Timken India Limited , a prominent player in the industrial sector, has made a strategic move towards sustainable energy consumption. The company has entered into an agreement to acquire a 26.1% equity stake in Sunstreamgreen Energy C&I Three Private Limited, a newly incorporated entity in the renewable energy sector.

Investment Details

Timken India will invest Rs 70,00,020 to purchase 7,00,002 equity shares at Rs 10 each in Sunstreamgreen Energy. This acquisition is aimed at enabling Timken India to purchase solar power under the Group Captive Scheme through a Power Purchase Agreement (PPA) with the target company.

About Sunstreamgreen Energy

Sunstreamgreen Energy C&I Three Private Limited, incorporated on July 14, 2025, is a new entrant in the renewable energy sector. The company's primary focus is on electricity generation through renewable sources, particularly solar power. As a recently established entity, Sunstreamgreen Energy is yet to commence operations and generate turnover.

Strategic Rationale

The investment aligns with Timken India's commitment to sustainable practices and energy efficiency. By acquiring a 26.1% stake, Timken India fulfills the regulatory requirement to maintain group captive status under applicable laws, which mandates a minimum 26% equity shareholding.

Transaction Timeline

The acquisition is expected to be completed by December 2025. Notably, this transaction does not fall under the category of related party transactions, and no governmental or regulatory approvals are required for this cash-based deal.

Implications for Timken India

This strategic investment positions Timken India to benefit from clean energy sources, potentially reducing its carbon footprint and energy costs in the long run. The move also demonstrates the company's proactive approach to adopting sustainable business practices and supporting the growth of India's renewable energy sector.

Disclosure and Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Timken India has duly informed the National Stock Exchange of India Limited and BSE Limited about this acquisition.

As Timken India takes this significant step towards green energy adoption, it sets an example for other industrial players to consider sustainable alternatives in their operations. The success of this venture could pave the way for more collaborations between established industrial firms and emerging renewable energy companies in India.

Timken India Limited , a leading manufacturer of engineered bearings and power transmission products, has reported a strong start to the fiscal year, with its best-ever first-quarter performance.

Revenue Growth and Profitability

The company's revenue from operations reached ₹808.80 crores in Q1, marking a 3.2% year-on-year increase. Despite this growth, profit before tax (PBT) remained flat at ₹130.40 crores. The PBT margin stood at a healthy 16.1%, compared to 16.6% in the same period last year, supported by cost control efforts amid softness in volumes and cost fluctuations.

Segment-wise Performance

Timken India's revenue mix for Q1 was as follows:

Bharuch Plant Update

The company has successfully capitalized one CRB (Cylindrical Roller Bearing) line at its Bharuch plant, commencing commercial production in late June. Billing for products from this new line started in July, with the first bearing exported to North America.

Expansion and Investments

Timken India remains committed to building capacity for growth and improving efficiency across its supply chain. The company is investing ₹120.00 crores in rail expansion at its Jamshedpur facility and ₹35.00 crores in plain bearings capacity at the Bharuch plant.

Market Outlook

Management expressed cautious optimism about demand across key industrial sectors. While certain segments like wind energy are performing well, others such as steel and cement are experiencing mixed trends. The railway sector is expected to show slow and steady growth over the long term.

Export Concerns and Opportunities

The company is closely monitoring potential impacts of U.S. tariffs on exports. However, management believes that even with tariffs, India remains competitive due to its cost advantages and manufacturing capabilities. Timken India is actively exploring opportunities in other markets such as Indonesia, Vietnam, South Africa, and Australia to diversify its export base.

Future Prospects

Timken India is exploring opportunities to leverage its parent company's technology in areas such as lubrication, chains, belts, and linear motion bearings. The company is also considering expansion into industrial motion products through various strategies, including greenfield projects, brownfield expansions, or potential M&A activities.

As Timken India continues to navigate global economic uncertainties, its focus remains on execution excellence, operational discipline, and delivering value to stakeholders. The company's strong start to the quarter, coupled with its strategic investments and market diversification efforts, positions it well for sustained growth in the coming quarters.