SKF Q2 FY26 Earnings Results

SKF India Ltd is a leading supplier of products, solutions & services within rolling bearing, seals, mechatronics, and lubrication systems.

Q2 FY26 Earnings Results

Revenue from Operations: ₹1,309.06 crore, up 2.02% QoQ and 5.21% YoY, marking the highest quarterly revenue on record for SKF India.
Net Profit (PAT): ₹105.49 crore, up 11.99% YoY but down 10.76% QoQ due to margin pressures.
Profit Before Tax (PBT): ₹140.62 crore, up 10.89% YoY.
Operating Margin contracted to 12.66% from 13.04% QoQ, and sharply down from 23.45% in Q4 FY25 due to cost pressures including raw materials and employee expenses, which rose 20.53% and 19.96% YoY respectively.
Cash flow concerns noted with operating cash flow dropping sharply in FY25 to ₹203 crore from ₹624 crore in FY24.
Debtors turnover ratio declined, indicating longer collection cycles and stretched credit terms.
Management approved demerger plan for industrial unit to unlock value and improve agility.

Management expressed confidence in revenue growth despite margin headwinds, attributing margin pressure primarily to global raw material inflation and rising employee costs.
Emphasis on reversing margin compression through cost controls, operational efficiencies, and leveraging the demerger to create focused business units.
Long-term strategy revolves around capitalizing on industrial capex recovery and automotive sector momentum for growth acceleration.
Operating cash flow improvement and sustainable margin recovery remain key focus areas to assure earnings quality and investor confidence.

Revenue from Operations: ₹1,283.15 crore, an increase of 6.38% YoY.
Profit After Tax (PAT): ₹118.21 crore, down 25.62% YoY due to margin contraction.
Operating margin stood at 13.04% in Q1 FY26, indicating better margin situation than Q2 FY26.
Higher material costs and employee expenses impacted profits despite improved revenues.
The company reported consistent revenue growth amid challenging industrial conditions.

To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.