SKF India reported a 14.8% year-on-year increase in net sales to ₹5,550 million for the quarter ended March 31, 2026, driven by higher volumes in the automotive segment. Despite the revenue growth, the company's Profit Before Tax (PBT) margin contracted to 9.0% due to one-off factors in the prior quarter and costs related to the demerger of its industrial undertaking. Management has provided guidance targeting a sustainable PBT margin of 11-12% in the near term, supported by strategic capital investments and a focus on premiumization.

Q4 FY26 Financial Performance

For the quarter, the company achieved its highest quarterly sales of the financial year at ₹5,550 million, reflecting a 3% quarter-on-quarter growth and 14.8% year-on-year growth. The sales performance was primarily led by Original Equipment Manufacturers (OEM), which accounted for 66% of the revenue mix, followed by Distribution at 20%. SKF Industrial and Exports contributed 6% and 8%, respectively. PBT for the quarter stood at ₹534 million, excluding exceptional items, compared to ₹1,107 million in the corresponding period of the previous year.

*Excludes exceptional items.

Full Year Performance and Margins

For the full year FY26, net sales grew by 12.7% to ₹20,304 million from ₹18,007 million in FY25. However, full-year profitability faced pressure, with PBT excluding exceptional items dropping to ₹2,621 million from ₹3,552 million in the previous year. Consequently, the PBT margin for the year contracted to 12.3% from 19.2% in FY25. Management attributed the margin compression to a mix of factors, including product mix, discounts, and one-off costs associated with the demerger process.

Operational Highlights and Strategy

The company reported a cash conversion ratio of 85% for the year, with net cash flow from operations at ₹4,058 million. Net working capital improved by 3.7% year-on-year. Management outlined its strategic priorities under the 'RACE' framework, focusing on energy efficiency, accelerating growth through commercial excellence, and capacity development. The company plans a total capital expenditure of INR 500 crore between FY26 and FY28, with approximately INR 200 crore earmarked for FY26-27 to reduce dependency on traded goods and enhance localization.

SKF India has announced its audited financial results for the financial year ended March 31, 2026, alongside the recommendation of a final dividend. The Board of Directors, at its meeting held on May 13, 2026 (commencing at 16:00 hrs IST and concluding at 20:45 hrs IST), approved the Standalone and Consolidated Financial Results. The Statutory Auditors, M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, issued unmodified opinions on both the Unaudited Financial Results for the fourth quarter and the Annual Audited Financial Results for the financial year ended March 31, 2026. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SKF India published its financial results in Financial Express (all India Edition), Economic Times (Mumbai, Pune, Delhi & Bangalore Edition) in English, and Maharashtra Times (Pune Edition) in Marathi, with the advertisement dated May 15, 2026.

Financial Performance

For the financial year ended March 31, 2026, SKF India reported standalone Revenue from Operations of INR 21,295.9 million, reflecting a year-on-year growth of 15.4% and a quarter-on-quarter growth of 20.7%. The total standalone Net Profit for the period (after tax, for continuing and discontinued operations combined) stood at INR 2,660.1 million. On a consolidated basis, Revenue from Operations for the full year was INR 37,433.9 million. The following tables summarise the key standalone and consolidated financial metrics for the quarter and year ended March 31, 2026.

Consolidated Financial Results (INR in million)

Standalone Financial Results (INR in million)

Standalone Key Metrics Summary

Dividend Declaration

The Board of Directors has recommended a final dividend of INR 40 per equity share (400% on equity shares of INR 10 each) for the financial year ended March 31, 2026, subject to approval of shareholders at the ensuing Annual General Meeting. When approved by the members, this will result in a cash outflow of INR 1,977.14 million. The dividend shall be paid or dispatched within 30 days from the date of the AGM, if declared and approved by the members.

Annual General Meeting & Key Dates

The 65th Annual General Meeting of the Company for FY 2025-26 will be held via Video Conferencing/Other Audio-Visual Means on Friday, August 14, 2026 at 1:00 p.m. IST. Mr. Jayavant B Bhave from M/s. J B Bhave & Co., Practicing Company Secretaries, Pune, has been appointed as the scrutinizer for the e-voting process. The key dates associated with the AGM and dividend are outlined below:

National Securities Depository Limited (NSDL) has been appointed to provide e-voting, including remote e-voting, for the AGM.

Appointment of Cost Auditors

On the recommendation of the Audit Committee, the Board approved the appointment of M/s Joshi Apte and Associates (Firm Registration No. 000240), Cost Accountants, as Cost Auditors of the Company for the Financial Year 2025-26.

Key Management Appointments

In a significant leadership change, the Board approved the appointment of Mr. Mayank Holani as Chief Financial Officer (CFO) effective May 14, 2026. Mr. Holani succeeds Ms. Aashi Arora, who resigned as Interim CFO effective May 14, 2026, due to the conclusion of her interim assignment and a change in role. Mr. Holani brings over 23 years of experience, including six years as a CFO, having previously served at Indian Synthetic Rubber Private Limited and Schneider Electric Infrastructure Limited. Additionally, Mr. Prahlada GirishKumar was appointed as Head - Strategy and Special Projects and as a member of the Senior Management Team effective May 14, 2026.

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