SKF India (500472) Q4 25/26 earnings summary

Executive summary

• Achieved 3% quarter-on-quarter and 14.8% year-over-year sales growth in Q4 FY26, with sales reaching INR 5.6 billion, driven by strong OEM demand and improved volumes.

• Full-year FY26 sales grew 12.8% to INR 20.3 billion, but profit before tax margin declined by 694 bps year-over-year to 12.3% due to one-off gains in the prior year and demerger-related costs.

• Approved unaudited Q4 and audited annual financial results for FY26, with unmodified auditor opinions on both standalone and consolidated statements.

• Board recommended a final dividend of Rs. 40 per equity share for FY26, subject to AGM approval.

• Major management changes included the appointment of Mayank Holani as CFO and Prahlada GirishKumar joining the senior management team.

Financial highlights

• Q4 FY26 net sales reached INR 5.55 billion, up 3% sequentially and 14.8% year-over-year, with OEM contributing 66% of sales.

• Full-year FY26 net sales totaled INR 20.3 billion, up 12.8% year-over-year, with standalone revenue from operations at INR 21,295.9 million.

• Standalone net profit for FY26 was INR 2,660.1 million, down from INR 5,658.1 million in FY25, reflecting the impact of discontinued operations and exceptional items.

• Q4 profit before tax margin dropped by 770 bps to 9% due to absence of prior quarter one-offs.

• Cash and cash equivalents at year-end stood at INR 2,922.9 million, with a cash conversion ratio of 85%.

Outlook and guidance

• Sustainable PBT margin expected in the 11%-12% range in the near term, with long-term focus on improvement and a targeted revenue CAGR of 6%-8% through 2028.

• CapEx of INR 500 crores planned over FY26–FY28, with INR 200 crores allocated for FY26–FY27.

• Dividend payout of INR 40 per share proposed, totaling INR 1,977.6 million, pending AGM approval.

• The company continues to monitor regulatory changes and will adjust for further impacts from new labour codes as needed.