SKFINDIANSESKF India Limited· BearingsLowNeutral
Announced Wed, 13 Aug · 18:29 IST

Pursuant to Clause 15(b)(iii) of Schedule III, Part A, Para A read with Regulation 30 (2), Regulation 30(6) & Regulation 46(2)(oa) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time to time) ( SEBI LODR ) and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024, please find enclosed herewith the transcript of Analyst / Institutional Investor meeting held on Thursday , 07th August 2025 at 10:30 am. The same will soon be uploaded on the website of the company for convenience of the shareholders.

Mgmt Guided Margin ImprovementMgmt Guided Margin PressureAnalyst Day Multiyear TargetsMgmt Evaded Key QuestionInvestor Communications View source PDF

SKFINDIA · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

SKF India reported Q1 FY26 net sales growth of ~6% year-on-year, with the Industrial segment growing strongly at 13% (driven by railways, wind energy, and heavy industries) while Automotive was largely flat at -0.4%. Margins came under significant pressure, dropping 530 basis points due to one-time demerger costs (INR 184 million), employee annual increments, higher depreciation from new factory investments, and adverse forex impact. Cash flow improved 13% year-on-year. The company provided an update on its Automotive-Industrial demerger, confirming NCLT filing, expected shareholder approval this quarter, and listing as two separate entities by Q4 CY2025. Management guided to an 8-10% revenue CAGR for Industrial and 10-12% for Automotive over the next 3 years, with margin recovery to the 16-19% range targeted by 2028, after near-term demerger cost impact of 1.5-2% on margins.

Likely market impact

Near-term margins remain pressured for the next 1-1.5 years due to ongoing demerger expenses, but the demerger is progressing on schedule and is expected to unlock value through two focused, independently managed entities. Long-term growth visibility and margin recovery roadmap remain intact, which is constructive for the stock over a 2-3 year horizon.