SKP Bearing Industries Ltd (NSE: SKP) Q3 2026 Earnings Call dated Feb. 19, 2026
Corporate Participants:
Vinay Pandit — Strategy & Investor Relations Consulting
Shrinand Palshikar — Chairman and Managing Director
Shripada Patil — Chief Financial Officer & Director, Business Development
Analysts:
Pankit Shah — Analyst
Vimal Modi — Analyst
Pratham Shetia — Analyst
Rudraksh Raheja — Analyst
Amresh Kumar — Analyst
Presentation:
Vinay Pandit — Strategy & Investor Relations Consulting
Ladies and gentlemen, on behalf of Captify Consulting Investor relations team I welcome you all to the Q3 and 9 months FY26 post earnings conference call of SKP Bearing Industries Limited. Today on the call from the management team we have with us Mr. Sheenan Parshikar, Chairman and Managing Director along with his management team. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to brief us about the performance highlights for the period ended December 2025.
The growth plan and vision for the coming year. Post which we will open the floor for Q and A. Over to the management team.
Shripada Patil — Chief Financial Officer & Director, Business Development
Thank you Vanessa. A very Good morning to one and all present here. I am Sripada Patil, CFO of SKP Bearing Industries Limited. We have gathered here for Q3 financial highlights. So a small brief on what happened in the previous quarter. So our standalone from quarter two to quarter three has increased substantially. As you can see in the figures it’s increased by 41% also our EBITDA margins have also increased slightly 9.5%. And even on a consolidated measure, if you go to see India and France entity consolidation, that too we see a substantial increase in the revenue of 38.9%.
Next slide, a few operation highlights of what’s happened in the roller plant. In the current plant with space constraint removed since the ball plant has shifted, we have started expansion in the roller plant itself. Some of the capacity has been added and utilization of the same has also been started. And further addition is on the way which is in line with our targets of 200 tons per month. Also we are focusing on our synergies and our export oriented focus has increased which has started to show in terms of revenue also there are many projects underway which might come into revenue into next quarter and in the next financial year.
Regarding the customer, we had undergone an initiative to balance out the portfolios to reduce the weightage of any one industry. So that balancing out strategy is working out well and we are seeing our portfolio diversify as well as growth in the revenue because of this initiative. Also in view of our France plant and new technology, new products are coming into play now which have started generating revenue on small basis which will give a substantial contribution in the coming year. And this ramp up is going underway as expected. Next plan regarding the ball plant. As we have said earlier that capacity has been Fully installed and now slowly utilization is coming into play.
More and more customers have started coming in and they are starting off with small sops. So numbers are improving. Also our utilization because of our flexible strategy with roller and ball. So we are having improvements in for certain departments and because of which all our lines are also functional and utilization is slowly on an increasing trend. With the improvement of our ball plant, we are having a good leverage on the international market where global multinationals are coming to SKP and showing a positive response. Also in the this financial your ISO is achievable after three months so that we have started the initiative and next year we will be eligible for automotive IITF certificates.
So all that is planned in the next financial year. Regarding the France operation, we see a good progress in the France operation even though we are seeing a slight dip in this particular quarter. But if you see the nine months we are in a good progress. Our customers have ramped up and it’s still on an improving trend. Also our strategy for aligning our operationals and utilizing our skill is all underway. So stainless steel products are improving. Scaling of operations is ongoing. Also customer engagement is better in all the plants. And one of the key wins is that we are looking.
You know our target of 100cr is on and we are looking forward to fulfilling it this year. And rest assured, with the mother of all deals coming into play, our France plant and India plants are both having a good traction ahead. Next please. As I’ve explained earlier, you can see the utilization our roller plant capacity itself has slightly increased and similarly utilization has increased because of our customer demand. Even on the ball plant, our capacity has now installed and that is utilizing the utilization percentage might look small, but since the capacity overall has increased. So I would say it’s a good figure.
Next please. This is a view of our international strategy. So last year if we see our exports were 2% of the overall revenue. This year our exports have increased to 5% of overall revenue and we are looking to improve it further by the end of this financial year. Next please, a small view of our manufacturing facilities. Our plant one, which we are using as R and D center for developing some of our specialized machines and trial and errors in technology. Plant two, which is our head office as well here we are being specific specializations in rollers I.e.
needle cylindricals and special products which are the demand of our customers and plant tree specifically for ball manufacturing. Next please. And our France plant transplant is more into precision of stainless steel balls, miniature balls and if you go to see there are Special coated balls and these sort of special products in the ball segment are being used in previously known as BJ. So we had taken over 95 year old French company Validated Warrant Industries and now it has become SKP France. So there we are having a vast diverse portfolio and even the customer segment over there is quite vast.
