sales rose 19% to ₹11,151 million; EBITDA margin increased 87 bps YoY to 15.8%.

• Steel and supplier cost increases pressured Q2 margins ahead of customer repricing; most recovery is expected in the December quarter, with EBITDA margin above 15% targeted within the FY.

• Capacity expansions at Haridwar and Pune will be funded through internal accruals; SKF Vertevo launched on November 3, 2026.

Financial highlights

• Q2 net sales were ₹5,639 million versus ₹4,861 million, up 15.7% YoY; H1 net sales were ₹11,151 million versus ₹9,375 million, up 19%.

• Continuing-operations revenue was ₹5,958.1 million in Q2 and ₹11,836.0 million in H1; prior-year comparatives were ₹4,959.1 million and ₹9,584.1 million, respectively.

• Q2 EBITDA margin was 14.5% and PBT margin 11.7%, down 255 bps and 252 bps QoQ; Q2 PBT before exceptional items and tax was ₹698.0 million versus ₹491.3 million.

• H1 EBITDA was ₹1,869 million versus ₹1,431 million and PBT was ₹1,535.8 million versus ₹1,122.8 million.

• Continuing-operations PAT was ₹517.0 million in Q2 and ₹1,135.4 million in H1, versus ₹287.2 million and ₹754.6 million in the prior-year periods.

Outlook and guidance

• Most supplier cost inflation is expected to be recovered through customer pricing in the December quarter, with possible spillover; price revisions may include arrears from customer-specific effective dates.

• Management expects EBITDA margin to return above 15% within the current FY and described growth of 15% or higher as reasonable to expect.

• Revenue is expected to benefit from pricing, while new capacity will replace some traded volumes; SKF Industrial trading is expected to become minimal or negligible over the next couple of years.

• Exports are expected to remain ~10% of revenue mix.

• Low-friction passenger-vehicle offerings are aligned with CAFE-III; commercial-vehicle BS-VII opportunities remain in development, with nominations expected no earlier than late Q2 next year.