SKF India (500472) Q4 25/26 earnings summary

Executive summary

• Achieved 3% quarter-on-quarter and 14.8% year-over-year sales growth in Q4 FY26, with full-year sales up 12.8% to INR 20.3 billion, driven by strong OEM demand and volume growth.

• Profit before tax margin declined by 770 bps sequentially to 9% in Q4 FY26, and full-year PBT margin dropped 694 bps year-over-year to 12.3%, impacted by one-off gains in the prior quarter, demerger-related costs, and regulatory changes.

• Approved unaudited Q4 and audited annual financial results for FY26, with unmodified auditor opinions on both standalone and consolidated statements.

• Board recommended a final dividend of Rs. 40 per equity share for FY26, subject to AGM approval.

• Major management changes included the resignation of Interim CFO Aashi Arora, appointment of Mayank Holani as CFO, and Prahlada GirishKumar joining the senior management team.

Financial highlights

• Q4 FY26 sales reached INR 5.55 billion, up 3% sequentially and 14.8% year-over-year, with OEMs contributing 66% of sales.

• Full-year FY26 sales totaled INR 20.3 billion, up 12.8% year-over-year, with standalone revenue at INR 21,295.9 million and consolidated revenue at INR 37,633.9 million.

• Standalone net profit for FY26 was INR 2,660.1 million, down from INR 5,658.1 million in FY25, reflecting the impact of discontinued operations and exceptional items.

• Cash flow for the year: INR 4.05 billion, with an 85% cash conversion ratio; cash and cash equivalents at year-end stood at INR 2,922.9 million.

• Q4 FY26 PBT (excluding exceptional items) was 534 MINR, with margin at 9.0%, down from 22.5% in Q4 FY25.

Outlook and guidance

• Sustainable PBT margin expected in the 11%-12% range in the near term, with long-term focus on improvement and a revenue CAGR of 6%-8% targeted through FY28.

• CapEx of INR 500 crores planned over FY26-FY28, with INR 200 crores to be spent in FY26-27.

• Dividend payout of INR 40 per share proposed, totaling INR 1,977.6 million, pending AGM approval.

• Continued emphasis on commercial excellence, value chain capacity building, and monitoring regulatory changes.