So in India if you see we have more of automotives and technical. There we have more of pharma, cosmetics and all other industries. And in view when we took over this acquisition there were a presence of over 400 assets in one roof. Such a diverse portfolio. So it is a good synergy and a complimentary takeover for us which is showing results. Now. Some of our products, needle rollers, these are going into axles and bearings. Industrial machinery spins that way. Next please. Cylindrical rollers. Cylindrical rollers are more for heavy machinery, heavy loads. So these are going into again bearing your applications and these pins also cylindrical rollers also find their application in international market in machineries.
So that’s another new market which we’re exploring. Next please. Precision pins. They’re going into gearboxes and anywhere where holding of two components is required. Next, Balls. Balls have like anything which moves, rotates at high speed requires balls. So our balls are going into many, many applications. Water pumps, accelerators, etc. This is a photograph of some of our laboratory and instruments. High end instruments available for testing at your at our facilities. And these enable us to reach international clients of which have precision requirement. Next please. Our way forward. As as you must have seen our previous strategies have coming into play and now we are seeing a better improvement.
Our way forward for the coming quarters and next financial year is improving the utilization of Jammar plant, that is our doll plant. And so there we are improving the utilization. Our France subsidy has completed a two year milestone and we are looking to turn green in the coming financial year. Also our roller capacity is increasing as well as the utilization is increasing along with it because we are having customers over here. Demand is good. Export acceleration is ongoing as per our vision. So our export right now is at 5%. We are, we’re focusing on improving it further.
Also in view of our international base. Now SKP is looking to target international clients. Clients with they are plants in multiple continents and that’s the way we are going to go forward. And France plant is going to stabilize now. But we are looking to not just stabilize it, to make it a big driver in the growth of SKP. And let’s see now how our targets go. So as you see we are looking to target this year. And I’ll open the question forum now for question answer sessions. And Mr. MD please over to you.
Questions and Answers:
operator
Thank you ma’. Am. Will I open the floor for question and answer session? Anybody who wishes to ask the question, please use the option of raise hand. If you are unable to do so, you can put your questions on the chat box also.
Vinay Pandit
Now until the question queue assembles, let me ask you a question. Considering the free trade agreement signed between India and Europe right now, how do you see it favorably playing out with us with our French acquisition? And do you think this will help in faster turnaround in France as well as absorption of technology and pushing manufacturing to India along? If you could guide the audience on that.
Shrinand Palshikar
There’s a good opportunity for SKP India as well as SKP France because now it’s. We already present in two segments two continents and this FTA where we had little challenges. Now it’s getting over plus on and about that earlier when we were there as only in India many European customers has got a particular questions of just in time. So we it need a delivery immediately. They they see this is a challenge. So now being present in two continents we can have a consignment stocks in in France and then export from there. It’s a very good opportunity for SKP both the entities now so we can explore new the opportunities as it comes.
We can encash it.
operator
Thank you. Sir, we have first question from the line of Pankit Shah.
Pankit Shah
Good morning SKB sir. Good morning sir. I have a question regarding our roller plant new plant, Plant three. So how is the traction going for that plant? And I believe we had couple of clients with with whom we already discussed that agreed for commercial terms. So have any new customers started for that plan yet?
Shrinand Palshikar
Currently say Plant 3 is basically a ball. So you are talking of ball plant, correct?
Pankit Shah
Okay, yeah, ball plants.
Shrinand Palshikar
Okay. No, no, no. Sorry. So ball many customers discussion their quality requirements. So it’s benchmarking samples, giving samples again receiving feedbacks. This process is on correct. For some the approval has come. For some the quality audits, the processes are going on. So we are at different stages for each different clients. In six months ago, three months ago, the driver was little because there was a QCO implementation was going to be done very fastly. So that was a impression. So because of that particular activity being getting delayed from government. So people are now little relaxed. So imports in full swing.
So that is a little challenge to us. So that is why the utilization of Plant 3 is not going the way we planned it to. Because we have already done all commercial settlement, everything. Only now question of utilization. But it’s okay. We are focusing right now on meeting all the customer needs. Cost wise. We are already meeting their requirements. So that is not a problem. But quality requirement and the system requirement has to be fulfilled. So that is the process right now going on. Let us hope. We are focusing to generate the revenue utilization as as fast as possible.
That’s our current focus. And we are all the capacity, Everything is available.
Pankit Shah
Yeah, so. So that is the reason. I mean our plant is ready since last almost one year, right?
Shrinand Palshikar
Not one year, but something like one year. But yes.
Pankit Shah
Yeah. So I mean can we expect new client, I mean material dispatches for new clients maybe in this quarter or next quarter?
Shrinand Palshikar
No, no dispatches. Everything is okay. You know what, we’re talking of a customer who is importing. I’ll give you an example. Right. He’s importing. Suppose.
