SKF India (Industrial) Delivers Strong Q4 FY26 Performance with 9.8% Sales Growth; Expands Localization and OEM Business

Published at : Sep 06, 2026 10:19 AM (IST)

Total Views : 24

SKF India (Industrial) Delivers Strong Q4 FY26 Performance with 9.8% Sales Growth; Expands Localization and OEM Business

Summary:
• Q4 sales rose 9.8% quarter-on-quarter to Rs. 950 crore, while adjusted profit before tax margin reached 11.5% despite demerger-related costs. 
• Growth was led by strong demand from wind energy, railways and steel sectors, alongside robust export performance. 
• The company strengthened its localization strategy, expanded manufacturing capacity and secured key OEM orders to support long-term profitable growth. 

The Print Times

Mumbai, May 13, 2026: SKF India (Industrial) Limited reported a strong operational performance for the fourth quarter of FY26, driven by healthy demand from key industrial sectors, higher OEM sales and continued progress in its localization strategy. Speaking during the company's Q4 & FY26 earnings conference call, Managing Director Mr. Mukund Vasudevan highlighted the company's resilient execution despite costs associated with the recent demerger.

Since 1907, SKF has been making some of the world’s most innovative bearings, seals, lubrication systems, condition monitoring solutions, and services to reduce friction. Less friction means more energy saved and by reducing it, we make industry smarter, more competitive, and more energy efficient, building a more sustainable future where we can all do more with less. SKF is represented in approximately 130 countries and has around 17,000 distributor locations worldwide.

Quarter-on-quarter sales increased 9.8% to Rs. 950 crore, while reported profit before tax margin improved by 1,731 basis points to 9.5%. Excluding one-time demerger-related expenses, the company delivered an adjusted profit before tax margin of 11.5% during the quarter.

The company also improved its working capital efficiency, reducing net working capital by 2.8% quarter-on-quarter to 18.7% of sales, supported primarily by lower inventory levels.

OEM Demand Drives Growth

SKF India (Industrial)'s growth was largely led by strong OEM demand across strategic industrial sectors.

The wind energy segment recorded a remarkable 91% quarter-on-quarter growth, supported by higher deliveries to customers including ZF and Suzlon. The metals segment also witnessed strong demand through orders from Tata Steel and SAIL, while the railway business grew approximately 12% during the quarter.

Sales to SKF India Limited's automotive operations also increased, contributing further to revenue growth.

While the distribution business witnessed a temporary decline due to tighter credit discipline and shipment adjustments for certain distributors, the management expressed confidence that distributor sales would recover over the coming quarters.

Exports also performed well, particularly to Europe and selected Southeast Asian markets.

Overall, the company reported nearly 10% quarter-on-quarter growth, while year-on-year sales growth stood at 31%, although management noted that year-on-year comparisons are affected by the demerger.

Product Mix Impacts Margins

Management explained that despite healthy profitability, adjusted margins moderated from 13.1% in Q3 FY26 to 11.5% in Q4 FY26, primarily due to a higher share of OEM business, which typically carries lower margins than the aftermarket distribution business.

Employee costs were also higher during the quarter because of full bonus accruals, compared with lower accruals in the previous quarter. The company expects both factors to normalize over the course of the financial year.

Working Capital and Cash Flow Improve

SKF India (Industrial) reported improved cash generation during the quarter, supported by lower inventory, better working capital management and certain tax adjustments.

Inventory as a percentage of sales declined from 16.9% to 16.0%, while higher receivables and payables linked to inter-company transactions are expected to normalize in subsequent quarters.

Management indicated that net working capital is expected to stabilize within the 19%–20% of sales range going forward.

ACES Strategy Focuses on Localization and Customer-Centric Growth

Mr. Vasudevan reiterated SKF India (Industrial)'s long-term ACES Strategy, which will guide the company through 2028.

The strategy focuses on accelerating localization, strengthening commercial excellence, improving execution capabilities and enhancing collaboration across the organization.

Localization remains a key priority, with the company aiming to increase domestic manufacturing while expanding sourcing from Indian suppliers to improve supply chain agility and reduce production costs.

Major OEM Wins Support Future Growth

As part of its customer-focused strategy, SKF India (Industrial) recently secured an order worth approximately Rs. 32.5 crore from one of India's largest tractor manufacturers.

The company developed customized tapered and cylindrical roller bearing solutions during the customer's product development stage, supplying components from its Pune and Ahmedabad facilities to support the customer's localization plans.

SKF also partnered with the railway sector to develop an integrated bearing, housing and sealing solution for suburban commuter trains, enabling axle loads to increase from 18 tonnes to 21 tonnes while extending maintenance intervals from 1 million kilometres to 1.2 million kilometres.

The company is now testing the platform for higher-speed applications, including trains operating at 180 kmph, opening opportunities in future rail projects.

Capacity Expansion Improves Productivity

SKF India (Industrial) also enhanced manufacturing capacity at its Pune facility for tapered roller bearings by optimizing existing equipment and adding high-speed machines.

The initiative increased annual capacity from 600,000 pieces to 886,000 pieces, reduced production costs by 18%, and improved manufacturing flexibility by reducing machine changeover time by 20%.

Management said these operational improvements will help support growing demand from agriculture, construction, mining, exports and aftermarket businesses while strengthening the company's long-term profitability.
 

Published at : Sep 06, 2026 10:19 AM (IST)

Total Views : 24