SKF India (Industrial) LimitedCapital Goods & EngineeringSKFINDUS
Q1 FY27 earnings callSKF India (Industrial) Limited
SKF India Industrial recorded solid revenue growth and is executing its strategy of localization, innovation, and significant capacity investment to capitalize on India's industrial tailwinds.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from operations | INR 9,708 million | 18.3% | |
| PBT Margin | 9.5% | — | |
| Cash conversion | 63.0% | — |
TL;DR
- Revenue grew 18.3% YoY and 2.6% QoQ to INR 9,708 million.
- PBT margin at 9.5% was impacted by one-time demerger IT costs and forex losses.
- Won significant new orders including a INR 140 crore gearbox order.
- Investing INR 900-950 crores in a new Pune plant to commence production in 2028.
- Aspiration is to double the business in five years with margin recovery to 14-16%.
Said on the call
“We have great tailwinds with the India growth story as sectors like wind, metals, heavy, cement, construction continue to buffet our growth.”
From the Q&A
| Topic | What management said |
|---|---|
| Margin Pressures | CFO quantified a 3% margin impact from demerger IT costs (~INR 150 million) and forex losses (~INR 147 million); expects IT costs to taper down by Q4 next year. |
| Margin Guidance | Aspiration is for 14-16% PBT margin near-term, being conservative due to ongoing investments; long-term ambition is 17-19%. |
| New Product & Growth Drivers | Innovation traction seen in general machinery (motors, pumps, gearboxes). Growth to be driven by infrastructure, steel, cement, railways, and wind energy capacity additions. |
| Capex Payback | The INR 900-950 crore investment in the new Pune factory is expected to have a payback period of five to seven years. |
| Customer Mix Margins | Distribution business (~34% of revenue) carries high double-digit margins, while OEM business (~54%) operates at high single-digit margins. |
Guidance
- PBT margin aspiration for the near term is 14% to 16%.
- Demerger-related IT costs are expected to continue for the next two quarters.
- New Pune plant investment of INR 900-950 crores is progressing as planned, with production start expected in 2028.
- Aspiration to double the business in five years.
Source
Summary written from the transcript filed by SKF India (Industrial) Limited for the call held on 14 Aug 2026; published 20 Aug 2026, 10:00 IST.