Pankit Shah
Yeah, import substitution.
Shrinand Palshikar
He will not be. He will not buy 50 or 80% of his requirement from SKP. He will buy only 5% or 10% till the time he see. Okay, what is the performance level? Because our product are high precision and performance oriented. So the people has to be 100 assured of the performance and quality requirement. So this is a slow process. But. Okay, this is going on right now.
Shripada Patil
And I would like to add on the first point. It’s not that customers are not started. We have already started dispatches and it’s in the wrap up part. So usually in our industry ramping up process takes another one year. In the ramp up process people take small, small quantities. So if the annual demand, I’ll give an example. If the annual demand is 1 lakh, they will ramp up with 1000 pieces every month. After a few months then the ramp up will start. So we are in the ramp up stage. For certain customers those dispatches are started.
Some of them are six months down, some of them are two months down. That way multiple projects are on multiple stages. That.
Pankit Shah
Okay, so. So what you mean to say is the new clients which we found for this new plant, they have already started buying in small quantities,
Shripada Patil
correct.
Pankit Shah
Oh, okay, great. It. It is really great to know that. Okay. And sir, I also have a question for our friend subsidiary. So how is the traction going there? I believe we were targeting for a break even maybe in very near future, maybe this year or by next year. So I mean are we on track?
Shrinand Palshikar
Yes, very well.
Pankit Shah
Okay. And how is the demand? I mean I believe the sales has for the quarter one our sales from France subsidiary was good, but in Q2 and Q3. The sales was little less. Right. So can you please let us know what was the reason for the. For that?
Shrinand Palshikar
It’s a fluctuations. Many, many, many. Not one factor. Many factors were there because of that. The fluctuations were there. Last year we had many customers with smaller volumes. So these smaller volumes will you know what the way she explained these are like testing trials. Similar type of fluctuations were there. Now all these customers have now allocated capacities. Allocated volumes to us. So there is a big now turnarounds. So these will situations will change in time to come.
Pankit Shah
Okay. And sir, in your presentation you have mentioned that there is one new customer. I mean I believe one 100 crore customer which we have signed. So can you please let us know.
Shripada Patil
I think there is a mistake. That’s a revenue target which we are keeping for our financial year. Our customers are being added. But our consolidated target as a entity for SKP top line is 100 crores. For this financial year end.
Shrinand Palshikar
we are targeting.
Pankit Shah
Okay. Okay. Okay. No problem. Thanks a lot sir. Thank you for your time.
operator
Thank you. We’ll take the next question from the line of Vimal Modi.
Vimal Modi
Hi. Audible.
Shrinand Palshikar
Yes.
Vimal Modi
Thank you. Thank you so much. Sir, my name is Vimal Modi. I am from Bombay. I am first time attending this meeting. I am a shareholder actually since maybe two or three years I have. Let me first congratulate you sir. Because you started quarterly reporting. You know this is very, very important for investors like me who invest in SME transparency. It gives lot of, you know confidence in the company about the impact of trend deals. You have already highlighted something I would like to know. I have few queries, four or five queries, basic queries. I would like to know the total number of employees in our Indian operation as well as France operation.
If you can just tell me those numbers.
Shrinand Palshikar
In India operations we are around 200 plus. And in France when we took over it was 52 employees. Now we are around 31 employees.
Vimal Modi
52 to 31. We have reduced. What could be the reason for that, sir?
Shrinand Palshikar
Simple. Because we didn’t the revenue when we took over it was around 8 million. We didn’t have the customers return. So the customers, some of the customers are taking more time than expected. So it’s very important that you need to balance your revenue versus your employee strength. Because the employee cost is very high in Europe. So that’s the way you balance it out. It’s very important you be efficient. And this is what we believe in. To remain efficient and profitable. It’s very important. So this is A process which has taken more time because we had certain economic dismissal.
All activities customer coming back to meet customers. You know, it’s. Europe is not that easy because even if the customer sees you exist, even if the customer sees that you are doing very good, but they want a sustenance. So it’s just not you are present and how you sustainable you are. So sustainability also is very important for the European customers.
Vimal Modi
So are we able to build the confidence in the customer’s mindset now?
Shrinand Palshikar
Yes.
Vimal Modi
So we can, I mean do those orders which you are pilot orders now they have started materializing in a larger quantity and our quality is up to the expectation, right, sir?
Shrinand Palshikar
Yes, we were the. We are the market leader.
Vimal Modi
I see in. In France globally turnover just 45 crores. We are market leaders.
Shrinand Palshikar
We are 95 year old company. In France
Vimal Modi
turnover is just 45 crore. As per the report.
