Timken India (522113) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone revenue rose 25.4% YoY to INR 969 crore; PBT and net profit increased 29.5% and 29.7%, respectively.

• Q2 consolidated revenue was ₹9,860.40 million and net profit ₹1,208.95 million; capacity expansion and execution supported growth amid input-cost pressure and delayed rail activity.

Financial highlights

• Standalone Q2 revenue was INR 969 crore, up 25.4% YoY and 4.3% QoQ; net profit was ₹1,160.64 million versus ₹894.66 million.

• Standalone Q2 PBT was INR 156 crore versus INR 120 crore, up 29.5% YoY; PBT margin improved 50 bps to 16.1% and EBITDA margin was ~19.2%.

• Q2 consolidated revenue was ₹9,860.40 million versus ₹7,863.54 million; PBT was ₹1,628.73 million versus ₹1,262.70 million and net profit was ₹1,208.95 million versus ₹935.99 million.

• H1 consolidated revenue was ₹19,293.60 million and net profit ₹2,405.54 million; standalone revenue was ₹18,983.82 million and net profit ₹2,311.94 million.

• Consolidated Q2 basic and diluted EPS was ₹16.07 versus ₹12.44 YoY; H1 EPS was ₹31.98 versus ₹26.86.

Outlook and guidance

• Bharuch utilization was ~60% in Q2, with SRB at 70% and CRB below 60%; overall utilization is expected to reach 70%-75% by FY-end.

• Bharuch generated nearly INR 75 crore revenue in Q2; margins are expected to improve as utilization rises and the plant ramps up.

• Export momentum is expected to remain healthy, domestic demand is viewed as solid, and North American rail should add traction in coming quarters.

• Rail expansion trial runs are targeted for November-December, followed by PPAPs and line qualification; the schedule remains on target.

• Cost increases are intended to be passed through, though timing gaps may occur; Q4 calendar-year seasonality can soften exports and utilization.