SKF India Ltd

Financial Performance

• Q1 FY27 revenue: INR 5.5 billion; YoY ~22%; QoQ −0.7%.
• Gross margin: YoY ~1% lower; QoQ ~6.5% higher; driven by mix and inventory revaluation.
• EBITDA: YoY +7 bps; QoQ +540 bps; demerger one-offs largely normalised.
• PBT margin: 14.3%; YoY +60 bps; QoQ +650 bps.
• OEM share of sales: 62%; 2W 54%; PV 31%; CV 15%.
• Exports share: 8%; Vehicle aftermarket: 20%; SKF Industrial: 10%.

Mix and Geography

• OEMs remain the largest channel at 62% of sales.
• Export focus is stable at ~8% of sales; domestic demand driving growth.
• Vehicle aftermarket and SKF Industrial together form ~30% of mix.

Capex and Projects

• Capex guidance: INR 500 crores; ~INR 170–180 crores to come online this year.
• Haridwar capacity addition underway; growth impact expected from next year.
• Total capex expected to be largely complete by FY28; potential spill to FY29.

Sustainability and CSR

• All three plants >98% renewable energy sourcing; decarbonized certification achieved.
• Bangalore water positivity: 2x; Haridwar: 2.57x; Pune pending.
• CSR: Special Olympics Bharat engagement; Gothia Cup Bronze medal win.

Q&A Highlights

• Revenue growth guidance raised to around 20% for FY27; earlier 12% guidance was higher.
• Capacity expansion: Haridwar capacity online in Q4; 170–180 crores capex this year; impact in FY28.
• EV bearings ramp: development phase; full stream production anticipated around 2028.
• Margin outlook: ~17% margin expected to be maintained for next ~2 years.
• Vehicle aftermarket: current volumes down; planned recovery in ~5 months; last-2-month discounts not continued.

AGM highlights

• 65th AGM confirms de-merger completed Oct 1, 2025.
• Automotive focus established; SKF India rebranding to SKF Vertevo.
• FY25-26 standalone revenue ₹2,129 crore.
• PBT ₹235 crore; PAT ₹117 crore.
• EBITDA margin at 15%.
• Final dividend ₹40 per share (400%).
• Revenue rose ~15.4% YoY; PBT affected by one-offs (~34%).
• CAPEX plan ₹500 crore through 2028; ₹170–200 crore in 2026.
• Expansions at Pune, Haridwar, Bangalore; current loading >90%.
• Audit unqualified; e-voting Aug 11–13, 2026; results to be announced.

Meeting Details

• Date and time: 17 August 2026 at 1:00 p.m. IST
• Type and mode: group investor call; virtual audio recording

Participants

• Key participants: company management (roles such as CEO/CFO/IR head; names not disclosed)

Purpose

• Purpose: discuss Q1 FY2026-27 earnings; investor interaction

Additional Notes

• Audio recording of the investor call available on the company's website

AGM video recording

• Video recording of the 65th AGM (14 Aug 2026) via VC/OAVM available on the investor information page.

Business overview

• Indian subsidiary manufacturing automotive bearings and related components.
• Strong emphasis on localization with 95%+ footprint.
• Strategic focus on Make in India and PLI incentives.

Operational highlights

• New PV wheel-end business won; India production footprint supports localization.
• PV customer expects local content, reduced forex exposure, and risk mitigation.
• Localization >95% enables Make in India / Atmanirbhar Bharat PLI incentives.
• Automotive plants achieved decarbonized status in Bangalore, Pune, Haridwar.
• MSIL Tech Day: 400+ engagements; interest in Low Friction Hub Bearing Unit.
• E-drive Conductive Brush Ring interest; opportunities aligned with MSIL roadmap.

Financial performance

• Revenue from Operations: 5,878 million INR in Jun-26.
• YoY revenue growth: 27.1%; QoQ: -1.1%.
• Gross Margin: 51.0% in Jun-26.
• EBITDA: 1,004 million INR; EBITDA margin: 17.1%.
• Profit Before Tax: 838 million INR; PBT margin: 14.3%.
• Sales YoY growth: 22%.

Strategic priorities & outlook

• Localization emphasis to sustain margin and meet PLI incentives.
• Expand EV-related bearing solutions through partnerships.
• Maintain Make in India momentum; deepen MSIL collaboration for EV/ICE platforms.
• Decarbonize plants supporting sustainability and cost competitiveness.

