SKF India Limited has informed the Exchange about Investor Presentation
SKFINDIA · price
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Awaiting price reaction for this filing.
SKF India reported Q1 FY26 (April-June 2025) earnings with net sales of Rs 1,258.4 crore, up 6% year-on-year, driven by 13% growth in the Industrial segment while Automotive and Exports declined marginally. However, profit before tax (PBT) fell sharply to Rs 160.2 crore from Rs 213.7 crore last year, with PBT margin contracting by 530 basis points to 12.7%, attributed to one-time demerger expenses, adverse foreign exchange, and lower finance income. Net cash flow from operations improved 13% YoY to Rs 223 crore, with cash conversion jumping to 93% from 12% in the prior year quarter. The company also shared an update on its ongoing demerger plan to split Automotive and Industrial businesses into two independent listed entities, currently in the NCLT approval stage. Macro backdrop remains supportive with GDP growth of 6.5% and inflation easing to 2.7% in Q1 FY26.
The sharp 530 bps margin contraction and profit decline are near-term negatives, but the pressures appear largely one-time (demerger costs, forex, lower finance income). Improved cash flow and strong Industrial segment growth are positives. Demerger progress remains a key catalyst for re-rating once the two entities are separately listed.