SKF India Limited , a leading manufacturer of bearings and related components, has announced its financial results for the first quarter of fiscal year 2026 and conducted its 64th Annual General Meeting (AGM) on August 6, 2025.

Q1 FY26 Financial Highlights

SKF India reported a mixed financial performance for the quarter ended June 30, 2025:

• Standalone revenue from operations increased to ₹12,831.50 million, up from ₹12,062.20 million in the same quarter last year, marking a 6.38% year-on-year growth.
• Standalone profit for the period decreased to ₹1,186.00 million, compared to ₹1,590.40 million in the previous year's quarter, representing a 25.43% decline.
• On a consolidated basis, profit stood at ₹1,182.10 million, down from ₹1,589.30 million in the corresponding quarter, showing a 25.62% decrease.
• Basic earnings per share (EPS) for the quarter were ₹24.00 for standalone results and ₹23.90 for consolidated results.

The company's statutory auditors, Deloitte Haskins & Sells LLP, issued limited review reports with unmodified opinions on both standalone and consolidated results.

64th Annual General Meeting

SKF India held its 64th AGM on August 6, 2025, via video conferencing. Key highlights from the meeting include:

• The AGM was attended by 68 shareholders, representing 2,60,93,636 shares.
• All resolutions set out in the AGM notice were approved by the shareholders with the requisite majority.
• The company declared a final dividend of ₹14.50 per equity share for the financial year ended March 31, 2025.

Business Presentation Highlights

During the AGM, Mr. Mukund Vasudevan, Managing Director of SKF India, presented the company's performance for FY 2024-25:

The company also highlighted its focus on innovation, customer-centricity, and environmental stewardship. SKF India emphasized its commitment to diversity and inclusion, with 39% of new hires in FY 2024-25 being women and achieving 17.5% gender diversity across the workforce.

Demerger Strategy

SKF India provided an update on its demerger strategy, which aims to separate its Automotive and Industrial businesses. The company stated that the demerger process is on track, with the implementation schedule spanning from Q4 CY24 to Q4 CY25, subject to necessary approvals.

The demerger is expected to allow both businesses to:

• Grow faster in their respective sectors
• Accelerate innovation and decision-making
• Tailor solutions to specific customer needs

Looking Ahead

SKF India remains focused on strengthening its performance through consistent revenue and profit growth, executing its intelligent, clean, and customer-centric strategy, and transforming into two fit-for-purpose organizations to unlock more value for stakeholders.

The company also announced plans for a plant visit for shareholders at its Chinchwad Plant in Pune on September 10, 2025, demonstrating its commitment to transparency and shareholder engagement.

As SKF India continues to navigate the evolving market landscape, it aims to leverage its strong market position and innovative solutions to drive growth across its business segments.

SKF India Limited , a leading manufacturer of bearings and lubrication systems, has taken a significant step towards restructuring its operations. In a recent National Company Law Tribunal (NCLT) convened meeting, the company's equity shareholders approved a scheme of arrangement to demerge its industrial business into a separate entity, SKF India (Industrial) Limited.

Demerger Details

The approved scheme will result in the creation of two independent companies:

1. SKF India Limited - focusing on the automotive segment
2. SKF India (Industrial) Limited - dedicated to the industrial segment

Under the terms of the demerger, shareholders will receive one share in the new industrial company for every share held in SKF India Limited. This one-to-one share entitlement ratio was determined based on a report by PwC Business Consulting Services, registered valuers, and was deemed fair and reasonable by Saffron Capital Advisers Private Limited, an independent SEBI-registered merchant banker.

Timeline and Listing

The company expects to obtain NCLT approval by September-October 2025 and aims to complete the entire demerger process by Q4 2025. Upon effectiveness of the scheme and subject to necessary approvals, the equity shares of SKF India (Industrial) Limited will be listed on both BSE Limited and National Stock Exchange of India Limited.

Strategic Rationale

Mukund Vasudevan, Managing Director of SKF India, explained the rationale behind the demerger: "The purpose of this demerger is to create two fit-for-purpose companies, independently world-class companies. Both the automotive and industrial entities will be tuned to serve their respective market needs, with tailored business models, manufacturing processes, and innovation strategies."

Business Outlook

The demerger is expected to drive growth and profitability for both entities:

• Automotive Business: Currently 95% localized, with plans to expand product categories and align with industry trends such as electric vehicles and last-mile delivery.
• Industrial Business: Presently around 50% localized, with a target to increase localization to 70% over the next three years.

Increased Capital Expenditure

SKF India has significantly raised its capital expenditure guidance from about ₹150 crore to ₹350-400 crore per annum. This increase is attributed to:

1. Capacity expansion to meet growing demand in both automotive and industrial segments
2. Construction of a dedicated factory for the industrial business

Employee and Shareholder Considerations

The company assured that employees would be appropriately allocated between the two entities, maintaining SKF's commitment to employee welfare. For shareholders, the demerger aims to create more value by establishing two specialized, high-performing companies.

Conclusion

As SKF India moves forward with this strategic demerger, the company anticipates that the resulting fit-for-purpose entities will be better positioned to serve their respective markets, drive innovation, and ultimately deliver enhanced value to shareholders. The management remains focused on executing the demerger process efficiently while continuing to grow the business in India's dynamic market landscape.