SKF India Ltd (SKFINDIA)
🎯 Key Takeaways
- SKF India Ltd has undergone a strategic demerger in October 2025, emerging as a pure-play automotive bearing manufacturer focused on high-growth EV and mobility segments. The company is executing a capital-intensive growth phase with ₹500 crore CAPEX through 2028, targeting 90-95% capacity utilization and 4% revenue reinvestment in R&D.
- Revenue declined 1.1% QoQ to ₹588 in Q1FY27.
- ⚠️ Margin pressure persists despite revenue growth, as seen in flat PAT growth and compressed EBITDA margins, partly due to restructuring costs and high
📖 The Story
SKF India Ltd has undergone a strategic demerger in October 2025, emerging as a pure-play automotive bearing manufacturer focused on high-growth EV and mobility segments. The company is executing a capital-intensive growth phase with ₹500 crore CAPEX through 2028, targeting 90-95% capacity utilization and 4% revenue reinvestment in R&D. Despite strong top-line momentum, profitability remains constrained by margin pressure and restructuring costs, reflected in a 23.66% 1Y return and muted PAT growth. The business is in a reinvestment phase, balancing operational execution with long-term sustainability and technology leadership ambitions.
📰 What's Happening
The company completed its demerger on October 1, 2025, splitting into SKF India Limited (automotive) and SKF India (Industrial) Limited, with the former rebranded as 'SKF Vertevo'. At the 65th AGM on August 14, 2026, management highlighted ₹500 crore CAPEX through 2028, with ₹170-200 crore allocated for 2026, 90-95% capacity utilization, and 4% revenue R&D spend. Sustainability milestones include decarbonized plants, water-positive operations, and targets for 32% material emission reduction by 2030. Shareholders approved a ₹400/share dividend (400% payout) and all resolutions with 88.19% voting participation. The video recording of the AGM is now publicly accessible online.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 1,283 | 1,309 | 577 | 595 | 588 |
| Operating Profit | 145 | 143 | 66 | 17 | 71 |
| OPM % | 11.3% | 10.9% | 11.5% | 2.9% | 12.2% |
| Net Profit | 118 | 105 | 62 | -20 | 62 |
| EPS | ₹23.90 | ₹21.30 | ₹12.50 | ₹-4.00 | ₹12.50 |
Revenue shows volatility, peaking at ₹1,309 million in September 2025 before declining to ₹588 million in June 2026, while operating profitability remains inconsistent — EBITDA margin dipped to 12.2% in June 2026 from 11.3% in June 2025, despite revenue growth. Net profit declined 0.4% YoY in Q1 FY26-27 to ₹618.4 million, with PAT margin compressed due to exceptional restructuring costs. However, operational efficiency is evident in stable EBITDA and cost discipline. The company posted a ₹105 million net cash flow in March 2026, supported by ₹363 million operating cash flow, indicating healthy core cash generation despite capital expenditures.
🔮 Management Outlook & What's Next
Management emphasized sustainable growth through technology leadership, market expansion, and operational efficiency, with a strategic focus on electric mobility and decarbonization. Key forward-looking statements include targeting 32% direct material emission reduction and 35% transportation emission reduction from 2019 baselines by 2030, alongside development of high-speed EV bearings capable of 30,000 rpm. CAPEX of ₹500 crore through 2028 signals long-term investment in capacity and sustainability, while maintaining 4% revenue R&D spend to drive innovation. The rebranded 'SKF Vertevo' reflects a clear identity shift toward automotive specialization and EV-driven growth.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 49 | 49 | 49 | 49 |
| Reserves | 2,244 | 2,549 | 2,705 | 1,280 |
| Borrowings | 10 | 7 | 3 | 0 |
| Total Liabilities | 3,509 | 3,564 | 3,873 | 2,079 |
| Fixed Assets | 501 | 550 | 593 | 440 |
| Investments | 9 | 9 | 9 | 9 |
| Total Assets | 3,509 | 3,564 | 3,873 | 2,079 |
The balance sheet shows a strong equity base of ₹49 crore with reserves growing to ₹2,705 crore as of March 2026, indicating retained earnings and capitalization. Borrowings remain negligible at ₹3 crore, suggesting minimal leverage and a conservative capital structure. Total assets rose to ₹3,873 crore, up from ₹3,564 crore a year ago, reflecting investments in operations and possibly CAPEX. The absence of debt and growing reserves support financial flexibility, though heavy CAPEX commitments may strain cash flows if not offset by operational performance and margin recovery.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +363 |
| Investing | -182 |
| Financing | -76 |
| Net Cash Flow | +105 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 52.6% | 52.6% | 52.6% | 52.6% |
| FII | 7.0% | 7.0% | 7.1% | 6.9% |
| DII | 27.0% | 26.8% | 27.0% | 27.2% |
| Public | 10.0% | 10.4% | 10.1% | 10.2% |
| # Shareholders | 66,337 | 72,265 | 69,931 | 69,291 |
Institutional investor interest is rising, with FII holding increasing from 6.98% in Q2FY26 to 7.1% in Q4FY26, and DII also showing slight accumulation. Promoter holding remains stable at 52.58%, indicating confidence in long-term prospects. The growing number of shareholders (69,291 to 72,265) suggests rising retail participation. No pledging or significant dilution is evident, and the consistent promoter stake combined with rising institutional interest signals strengthening investor confidence despite short-term volatility.
