SKF India (Industrial) Limited — Investor Meet, 19-05-2026: Analysts/Institutional Investor Meet/Con. Call Updates

SKF India (Industrial) Limited held an investor meeting on May 13, 2026, to discuss the financial results for the quarter and year ended March 31, 2026. The call covered the company's financial performance, macroeconomic updates, strategic initiatives, and future outlook.

**Financial Performance:**

The company reported a 9.8% quarter-on-quarter (QoQ) sales growth, reaching INR 9.5 billion. Profit before tax (PBT) was 9.5%, which adjusted for demerger-related one-time expenses, stood at 11.5%. Net working capital improved QoQ by 2.8%, at 18.7% of sales. Full financial year FY26 mix: Distribution 35%, OEM 51%, Exports 6%, Sale to SKF India 4%.

**Management Commentary and Outlook:**

Management expects margins to normalize to around 13% by year-end as demerger expenses conclude and the OEM/distribution mix improves. Long-term (FY28-FY30), the goal is to reach 15% margins through increased localization, operational efficiencies, and cost reduction. Management anticipates passing on FX impacts and raw material cost escalations (projected 3-4%) through price increases. A new Pune plant is planned for commissioning by the end of calendar year 2028, with a total capex of over INR 800 crores planned from FY27-FY30.

**Order Book & Operational Updates:**

Sales growth was driven by OEM business, particularly in wind (up 91% QoQ, driven by ZF and Suzlon orders), metals, and rail. Distribution business saw a dip due to distributor payment adjustments but is expected to recover. Localization and operational efficiency improvements are key strategic priorities.

**Analyst Q&A Highlights:**

Discussions focused on margin outlook, impact of OEM mix, demerger expense normalization, and cost escalations. Analysts also inquired about specific segment performance and the ACES strategy.

**Investor Angle:**

Management expressed confidence in achieving growth alongside margin improvement, leveraging localization and operational efficiencies for future profitability. The tone is cautiously optimistic, focused on strategic execution and market recovery.