Shrinand Palshikar
No, no, it’s 95 year old. You just see the presentation.
Vimal Modi
No, not the old, I’m talking about the turnover. The top line.
Shrinand Palshikar
Sorry,
Vimal Modi
basically top line is just 45. Cr as per the report.
Shripada Patil
Comparing quality. So if you check the quality standard of our product, we are one of the top companies in the world who has given this sort of quality to international clients. Now regarding the turnover and transition and leadership, that’s a different company which we can work out and study the market and then we can come back with that quality is what the customers are requiring. And that quality. And usually in France, you know, European markets, what customers say, since you are a new entity, you wait for one year, you check if you’re profitable and then we’ll come back to you.
Vimal Modi
So yeah, yeah, that’s not a problem. Madam, I am quite excited. You know this French company we took over such a huge, I mean brand and quality of assets at a very, very dirt cheap price. Sorry, that. That that subsidiary made a loss of 5.81 cr. So I just wanted to understand like which are the major points, you know, which resulted in such a loss? Like what kind of expenses or why there was such a huge loss. Have we booked any one time expenses? That was not visible from the results. Which we have
Shrinand Palshikar
usually I have just now also I said economic dismissal. So economic dismissal is the cost. Is the cost. Like it’s a cost of when you. The some employees are reduced, you need to pay them. So this is a big cost. So. And these are one time cost. So when you reduce from 52 to 31, you paid something to these employees. So these are the cost which are the one time cost. If you must have observed our previous earners calls also we have mentioned the same. So this is now we are at the threshold level. Now it’s is the just enough people to run the company with the current the volumes. If we have a larger volumes probably we’ll have to add now to the manpower. You know this is already at the threshold levels.
Vimal Modi
Are we doing any kind of. I mean automation there a fresh automation so that we don’t need more number of people they are posting over there.
Shrinand Palshikar
Is one of the highest automation levels already.
Vimal Modi
Okay, so sorry as you said this 5.81 cr loss it won’t be now there in the coming quarter from French subsidiary. Right?
Shrinand Palshikar
See it’s very important there are. See there is a. You need to understand the models of European and other continents. I will not say only India, ASEAN and other continents. The compliance cost in Europe is very high. The compliance cost is to meet the requirements is the social systems. These are all systems. The cost is something. Okay. The product quality, product value also is different. But the compliance cost if the same product is manufactured in other locations there will be a cost difference. Okay. Now you need to have a very high productivity level to meet. They offset this particular. We are already at very good productivity levels in France. So I’m not afraid of that particular parameter. But the cost itself is little higher. So you need to have a fixed cost structure for France. So which is going to be there now you have higher utilization. Automatically it gets amortized. So that’s it. So we are focusing is to better volumes.
High cells grow automatically it will be good.
Vimal Modi
But as you said there are quite a. I mean large portion of this 5.81 cre is a one time. So I mean naturally it won’t come back, right? A portion of it
Shrinand Palshikar
exactly like that. There are many cost which is there is going to be there. Like rental is going to be there like energy costs are going to be there. There are some which is fixed cost. It is going to be there particularly the compensation automatically come down usual industry industry systems.
Vimal Modi
Sir, at the end of September quarter we had about 17 crore worth of inventory. Are we able to liquidate the same in current quarter?
Shrinand Palshikar
You must. You just analyze the current.
Vimal Modi
I mean inventory figures are not available now because.
Shrinand Palshikar
You need to analyze it properly it’s available.
Vimal Modi
So what is the present inventory level sir?
Shrinand Palshikar
In number of days?
Vimal Modi
Yes. No in. In terms of value.
Shripada Patil
Reply by email. You can just drop us the email of your.
Vimal Modi
No, I won’t drop up. You please make a note of my requirement and you just email Me.
Shripada Patil
Okay.
Vimal Modi
My email ID is Modi Vimalji M O D I V I M A L G at the red gmail dot com. Okay sir, one more point sir, which has upset me. You know this Captify had informed NSE on 16th of February that the management is available for physical meeting in Mumbai. I am from Mumbai. Okay. But it was the same date on the 16th morning. I’m not supposed to read each and every announcement on NSE every day. We should have planned it well in advance. Actually they should have informed. See if we had planned in advance, they should have informed us well in advance.
So I mean like this upsets me. You know. There is no.
Vinay Pandit
The announcement was made on the exchange at least four, five days before.
Vimal Modi
No, it is.
Vinay Pandit
That is. That is. No, no. One minute. One minute. Sir, that is a mistake on the part of the company whereby they declared the Concol invitation and by mistake put the covering letter of the 16th meeting. Then the con call invitation was resubmitted to the exchange with the correct covering letter. The 16th meeting letter intimation was given five days before and was also sent on email and WhatsApp to all the investors. If you will see the intimation on 16th. The second page of that letter is the con call invitation. So there was an error on the part of the company and they resubmitted the invitation to the exchange.
