SKF India Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, marking a significant period following the completion of its industrial operations demerger. The Board of Directors approved the results at their meeting held on February 05, 2026.

Financial Performance Overview

The company's financial performance for Q3 FY26 reflects the impact of the demerger completed in October 2025. The consolidated and standalone results show identical figures as the subsidiary operations were separated during the quarter.

For the nine months ended December 31, 2025, the company reported standalone revenue from operations of ₹15,350.5 million compared to ₹13,525.8 million in the corresponding period of the previous year, representing a growth of 13.50%.

EBITDA Performance Analysis

The company's EBITDA performance showed mixed results during Q3 FY26. While absolute EBITDA declined significantly to ₹824 million from ₹1.21 billion in the corresponding quarter of the previous year, the EBITDA margin improved substantially to 14.29% compared to 9.65% in Q3 FY25. This margin improvement indicates enhanced operational efficiency despite the overall decline in absolute profitability metrics.

Demerger Implementation

The company successfully completed the demerger of its Industrial Undertaking during the quarter. The National Company Law Tribunal (NCLT) Mumbai Bench approved the Scheme of Arrangement on September 26, 2025, with the effective date set as October 01, 2025.

Following the demerger, SKF India (Industrial) Limited ceased to be a subsidiary of the company. The resulting company's equity shares were listed on both BSE and NSE on December 05, 2025.

Exceptional Items and Regulatory Impact

The company reported exceptional items totaling ₹101.0 million for Q3 FY26, comprising two main components. The Government of India notified four Labour Codes on November 21, 2025, consolidating 29 existing labour laws. The company assessed the incremental impact of these changes, resulting in an exceptional charge of ₹24 million primarily related to gratuity due to changes in wage definition.

Additionally, the company incurred demerger-related expenses of ₹77 million during the quarter, including IT costs, professional services, and estimated transfer premium payable to statutory authorities for land transfer under the demerger scheme.

Discontinued Operations Impact

The financial results present the Industrial Undertaking as discontinued operations in accordance with Ind AS 105 requirements. For the nine months ended December 31, 2025, discontinued operations contributed ₹1,487.9 million to net profit, compared to ₹1,812.0 million in the corresponding period of the previous year.

The Board of Directors, based on the Audit Committee's recommendation, appointed M/s Samdani & Co. as Tax and GST Auditors for Financial Year 2025-26. The company continues to monitor developments related to the finalization of Central and State Rules under the new Labour Codes.

SKF India has announced a significant expansion of its manufacturing capabilities with plans to establish a new facility in Pune. The ambitious project represents a substantial investment in the company's Indian operations and future growth prospects.

Investment Details

The company has outlined key parameters for its upcoming manufacturing facility:

Strategic Manufacturing Initiative

The new facility has been positioned as a "Factory of the Future," suggesting the incorporation of advanced manufacturing technologies and modern production capabilities. The Pune location adds to SKF India's manufacturing footprint in the region, leveraging the area's established industrial infrastructure.

Financial Framework

SKF India plans to fund the entire ₹653 crore investment through its own resources, indicating strong internal cash flows and financial stability. This self-funded approach demonstrates the company's confidence in the project's viability and its commitment to organic growth without external financing dependencies.

Implementation Timeline

The project timeline spanning 2026 to 2030 suggests a phased development approach, allowing for systematic planning and execution of the manufacturing facility. This extended timeline indicates the comprehensive nature of the facility development and the company's long-term strategic vision for its Indian operations.