SKF India Limited — Investor Meet, 13-08-2025: Analysts/Institutional Investor Meet/Con. Call Updates

SKF India reported 6% YoY sales growth for Q1 FY26. Industrial business surged 13% (railways, wind, heavy sectors), while Automotive was flat/slightly down. Cash flow improved 13%. Margins declined 530 bps due to one-time demerger costs (~INR 18.4 Cr from IT/consultants), higher employee costs, and FX impact. Demerger costs are expected to continue for ~1 year. Management targets 16-19% margins from FY28. The demerger aims to create two agile, focused entities for better growth and investor visibility. Industrial growth outlook is cautiously optimistic at 8-10% CAGR (FY28 target), driven by localization and new products. The company is confident about continued market share gains in Automotive through capacity expansion. They are expanding their service business which is growing fast (currently 3% of total revenue, 6% of industrial, target 20%).