Vimal Modi
Thanks for participation. Sir. Actually I’m trying to, you know, come that side. I had called the company also a year, maybe a year and a half back that I wanted to see the facilities of our company to get more confidence and increase my investment. So I was not getting a proper response.
Vinay Pandit
So no problem. We’ll have our team connect with you on this and we’ll help you out on this front.
Vimal Modi
My mobile number is 9 3.
Vinay Pandit
No, no sir, don’t put it. Don’t put it on the call because we have it in the.
Vimal Modi
Sorry, you have it now see whenever such such kind of meetings are there. Now if you make it a point to email because we have very less number of shareholders. So you can. Only an email is zero course now why not to email?
Vinay Pandit
We’ll take the details from you sir. Offline.
Vimal Modi
Yeah, yeah. Thank you so much sir.
Vinay Pandit
Thank you. Thank you.
operator
We’ll take the next question from chat. It is from br. What kind of exposure we have towards defense and aerospace sector at the moment and plan for next two, three years.
Shrinand Palshikar
We are already present in both these sectors. So defense and aerospace we are already present. Now these sectors are very initial sectors. The we cannot Disclose you the volumes and all. But we are supporting this to both the sectors from many years. For aerospace, also for advanced engineering. We are focusing certain new technologies where they require certain very high precision requirements. So we are already working with the OEMs to develop the products.
operator
Their second question is would you like to give any guidance at consolidated level for FY27 and FY28?
Shrinand Palshikar
Oh, it’s very difficult to give in figures. Okay. Because growth is very good. Growth is planned. That’s what we can commit at this stage. Because these are the customers what we are focusing to bring back in 27 and 28. Especially for France entity. Because the France entity at one point of time was something doing something like 16 million euros. And our target is to reach to that level with the same customers to come back and plus add new customers. Where because of the duty and now FTA coming in place, we can encashe them. So these two factors we are right now focusing.
operator
Thank you, sir. We’ll take the next question from the line of Pratham Shetia. Please go ahead.
Pratham Shetia
Thanks for the opportunity.
Shrinand Palshikar
No problem.
Vinay Pandit
No, sir, this con call is a public call. If you can ask.
Pratham Shetia
Okay, okay. Okay. Okay. Okay. Okay. Okay. Fine. Fine. Modiji has given some many advice to you.
Vinay Pandit
Please. No problem. Is the transcript.
Pratham Shetia
No, no, I understand. I understand everything. Okay. Okay. Sir. Suppose the acquisition of the France company SKP is maintaining the profit at the from the Indian operation. But failed to generate the profit from the France operation. And you have mentioned the reason for the not making the profit. That the low level of utilization plus the one time cost in the quarter three. The more interesting is that from June, September and December all quarter the loss amount is increasing. In the last quarter it is 5.33 crore. So when the France business or France operation will start positive contribution.
Shrinand Palshikar
Very soon.
Pratham Shetia
Because. Because you said that there was a low level of utilization. And the company is the 95 years.
Shrinand Palshikar
I just explained you. We did acquisition in February 24th. Okay. All European customers majority their needs. Their requirement for the next year, usually last quarter they start discussing and settle. Okay. So we had already missed the bus for 24 in this because we did a acquisition. Many customers did a legal representation. They want a registration, you know, many procedures, due diligence like that. So 24 was a very, very difficult period for us to you know, do a revenue targets of our expectations. All the customers which were there present for 23 should come back to us in 24.
That was our expectation. But that was not the case with many customers. 25 was a better compared to 24. But then we have many cost which are like we planned to do a Because of that all the issues in 25 we have to win back all the convince customers see come visit us fulfill their needs quality needs, infrastructure needs, investments. So all these things we have done in 25 for many customers. Now all these customers have placed faith in us. But they are not still faith put a faith 100% to us. They are better compared to the where it was 0 in 24, 25 it was some level 26 it is much better levels now to reach to their highest level.
It will take maybe one more year, maybe two years. But then it’s okay. Now the customers which were present in in 2010-2020 or 23 now these customers are focused their requirements quality needs all identified. We are discussing with them continuously. We discussing we are not we have also given them, you know all the options that we can manufacture with India raw material other make raw materials manufacture in France India present provide to you just in solution, just in time solutions. So these customers are like puzzled right now that how you can provide the products which are competitive to India and China sitting in France.
So we have given them that these are the options and how do we meet this particular requirements sitting in France. So these are now opportunities being explored with all these customers and the that’s why I’m saying we have a huge opportunity and some customers which are still observing because they want a sustenance. You know, each our major customers do a financial audit. Now financial audit means if it is profitable or non profitable. If the non profitable are making losses, they will immediately question how do you going to recover these things on this all activities with major clients are in process.