AGM Details

• Date: 14 August 2026; time and mode not disclosed.
• Annexure A contains the business presentation shown at the AGM.

Demerger & Brand Highlights

• Demerger of the Industrial business completed; forms two independent entities.
• Automotive arm becomes pure-play mobility solutions company.
• Vertevo announced as new brand for automotive business.
• Capacity expansion planned across Pune, Haridwar and Bengaluru.
• Investor engagement and sustainability focus emphasised post-demerger.

Performance & Partnerships

• Performance highlights reiterate disciplined operations and steady growth.
• Partnership recognitions cited with key customers.
• CSR and investor engagement initiatives showcased.

AGM details

• AGM held on 14 August 2026 at 1:00 PM IST via VC/OAVM.
• Voting conducted through remote e-voting and e-voting at AGM.

Key resolutions

• Resolution 1 (Ordinary): Adopt standalone and consolidated financial statements for FY 2025-26.
• Resolution 2 (Ordinary): Declare final dividend of ₹40 per equity share.
• Resolution 3 (Ordinary): Re-appoint Magnus Lennart Prick, Non-Executive, by rotation.
• Resolution 4 (Ordinary): Approve material related party transactions with SKF India (Industrial) Limited.
• Resolution 5 (Ordinary): Approve material related party transactions with SKF GmbH.
• Resolution 6 (Ordinary): Ratify remuneration of Cost Auditor for FY 2026-27.
• Resolution 7 (Special): Remuneration to Non-Executive Directors by way of Commission.
• Resolution 8 (Special): Remuneration payable to Mr. Gopal Subramanyam exceeding 50% of total NED remuneration.

Voting results

• Resolution 1: Passed; in-favour overwhelmingly.
• Resolution 2: Passed; in-favour overwhelmingly.
• Resolution 3: Passed; in-favour about 99.8%.
• Resolution 4: Passed; high in-favour.
• Resolution 5: Passed; high in-favour.
• Resolution 6: Passed; in-favour 99.9994%.
• Resolution 7: Passed; in-favour 99.9987%.
• Resolution 8: Passed; in-favour 99.8459%.

Dividend

• Final dividend of ₹40 per equity share approved.

Director changes

• Magnus Lennart Prick retires by rotation and offers for re-appointment.

Auditors

• Cost Auditor remuneration ratified for FY 2026-27.

Material related party transactions

• Approved RPTs with SKF India (Industrial) Limited and SKF GmbH.

Q1 FY2026-27 highlights

• Revenue from operations: INR 5,877.9 million, up 27.1% YoY.
• EBITDA: INR 1,003.9 million; EBITDA margin 17.1%.
• PBT: INR 837.8 million; margin 14.3%.
• PAT from continued operations: INR 618.4 million; up 0.4% YoY.
• Exceptional items include demerger-related non-recurring expenses.
• Two independently focused entities established after corporate restructuring.

Standalone highlights

• Revenue from operations: INR 5,877.9 million for quarter ended June 30, 2026.
• Total income: INR 6,001.6 million; total expenses: INR 5,163.8 million.
• Profit before tax: INR 837.8 million; tax expense: INR 219.4 million.
• Profit after tax from continuing operations: INR 618.4 million.
• EPS (basic and diluted) from continuing operations: INR 12.5.
• Total comprehensive income: INR 610.9 million.
• Labour Codes exceptional item: gratuity INR 24 million.

Consolidated highlights

• Profit before tax: INR 838.6 million; tax expense: INR 219.4 million.
• Profit after tax: INR 619.2 million.
• Total comprehensive income: INR 611.7 million.
• EPS (basic and diluted): INR 12.5.
• Stamp duty costs on land transfer borne by the Resulting Company: INR 1,639.2 million.

Demerger & notes

• Demerger completed Oct 1, 2025; Industrial Undertaking demerged into SKF India (Industrial) Limited.
• Resulting Company listed on BSE and NSE on Dec 5, 2025.
• AB SKF stake transferred to SKF Vertevo AB; 52.58% as of Mar 31, 2026.
• Comparatives re-presented; June 30, 2025 figures not comparable.
• Auditors Deloitte Haskins & Sells LLP issued unmodified review on results.
• Board approved unaudited results on Aug 12, 2026.