SKF India Q3 FY26: Revenue Grows 16.3% QoQ, EBITDA Margin Improves to 14.29%
SKF India announced strong Q3 FY26 results with revenue of ₹5,766.4 million, showing 16.3% quarter-on-quarter growth and 3.20% year-on-year increase. The company reported profit before exceptional items of ₹964.4 million, demonstrating operational resilience following the industrial operations demerger completed in October 2025. Management highlighted steady demand across mobility segments and announced planned investments of ₹4,100–5,100 million by 2030 for capacity expansion.
*this image is generated using AI for illustrative purposes only.
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 strong operational resilience post-demerger. During the quarter, the company reported standalone revenue from operations of ₹5,766.4 million with profit before exceptional items and tax at ₹964.4 million, demonstrating robust market demand despite challenging macro conditions.
| Metric: | Q3 FY26 | Q3 FY25 | Previous Quarter | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Revenue from Operations: | ₹5,766.4 million | ₹5,586.8 million | ₹4,959.1 million | +3.20% | +16.30% |
| Total Income: | ₹6,070.7 million | ₹5,742.2 million | - | +5.70% | - |
| Net Profit: | ₹619.9 million | ₹804.9 million | - | -23.00% | - |
| Profit Before Exceptional Items: | ₹964.4 million | - | ₹491.3 million | - | +96.30% |
| Profit Before Tax: | ₹863.4 million | - | ₹1,407.7 million | - | -38.70% |
| Earnings Per Share: | ₹12.50 | ₹16.30 | - | -23.30% | - |
| EBITDA: | ₹824 million | ₹1.21 billion | - | -31.90% | - |
| EBITDA Margin: | 14.29% | 9.65% | - | +4.64pp | - |
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%.
Management Commentary and Strategic Focus
Speaking on the development, Shailesh Kumar Sharma, Managing Director of SKF India Limited, said, "Our performance this quarter, the first since the demerger, demonstrates steady demand across mobility segments and the strength of our operational fundamentals. We remain focused on supporting India's evolving automotive ecosystem, particularly in EV, two-wheelers, and safety-critical applications, through continued technology-led innovation and capacity expansion."
SKF Automotive remains focused on powering India's mobility transformation, with planned investments of ₹4,100–5,100 million by 2030 to expand manufacturing capacities across EV, two-wheeler, and wheel-end bearing segments at its facilities in Haridwar, Pune, and Bangalore.
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.
| Demerger Details: | Information |
|---|---|
| Effective Date: | October 01, 2025 |
| Share Exchange Ratio: | 1:1 |
| Shares Allotted: | 49,437,963 equity shares |
| Listing Date: | December 05, 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.
Historical Stock Returns for SKF India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.99% | +1.50% | -0.38% | -16.89% | +3.73% | -22.15% |
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