So these these are big clients, not small clients. Big big clients and global presence. Many entities globally present. So they analyze. So this is a sustenance part. So this portion is right now shipping. Once we are in a turnaround and which I am confidence very soon it will be and then you will see the revenue growth everything.
Shripada Patil
I would like to add on to your point Pratham S. I like to add on to Sir’s point. Some of you might be looking at the consolidated statement together. You must have seen that the revenue of operations from previous quarter this quarter has increased despite having a 15 day holiday in December. Because Christmas holidays are a big festival in France and European countries because of which the plan to shut down. So despite having holidays we are having an improved turnaround. And if you check on the employee benefit cost. So we had A few of our long term employees retiring this quarter.
So when the employees retire we have to have a onetime cost which is to be given as per the European regulation rules. So these are the one time cost which came into play. So you must see the figure. The substantial part of quarter expense is because of the one time employee cost which you can see in the figures in the consolidated financial result.
Pratham Shetia
Okay, so. So, so whatever. The Pulsikar sir said that he was trying to suggest that the company France business is trying to attract the new customer. And when the new customers comes, they do the due diligence, technical as well as the financial. Okay, that’s fine. But what about the existing? When we take over the any company there must be a some relation with the some customer and they are supplying the goods, the bearings or the product, finished product to the someone that that client remains with the old old company. So that business should be continue. And when do we have when, when we take over the company was it the profitable or was it incurring the loss? And we.
We bought out the loss making unit and we tried to turn around that company. What is the status, sir?
Shrinand Palshikar
Yes. Is the company was making losses and the. The previous management was not interested in running it because they had no expertise in these type of fields. So that was the reason it was under insolvency. We were confident. See, it’s very simple. The customers which were there in 23 the value, the business value was around 80 million. Around 8 to 8.5 million business value. The revenue was 8 to 8.5 million in 23. Please mind 23, 24. You must have seen our figures went down drastically. Many of these customers did till 31st of January. The invoice is there.
On the 1st of February the invoice stop because the change of legal entity. We had tried to explain to all these customers that is just change of legal entity from BG to SKP. No change, no 4M change, no man, no material, no method. Everything is the same. So when you have everything the same, why you are like. You know. So they say it’s legal. So legal, legality. You need to have a financial audit, quality audits, all the due diligence of the customers. Now these are big customers now they took lot of time, lot of time.
You can imagine a customer which is there from day one for certain products the validation is still on. So it’s like that. They were there on 31st of January. So their validation is still on. Now when it’s a Indian company, their expectations also are Different. They want a better quality, they want a lesser cost. Okay, that’s okay. It’s a customer expectation. You need to meet meet their requirement. So it’s, it’s, it’s. It’s a challenge. Of course it’s a challenge. Big challenge. But I am very confident that Green is very very close by.
Shripada Patil
One more point I would like to add on. See the clients which we are working from France are all international clients. So we are dealing with OEMs who are having multiple plants in multiple countries and continents. And we as SKP France before previously known as VGI were a global supplier. So when these sort of entity change comes in in it is a standard procedure in OEMs and it is a regulatory requirement which we were not aware. That is a regulatory requirement for these companies to do a entire revalidation. And these sort of things take almost one year, one and a half year of turnaround.
So which is why sir is explaining that this activity itself takes a long time. Because we are dealing with big customers who are international, who are in itself are international oem.
Pratham Shetia
So, so, so. But can we understand that now that procedure is over and now the few customer have been acquired and there is a some concrete order book or something like that. Because the sir is mentioning that he is very confident about the turnaround. But every confidence must have some basis of the confidence. Say are we m panel with the new customer or we have go we got any confirm order or what is the status? How what are the basis of that confidence? Because when we acquired that company you at that time also you must have be confident about the business.
Shrinand Palshikar
You answered your own question. I cannot commit this. I cannot say something which without any proper data. All data is there. I cannot share in public domain.
Pratham Shetia
That’s fine. That’s fine. That’s fine sir.
Shrinand Palshikar
Okay. We have, we have a confirmed order book full requirement. Even customer have very clearly said that okay, you do a performance we will increase it to the next level also. So these are the confidence we have. We also discussing with the many customers which were not we were lost many years back. Also we are discussing and they have started talking also. So it’s not that easy. But okay. So it’s a very bright future for us. There’s no looking back now. So.
Pratham Shetia
So my last question is related to the Indian business operation. See are we doing the any only job work or are we selling the our the finished product in escape name or are we in our business model is B2B or B2C.
Shrinand Palshikar
Oh it’s there’s no jobbing. There’s nothing like that. We sell product directly to our customers. Tier 1, Tier 2. Like that, sir.
