SKF India (Industrial) Q4 FY26: Net Profit INR 1,189.7 mn
SKF India (Industrial) Limited reported a 9.8% QoQ increase in revenue to INR 9,457.2 million for Q4 FY26. The company posted a net profit of INR 1,189.7 million, recovering from a loss of INR 500.9 million in Q3 FY26. For the full year FY26, revenue stood at INR 34,403.6 million with a net profit of INR 2,176.7 million. The Board recommended a final dividend of INR 10 per share, subject to shareholder approval.
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SKF India (Industrial) Limited reported a 9.8% quarter-on-quarter (QoQ) increase in revenue from operations to INR 9,457.2 million for the fourth quarter ended March 31, 2026. The Board of Directors approved the unaudited financial results for the quarter and the audited annual results for the fiscal year at a meeting held on May 12, 2026. The statutory auditors, M/s. Deloitte Haskins & Sells LLP, issued unmodified review and audit opinions on the financial results for the quarter and year ended March 31, 2026, respectively.
Q4 FY26 and Full-Year Financial Performance
For the full year ended March 31, 2026, revenue from operations stood at INR 34,403.6 million. The company reported a net profit of INR 1,189.7 million for Q4 FY26, compared to a loss of INR 500.9 million in the preceding quarter. For the full year, the net profit was INR 2,176.7 million. The following table summarises the key financial metrics:
| Particulars: | Q4 FY26 (Unaudited) | Q3 FY26 (Unaudited) | FY26 (Audited) |
|---|---|---|---|
| Revenue from Operations (INR mn): | 9,457.2 | 8,609.5 | 34,403.6 |
| Other Income (INR mn): | 174.8 | 139.5 | 591.2 |
| Total Income (INR mn): | 9,632.0 | 8,749.0 | 34,994.8 |
| Cost of Materials Consumed (INR mn): | 1,622.5 | 1,316.0 | 5,638.4 |
| Purchases of Stock-in-Trade (INR mn): | 6,066.0 | 4,008.4 | 18,120.2 |
| Changes in Inventories (INR mn): | (1,295.3) | 400.1 | (514.4) |
| Employee Benefits Expense (INR mn): | 571.4 | 487.6 | 2,152.9 |
| Finance Costs (INR mn): | 0.2 | 0.1 | 2.1 |
| Depreciation & Amortisation (INR mn): | 85.7 | 78.5 | 313.8 |
| Other Expenses (INR mn): | 1,681.8 | 1,328.9 | 5,108.1 |
| Total Expenses (INR mn): | 8,732.3 | 7,619.6 | 30,821.1 |
| Profit Before Exceptional Items & Tax (INR mn): | 899.7 | 1,129.4 | 4,173.7 |
| Exceptional Items (INR mn): | — | 1,800.8 | 1,961.0 |
| Profit/(Loss) Before Tax (INR mn): | 899.7 | (671.4) | 2,212.7 |
| Net Profit/(Loss) for the Period (INR mn): | 1,189.7 | (500.9) | 2,176.7 |
| Other Comprehensive Income/(Loss) (INR mn): | (8.8) | 30.6 | 38.1 |
| Total Comprehensive Income/(Loss) (INR mn): | 1,180.9 | (470.3) | 2,214.8 |
| Basic & Diluted EPS (INR): | 24.00 | (10.10) | 44.00 |
Management Commentary
Mukund Vasudevan, MD, SKF India (Industrial) Limited and President – India, Southeast Asia and Middle East, commented on the results: "We had a strong close to FY 2025-26. In the second full quarter as an independent, and focussed industrial entity, SKF India (Industrial) delivered robust sales growth of 9.8% (QoQ). Building on the foundation laid post-demerger, we are seeing sustained momentum across key sectors, including wind, railways and metals. Our underlying performance was anchored in sharp customer focus, operational excellence and execution discipline. With India's manufacturing and infrastructure growth setting pace, we are well-positioned to leverage this growth cycle, drawing on our strengths in advanced engineering capabilities, localisation, and customer-centric solutions. Our focus remains steadfast on solving evolving business needs and enabling customers to do more with less." The company is embedding sustainability, precision manufacturing, and digital capabilities across its operations to support sectors integral to India's economic growth and Southeast Asia's evolving industrial needs.
