SKF India (Industrial) Limited has appointed Sujeeth Pai as Managing Director, effective September 1, 2026. The appointment is subject to shareholder approval within three months.

Mr. Pai succeeds Mukund Vasudevan, who resigned as Managing Director on August 31, 2026, due to an internal role change within the SKF Group. Mr. Vasudevan was simultaneously appointed as a Non-Executive, Non-Independent Director starting September 1, 2026.

Key Details

• Appointee: Sujeeth Pai (DIN: 07763929)
• Former Position: Whole-Time Director
• New Position: Managing Director
• Effective Date: September 1, 2026
• Term: Five years
• Predecessor: Mukund Vasudevan (resigned as MD; now Non-Executive Director)

Mr. Pai ceased to be Whole-Time Director at the closure of business hours on August 31, 2026. His appointment as Managing Director follows the provisions of Section 203 of the Companies Act, 2013 and Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Profile and Regulatory Compliance

Mr. Pai holds a Mechanical Engineering degree from P.E.S.I.T, Bangalore, and an MBA from ISB, Hyderabad. He brings over 20 years of multidimensional experience in driving growth and profitability, including leading P&L across regions and delivering double-digit growth for businesses.

The company confirmed that Mr. Pai is not debarred from holding the office of Director by SEBI or any other authority. He is not related to any existing Directors, Key Managerial Personnel, or Promoters of the company.

Previous Leadership Transition

Mukund Vasudevan, who held the position of Managing Director until August 31, 2026, holds a Bachelor of Technology from IIT Mumbai and an MBA in Finance and Strategy from the University of Chicago. He has over 25 years of experience in P&L management, strategy development, sales, and M&A across India, the Middle East, and the USA.

Mr. Vasudevan submitted his resignation letter on August 4, 2026, confirming no material reasons aside from the internal role shift. He thanked the Board Members for their support during his tenure.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Poorva Bang, Company Secretary and Compliance Officer, signed the intimation dated September 1, 2026.

SKF India (Industrial) Limited reported a 13.8% year-on-year decline in net profit to ₹619.2 million for the first quarter ended June 30, 2026, driven by rising operational costs that outpaced top-line growth. While revenue from operations surged 18.3% to ₹9,707.7 million, margin compression resulted in a lower bottom line compared to the previous year’s period. The Board of Directors declared an interim dividend of ₹20 per equity share, signaling confidence in cash flows despite the profit dip.

The Board meeting held on August 11, 2026, approved the unaudited financial results reviewed by Statutory Auditors Deloitte Haskins & Sells LLP, which issued an unmodified opinion. In a significant leadership transition, Mukund Vasudevan resigned as Managing Director effective August 31, 2026, due to a role change within the SKF Group. He will be appointed as a Non-Executive, Non-Independent Director starting September 1, 2026. Sujeeth Pai was elevated from Whole-Time Director to Managing Director for a five-year term, subject to shareholder approval under Regulation 17(1C) of the SEBI LODR.

Financial Performance Highlights

Revenue from operations grew robustly to ₹9,707.7 million in Q1FY27, up from ₹8,206.3 million in the same quarter last year. This represents a sequential growth of 2.6% from ₹9,457.2 million in Q4FY26. However, total expenses increased by 21.7% to ₹8,934.0 million, primarily due to higher purchases of stock-in-trade and other expenses. Profit before tax stood at ₹869.2 million, down from ₹970.9 million in Q1FY26 and slightly lower than ₹899.7 million in Q4FY26.

The company’s total income rose to ₹9,803.2 million, aided by other income of ₹95.5 million. However, the increase in finance costs to ₹5.6 million from ₹1.1 million and depreciation expense to ₹102.8 million from ₹70.4 million contributed to the pressure on margins. Income tax expense was recorded at ₹250.0 million.

Strategic Growth Drivers and Market Context

Management highlighted strong top-line growth across the Wind, General Machinery, and Agriculture sectors. The company has operationalized a new Tapered Roller Bearing (TRB) manufacturing line, adding capacity of 3 million units annually to support future growth and reduce exposure to imports. Innovation initiatives include railway wheel-set bearing solutions extending maintenance intervals by up to 20%, bearings with operating capability up to 250°C for the food segment, and energy-efficient hybrid bearings for next-generation electric drives.

Macroeconomic indicators remain robust, with India’s GDP growth at 7.0% in Q1FY27. Industrial Production (IIP) growth rebounded to 5.7%, signaling improved manufacturing momentum. The wind energy sector continues to expand, with India’s wind capacity reaching 57 GW, a 10% year-on-year increase. SKF India secured key contracts, including a ₹140 crore deal with a global gearbox OEM in the wind sector and a ₹35 crore contract with a leading tractor OEM in agriculture.

Customer and Segment Mix

The company’s customer mix shifted slightly, with OEM customers accounting for 54% of revenue in Q1FY27, up from 52% in Q4FY26. Distribution channels contributed 34%, while exports and SKF India (Auto) made up 12%. Segment-wise, General Machinery (GM) remained the largest contributor at 26%, followed by Rail (20%), Wind (16%), Agriculture & Electrical (15%), Heavy Industries (12%), and Metals (11%).

What the Numbers Show

The divergence between revenue growth (+18.3%) and expense inflation (+21.7%) highlights a margin squeeze in the current quarter. Specifically, purchases of stock-in-trade jumped 40.4% to ₹6,271.4 million, significantly outpacing revenue growth. This suggests either aggressive inventory buildup or higher input costs. Additionally, while profit before tax declined modestly by 10.5%, net profit fell more sharply by 13.8%, indicating that tax efficiency did not fully offset the operational margin decline. The declaration of a substantial interim dividend of ₹20 per share (₹989 million total outflow) demonstrates strong liquidity, even as operating profitability faced headwinds.

Operating cash flow stood at ₹547 million in Q1FY27, resulting in a cash conversion ratio of 63%. Net working capital increased marginally to ₹6,275 million, representing 17.5% of revenue, down from 18.1% in the previous quarter. Management noted that the 9% PBT margin was maintained despite headwinds from currency fluctuations and demerger-related expenses. The company is positioned for sustainable growth through an INR 800-950 crore investment plan focused on manufacturing expansion and future-ready capabilities through 2030.