SKF India Limited announced its Q1 FY27 results, showcasing a robust 22% year-over-year revenue growth to INR 5.5 billion. The company also reported improved EBITDA and profit before tax, driven by strong volume growth and favorable price mix. Management highlighted successful customer engagements and initiatives in electric mobility and sustainability.
SKF India Reports Strong Q1 FY27 Performance
SKF India Limited has announced its financial results for the first quarter of the financial year 2026-27 (Q1 FY27), reporting a significant 22% year-over-year increase in revenue, reaching INR 5.5 billion. The company experienced a marginal 0.7% decline quarter-on-quarter. This growth was primarily attributed to a 22% increase in volumes, with a price mix positively impacting sales by 5.6%.
Profitability and Margins
The company’s gross margin saw a slight year-on-year decrease of 1% but improved by 6.5% quarter-on-quarter, influenced by price, mix, and inflation. EBITDA remained stable with a marginal improvement of 7 basis points year-on-year and a substantial 540 basis points quarter-on-quarter. Profit before tax rose by approximately 60 basis points year-on-year and 650 basis points quarter-on-quarter, indicating a return to normal levels after accounting for demerger-related exceptional items in the previous quarter.
Segmental Performance
The sales mix for the quarter comprised approximately 62% from OEMs, 20% from distribution/vehicle aftermarket, 8% from exports, and 10% from SKF Industrial. The automotive sector remains the primary focus, with strategies in place to address capacity constraints and serve automotive customers effectively.
New Business and Initiatives
SKF India secured a notable wheel-end business from a large passenger vehicle manufacturer, marking a significant win for its localization efforts, scheduled to commence from Q4 CY 2028. The company also received recognition from Suzuki Motorcycle for its Best Delivery Award and from Degree Torque Transfer Solution for technical supplier partnership. In its CSR initiative, SKF India supported intellectually challenged youth at the Gothia Cup, with the team winning a bronze medal. Furthermore, all three SKF India plants have achieved over 98% renewable energy sourcing, earning them ‘decarbonized plant’ certification. The Bangalore and Haridwar sites have also demonstrated water positivity.
Future Outlook and Capex
The company anticipates revenue growth in the range of approximately 20% for the current financial year, surpassing its earlier guidance of 12%. SKF India is investing in capacity expansion, with a significant portion of its INR 500 crore capex, around INR 170-180 crore, expected to come online this year, primarily for backward integration and growth. This new capacity is projected to impact revenue from the next financial year onwards. The company also indicated a normalized margin in the range of 17% for the next couple of years.
Electric Mobility Developments
Businesses related to electric mobility are in the developmental phase, with full production ramp-up expected from mid-2027 onwards and full business visibility anticipated by 2028. A significant portion of the Haridwar capex is allocated towards traction motors for 2-wheelers.
Source: BSE
