SKF India Limited hosted its Q2 FY27 earnings conference call on November 5, 2026, discussing financial performance, macro indicators, and strategic initiatives. The company highlighted a year-on-year revenue growth driven by volume, while acknowledging margin pressures from cost inflation. Discussions also covered new product launches, including ceramic bearings for EVs, and a brand refresh. Management expressed confidence in recovering margins within the current financial year through customer negotiations.
SKF India Holds Q2 FY27 Earnings Conference Call
On November 5, 2026, SKF India Limited convened its Q2 FY27 earnings conference call to discuss the company’s financial performance and strategic outlook. The call, attended by key management personnel including CFO Mayank Holani, provided an in-depth analysis of the quarter’s results and future prospects.
Financial Performance and Margin Dynamics
The company reported a 16% year-on-year revenue growth, with a 2% increase quarter-on-quarter. EBITDA saw an improvement of 155 basis points year-on-year, though it declined by 255 basis points sequentially. This sequential drop in EBITDA and Profit Before Tax (PBT) was attributed to increased Cost of Goods Sold (COGS), primarily due to steel price inflation and value-addition costs passed on to suppliers. While H1 EBITDA and PBT were higher year-on-year, a timing gap in passing on price increases to customers was noted. Management anticipates recovering these costs and returning to earlier guidance levels within the current financial year.
Sales Performance and Business Mix
For the quarter, the OE business accounted for 66% of sales, followed by vehicle aftermarket (19%), exports (10%), and SKF Industrial (5%). The half-year mix showed a similar pattern with OE at 63%. Growth was primarily volume-driven, with a marginal impact from price or mix.
Key Developments and Future Outlook
A significant highlight was the new brand launch, representing a refreshed identity and personality for the company. In terms of new business wins, a major achievement was securing a driveline business deal with an Indian OEM for hybrid transmission technology, utilizing ceramic bearings and conductive bushes for electric vehicle offerings. The company also discussed its progress in electric vehicle (EV) product development, with a focus on high-performance bearings. Management expects the gradual introduction of new lines starting from the December quarter, contributing to revenue in FY28 and beyond.
Capex and Investment
SKF India reiterated its commitment to capacity expansion, with a significant capex plan of INR 500 crore-plus announced earlier. For the current fiscal, capex of approximately INR 200 crore is planned, with INR 140 crore being disclosed as per SEBI requirements. New channels are expected to come into production starting from the December quarter.
Investor Questions and Management Responses
During the Q&A session, investors inquired about margin recovery, the impact of BS7 implementation, export momentum, and the company’s strategy for the EV segment. Management assured that the company is well-positioned in the EV space and is ahead in high-technology products, with no reason to believe they are behind in the market.
Source: BSE