Shripada Patil
B2B.
Pratham Shetia
B2B. So. So we are supplying the product to either SKF team can or like that. Okay, sir, thank you. Thank you. That’s all from the my side.
operator
Thank you. We’ll take the next question from the line of Rudraksh Raheeja.
Rudraksh Raheja
Thank you for the opportunity. Sir. Is my voice audible?
Shrinand Palshikar
Yes. Good.
Rudraksh Raheja
Thank you. Sir, some questions on the France entity itself. You said that in Q4 there’s a lot of clarity, like how much the business you will get for the next year. So is it the nature of the business? Like by Q1 of the next year, you will have a decent clarity on how much the France will be contributing for the whole year.
Shrinand Palshikar
Usually previous year Q3 and Q4, the customers will start finalizing their volumes, their needs for future. Okay. And how much they do want to do allocated to their suppliers.
This is a common strategy adopted by most European customers. Now there could be some seasonal changes, plus or minus. Okay. But then more or less this is a strategy. So we have very clear visibility for Q for the financial 20 because there is calendar year. So for 26 we have very clarity as to. Okay, where do we stand? Okay. We could have more additions, but usually no substruction. I hope I’m clear.
Rudraksh Raheja
Yes. So since we are already done with Q3 and halfway Q4, sir, what kind of traction are we getting for calendar year 26 as you said.
Shrinand Palshikar
That’s why I already explained that this is our focus. In 26 calendar year we will be green. That’s for very clear.
Rudraksh Raheja
Understood. That’s good to hear answer. You said it could take at least one year or maybe even two years and you’re all. We are fine with that. On ramping up the France business. When you say two years, will we achieve the 16 million levels in two years? Is that what you meant?
Shrinand Palshikar
No, no, no. It’s not that easy. It’s not that easy. See, you have a global challenges now. You have all these customers. Majority of that is lost to very cheap imports.
When it’s a cheap imports manufacturing in a country where high compliance is there, high compliance cost is there. You still need to reach a very high of. Of productivity and meet meet the the cost requirement. Because these are the customers with very high volumes. Very, very high volumes. So they are very cost conscious. So to reach to that particular level, we may take little more time. May. I’m not sure about the timeline, but our focus is that you understand there are two things. One is you give up and one is you focus and you try to deliver the best possible.
So this is the drive. Our focus is to beat chip imports by manufacturing in pras only.
Rudraksh Raheja
Got it, sir. And sir, how is the business like do we onboard a customer and eventually they give you more orders. Like we increase the wallet share with them or whenever you onboard a customer, you get a very large order order. So which one off is it?
Shrinand Palshikar
Usually it is as I already explained, usually it is on initially small volumes. Then the the confidence increases. Then a larger volume and a larger volume. How do you the customer test you? They give you higher volumes.
All of a sudden they will reduce your volumes. All of a sudden it’s a usual systems, you know, they will test you the quality, they will check how you perform. It is just in time like that, you know, how do you perform? And then it’s a confidence back.
Rudraksh Raheja
So sir, is it possible to disclose like when we acquired the France business, how many customers did we had and what’s the status as of now?
Shrinand Palshikar
I already explained to you that value wise we had around 8 million. Just before 8 to 8.5 million. Before we did acquisition in 23 they were something like this.
When we did a acquisition post acquisition, our revenue was just 25%, something like that or even less probably. So you can imagine number of customers lost. So these customers are big customers. So volume value wise, their volumes are huge. These customers are still discussing as on date with us for product validation new generation requirement. And we are discussing with them, pushing them. We welcome them that you please visit us. You see the things what we are doing, it takes time. But it’s okay. It’s going on. This process is on. So our target first is to reach to the post acquisition hour level.
After that we have a target next target of reach to the 2010 levels. When it was something like 15, 16 million euros.
Rudraksh Raheja
Sir, value part I understand 8 million to 2 million the followers there. But in terms of number of customers, like you said now we are already discussing with those customers. I am assuming even if you crack them the order.
Shrinand Palshikar
Exactly. Number of customers in public domain. If that’s okay with you.
Rudraksh Raheja
All right, sir. All right. I’ll just pivot to the standalone business quarter. 3. The gross margins have taken a hit. Could you explain why is that the case?
Shrinand Palshikar
See, it could be little product shifts here or there, but there is nothing which is model change or nothing like that. You know, it’s. Everything is okay. Everything is the same way. It is, it is that could be because of some product or something. It could be little shift,
Rudraksh Raheja
sir. Actually it’s not that little since in quarter one and two we did 70% plus and it’s 58% this quarter. So 15% is little substantial.
So just wanted to get a better sense.
