Timken India Limited (NSE: TIMKEN) reported its third-quarter results for the fiscal year 2025-26, painting a picture of a company in the midst of a high-stakes transition. While the bearing giant clocked a healthy 14.1% year-on-year increase in revenue, the bottom line told a different story, with net profit plunging over 30% as expansion costs and operational headwinds took their toll.
The Numbers: Top-line Resilience, Bottom-line Retreat
For the quarter ended December 31, 2025, Timken India’s consolidated revenue from operations reached ₹779.67 crore, up from ₹683.35 crore in the same period last year. However, the aggressive growth strategy came at a steep price:
Net Profit: Fell to ₹54.56 crore, a sharp 30.2% decline YoY and a staggering 41.7% drop quarter-on-quarter (QoQ).
EBITDA: Reported at ₹101 crore, down approximately 9% YoY.
Operating Margins: Compressed significantly to 12.93%, compared to 16.21% in Q3 FY25 and 18.17% in the preceding quarter.
The market reacted swiftly to the margin erosion, with the stock sliding 6.44% to close near ₹3,041 shortly after the results were digested.
Con Call Highlights: Why the Squeeze?
In the post-earnings conference call held on February 9, 2026, management, led by Chairman and MD Sanjay Koul, attributed the margin pressure to a “perfect storm” of temporary and structural factors:
Bharuch Plant Ramp-up: The newly inaugurated expansion at the Bharuch facility designed to produce Spherical Roller Bearings (SRBs) and Cylindrical Roller Bearings (CRBs) is still in its gestation phase. High fixed costs and initial operational inefficiencies weighed heavily on this quarter’s numbers.
Strategic Acquisition: The company completed the ₹128.8 crore acquisition of Timken GGB Technology on December 1, 2025. Integration costs and the consolidation of this new entity slightly diluted immediate earnings.
Labor & Input Costs: Management cited the implementation of new Labor Codes in India, which added roughly ₹4.7 crore to employee benefit expenses. Furthermore, a spike in raw material costs and “stock purchases” disrupted the cost-to-revenue ratio.
Portfolio Pruning: Timken is actively “pruning” its Auto OEM business, exiting low-margin contracts in favor of high-value industrial and rail segments, a move that causes short-term revenue friction but promises long-term stability.
Segmental Performance & Outlook
| Segment | Performance Trend | Outlook for 2026-27 |
| Railways | Steady growth; ₹120Cr Jamshedpur expansion ongoing. | High single-digit growth expected as Vande Bharat orders scale. |
| Exports | Facing headwinds from US tariffs and weak truck demand. | Diversifying toward European and South-East Asian markets. |
| Industrial | Robust demand in wind and power transmission. | Expansion in Bharuch to serve as a global export hub. |
| Mobile (CV) | Modest recovery in the Indian Commercial Vehicle sector. | Beneficiary of infrastructure push. |
Investor Outlook: A Test of Patience
Investors are currently grappling with Timken India’s rich valuation. With a trailing P/E ratio near 53x, the company is priced for perfection, leaving little room for the margin “miss” seen this quarter.
However, the long-term thesis remains intact. Timken continues to operate with a zero-debt balance sheet and maintains a strong cash position of over ₹500 crore. The appointment of Michael Discenza (VP & CFO of the global parent company) to the Board, effective April 2026, signals a renewed focus on financial discipline and aligning the Indian arm with global efficiency standards.