Operational Highlights and Margins
The company achieved solid net sales growth with margins improving QoQ. Profit before tax (PBT) for Q4 FY26 was INR 899.7 million, a significant improvement from the loss of INR 671.4 million in Q3 FY26, which was impacted by exceptional items of INR 1,800.8 million. The PBT margin for Q4 FY26 stood at 9.5%. The growth was driven by a 20.1% QoQ increase in OEM sales and a 25.7% rise in inter-company sales to SKF India. Net working capital (NWC) improved significantly, declining to 18.7% of net sales in Q4 FY26 from 21.5% in the previous quarter. Consequently, net cash flow from operations improved to INR 2,370 million in Q4 FY26 from a negative INR 238 million in Q3 FY26.
Balance Sheet Highlights
As at March 31, 2026, total assets stood at INR 26,745.0 million, up from INR 19,147.3 million as at March 31, 2025. Total equity increased to INR 14,768.5 million from INR 13,110.4 million. Cash and cash equivalents at year-end were INR 5,691.7 million, compared to INR 4,531.4 million at the start of the year. The following table presents key balance sheet items:
| Particulars: | March 31, 2026 (Audited) | March 31, 2025 (Unaudited) |
|---|---|---|
| Property, Plant and Equipment (INR mn): | 1,841.8 | 1,560.7 |
| Right-of-Use Assets (INR mn): | 39.8 | 14.1 |
| Capital Work-in-Progress (INR mn): | 1,342.7 | 89.8 |
| Investment Properties (INR mn): | 231.2 | 241.1 |
| Loans – Non-Current (INR mn): | 1,576.0 | 1,576.0 |
| Deferred Tax Assets (net) (INR mn): | 650.7 | 209.1 |
| Total Non-Current Assets (INR mn): | 5,963.0 | 3,810.4 |
| Inventories (INR mn): | 5,357.8 | 5,082.9 |
| Trade Receivables (INR mn): | 8,280.2 | 5,301.5 |
| Cash and Cash Equivalents (INR mn): | 5,691.7 | 4,531.4 |
| Total Current Assets (INR mn): | 20,782.0 | 15,336.9 |
| Total Assets (INR mn): | 26,745.0 | 19,147.3 |
| Equity Share Capital (INR mn): | 494.4 | 494.4 |
| Other Equity (INR mn): | 14,274.1 | 12,616.0 |
| Total Equity (INR mn): | 14,768.5 | 13,110.4 |
| Total Non-Current Liabilities (INR mn): | 77.0 | 159.8 |
| Trade Payables – MSME (INR mn): | 124.4 | 152.3 |
| Trade Payables – Others (INR mn): | 7,271.5 | 4,242.9 |
| Total Current Liabilities (INR mn): | 11,899.5 | 5,877.1 |
| Total Liabilities (INR mn): | 11,976.5 | 6,036.9 |
Cash Flow Statement
For the year ended March 31, 2026, net cash flow from operating activities before exceptional items was INR 3,599.4 million. After accounting for exceptional items of INR 1,961.0 million, net cash flow from operating activities was INR 1,638.4 million. The following table summarises the cash flow position:
| Particulars: | FY26 (Audited) |
|---|---|
| Profit Before Tax and Exceptional Items (INR mn): | 4,173.7 |
| Operating Profit Before Working Capital Changes (INR mn): | 4,057.2 |
| Cash Generated from Operations Before Exceptional Items (INR mn): | 4,658.2 |
| Direct Taxes Paid – net of refunds (INR mn): | (1,058.8) |
| Net Cash Flow from Operations (before exceptional items) (INR mn): | 3,599.4 |
| Exceptional Items (INR mn): | 1,961.0 |
| Net Cash Flow from Operations (after exceptional items) (INR mn): | 1,638.4 |
| Payments for PPE incl. Capital Work-in-Progress (INR mn): | (935.7) |
| Interest Received (INR mn): | 397.1 |
| Net Cash Outflow from Investing Activities (INR mn): | (460.8) |
| Net Cash Outflow from Financing Activities (INR mn): | (17.2) |
| Net Changes in Cash and Cash Equivalents (INR mn): | 1,160.3 |
| Cash and Cash Equivalents – Opening (INR mn): | 4,531.4 |
| Cash and Cash Equivalents – Closing (INR mn): | 5,691.7 |
Dividend Declaration