⚖️ Peer Comparison — Bearings
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SCHAEFFLER | 62,521 | 49.9 | 28.2% | 20.7% | 0.00 |
| TIMKEN | 24,072 | 56.5 | 19.8% | 14.6% | 0.00 |
| SKFINDUS | 14,600 | 70.3 | 14.3% | 14.1% | 0.00 |
| SKFINDIA | 7,554 | 36.1 | 26.9% | 15.8% | 0.00 |
| NRBBEARING | 4,445 | 28.8 | 18.7% | 15.6% | 0.16 |
| 505703 | 566 | — | 204.8% | 150.2% | 0.00 |
| 526073 | 278 | 75.0 | 5.3% | 3.5% | 0.27 |
| BIMETAL | 245 | 21.4 | 6.6% | 5.0% | 0.01 |
| 505827 | 140 | 12.1 | 20.7% | 15.3% | 0.00 |
| NIBL | 75 | — | -103.6% | 26.5% | -1.15 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Margin pressure persists despite revenue growth, as seen in flat PAT growth and compressed EBITDA margins, partly due to restructuring costs and high CAPEX. 2. Revenue volatility is evident from sequential declines post-September 2025, raising concerns about demand sustainability in key automotive segments. 3. Heavy CAPEX commitments through 2028 may suppress short-term profitability if operational execution or EV demand slows. 4. Dependence on the automotive sector, now fully focused post-demerger, exposes the company to cyclical industry risks and regulatory shifts in emissions and EV adoption timelines.
📋 Recent Filings
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🟡 Board Meeting 20 August 2026SKF India held its 65th AGM on 14 August 2026, reaffirming its strategic shift to automotive post-de-merger effective 1 October 2025. Shareholders app...
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Announcement 18 August 2026SKF India announced that the audio recording of its Q1 FY27 earnings call held on 17 August 2026 is now available on its investor website, providing s...
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🟡 Board Meeting 17 August 2026SKF India announced that the video recording of its 65th Annual General Meeting held on 14 August 2026 at 1:00 PM IST is now available on its investor...
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Announcement 17 August 2026SKF India announced its Q1 FY2026-27 earnings call on August 17, 2026, at 13:00 IST, presenting results for the April-June 2026 quarter. The filing, i...
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🟡 Board Meeting 14 August 2026SKF India Limited announced its demerger completed on October 1, 2025, establishing two independent entities: SKF India Limited focused on automotive ...
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🟡 Board Meeting 14 August 2026SKF India shareholders approved all key resolutions at the 65th AGM on 14 August 2026, including a final dividend of **₹40 per share**, appointment of...
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🔴 Financial Results 13 August 2026SKF India reported Q1 FY26-27 revenue of **₹5,877.9 million**, up 27.1% YoY, with EBITDA at **₹1,003.9 million** (0.1% YoY growth) and PAT of **₹618.4...
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🟡 Board Meeting 12 August 2026SKF India Limited announced the outcome of its August 12, 2026 board meeting, approving unaudited Q1 FY2026 financial results (ended June 30, 2026) an...
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Announcement 11 August 2026SKF India announced an earnings call for Q1 FY2026-27 scheduled on August 17, 2026 at 1:00 p.m. IST, inviting analysts and institutional investors to ...
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share transfer 14 July 2026SKF India received a SEBI-mandated compliance certificate from its RTA, M/s MUFG Intime India, confirming that all dematerialized and rematerialized s...
🧠 Analyst's Read
SKF India is transitioning into a capital-intensive, sustainability-driven automotive bearing specialist with strong long-term tailwinds from EV adoption and decarbonization trends. While current margins are pressured and financials show volatility, the strategic clarity post-demerger, institutional accumulation, and focus on high-growth segments like EV bearings position it for potential re-rating over time. Investors should monitor margin recovery, CAPEX execution, and EV-related order wins as next catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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