The Board of Directors has recommended a final dividend of INR 10 per equity share (face value INR 10 each) for the financial year ended March 31, 2026, subject to shareholder approval at the forthcoming 2nd Annual General Meeting (AGM). If approved, the total dividend payout will amount to INR 494.4 million. The record date for determining eligible shareholders has been fixed as Friday, July 3, 2026, and the dividend will be paid on or before Friday, September 11, 2026.
Exceptional Items and Demerger Background
During the year ended March 31, 2026, the company recognised exceptional items aggregating INR 1,961.0 million. These included demerger-related expenses for IT costs, professional services, and stamp duty of INR 286.9 million, along with an estimated transfer premium payable to statutory authorities for land registration of INR 1,639.2 million. Additionally, the company recognised an incremental financial impact of INR 34.9 million as a statutory impact of new Labour Codes, primarily arising from a change in wage definition related to gratuity, presented as an exceptional item for the quarter ended December 31, 2025 and year ended March 31, 2026.
SKF India (Industrial) Limited was incorporated on December 17, 2024, as the resulting entity under a Scheme of Arrangement involving the demerger of the Industrial Undertaking from SKF India Limited. The National Company Law Tribunal (NCLT), Mumbai Bench, approved the Scheme on September 26, 2025, with the appointed and effective date fixed as October 1, 2025. Pursuant to the Scheme, the company allotted 49,437,963 fully paid-up equity shares of face value INR 10 each to shareholders of SKF India Limited in a 1:1 share exchange ratio, and the equity shares were listed on BSE and NSE on December 5, 2025.
Tax-Related Disclosures
SKF India Limited entered into a Bilateral Advance Pricing Agreement (BAPA) with the Central Board of Direct Taxes (CBDT) in respect of financial years from FY 2012-13 to FY 2020-21. As the financial years covered under the BAPA precede the effective date of the demerger, the company recognised INR 49.9 million towards its share of secondary adjustments during the quarter and year ended March 31, 2026. Additionally, during the current quarter, the company adjusted tax expenses aggregating INR 556.6 million on profits for the period from April 1, 2025 to September 30, 2025, being the tax on profits prior to the appointed and effective date of demerger in accordance with the scheme of arrangement approved by NCLT.
About SKF
Since 1907, SKF has been making bearings, seals, lubrication systems, condition monitoring solutions, and services aimed at reducing friction. The company is represented in approximately 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2025 were SEK 91,583 million and the number of employees was 37,271.
How might SKF India (Industrial)'s planned capital investments—evidenced by the sharp rise in capital work-in-progress from INR 89.8 million to INR 1,342.7 million—translate into revenue capacity and margin expansion over the next two to three fiscal years?
Given the strong momentum in wind, railways, and metals sectors, how could potential slowdowns in India's infrastructure spending or shifts in government policy affect SKF India (Industrial)'s sector-specific growth trajectory?
With trade receivables surging nearly 56% year-on-year to INR 8,280.2 million, what credit risk management strategies might the company need to implement to prevent working capital deterioration in FY27?
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