Shrinand Palshikar
Yeah, it could be some item which could be of low value additions we could have added. Because of that there could be a little shift. That is why the revenue increase is higher.
Rudraksh Raheja
Understood, sir. And sir, sustainable gross margins and EBITDA margins for standalone business, I understand France will. We are still working on all of that. But for standalone business, what could be the sustainable levels?
Shrinand Palshikar
This is more or less going to be sustained. More or less. This is a sustainable. There’s no issue for that because our manufacturing activities, our cost, everything is the same.
So there is no change going to be there.
Rudraksh Raheja
Sir, I would need a number on that part because as I explained the quarter volatility is there. So I can’t put a finger on. So could you just give me a number?
Shrinand Palshikar
You have to be you please send an email. Specific emails asking for specific information will reflect it.
Rudraksh Raheja
Got it, sir. So last question on the QCO part, since you said it’s delayed, so what’s going to be a strategy to ramp up the plant that is having a low cu.
Shrinand Palshikar
QCO is government driven. So it is. We cannot be dependent on something which is not in our hand. You know, our strategy is very strict. Even if that would have implemented, it would have been a big, big boost, something like that. If you are allowed, not allowed to import immediately, you need to find an alternative. Now this particular thing is not there with the big importers. So it’s very obvious that they are taking their own time.
We are not leaving our efforts or less efforts like that. So we are focusing on these customers, okay. To get back to them, focus on them, okay? So we provided and they also know that, okay, it is delayed, it is not cancelled, it could be implemented any time. Then in that case they have an option. So it’s. They are also working jointly with us to. That’s why as we already explained earlier, this trials, the product validation, this thing is going on. So this is going on. But it’s very simple. When you are under a pressure and when you under no pressure, the.
The timeline differs with the customers, you understand, because there is no priority and it becomes a priority. So these two things are there.
Rudraksh Raheja
Sir, at 23, are we breaking even on this plant, the ball plant?
Shrinand Palshikar
That’s okay. Break even is not a problem.
Rudraksh Raheja
Understood, sir. Thank You.
operator
Thank you. Rudraksh. We’ll take the next question from the chat which is from church. So what is our volume and realization for Q3FY26?
Shrinand Palshikar
It’s the same question. I think it’s better to ask for a email specific question because it’s a pure numbers what they are asking. So let a email to be sent to the company so we’ll reply.
operator
Okay sir. Sir, since there is no further questions Would you like to give any closing comments?
Vimal Modi
I have raised two question in the chat box please. You want me to read out?
Vinay Pandit
It’ll be better if you ask the question.
Vimal Modi
Actually I. I forgot. You know to this was in my list. I wanted to know the current local order book as well as the export order book. Point number one and point number two is IATF16949 certification was expired. You know, on trend on the 2nd of December 23rd. So are we able to renew? Two questions. Current local order book, current export order book and IATF 16949 certification. Why? I mean heavy renewed or are we able to renew it? Or any hurdles are there
Shripada Patil
from the IIT of certification. It’s a regular procedure. We are IITF certified company since past five to seven years. And as a regular procedure we have renewed the certificate.
Vimal Modi
It is renewed already. It is renewed already. I couldn’t find anywhere no that this. Information
Shripada Patil
it’s not updated in the public domain because it’s a very regular activity. And regarding the order book percentage we can say that the percentage of export as we mentioned in the call it is 5% of the overall revenue is export. So we are expecting that 5% to increase further by 1,2% in this quarter. But besides that I cannot disclose any order book for the entire financial year for the next all the companies.
Vimal Modi
All the companies are doing. Madam, I’m not asking any confidential information.
Shripada Patil
Then that’s a call which we have to take with the board which we will consider your suggestion. Thank you.
Vimal Modi
And sir, some of the
Shrinand Palshikar
one thing we do not have exactly as customer book. This customer order book is a close order book. We have open order book with the customers. Your There’s a difference between the order book what you are talking this order book are the close order book. That means it’s a specific orders. We have the open orders with customers. So it’s the open orders and the monthly schedules. So this is a system we are. We are following. So that is why when you. When you are asking this particular question is what is your order book? Because we get puzzled because our Order books are very large, Very large in value.
Very large. But we get monthly schedules. So we get monthly schedules. That is what is important for us. Because order book could be very big. But we have a monthly shirt as per that we have to supply. So there is no.
Vimal Modi
Okay. Okay. I mean rate contracts you are talking about. I think. Right. Rate contracts.
Shrinand Palshikar
Usually it’s automotive, all automotive, all major industries. Now when you have a specific supplier, dedicated supplier. Your sob is fixed. Number one, this sob could be 100% also and could be 50% also. Could be 75 depending on customer strategies. Okay. Number. Number two, we have open order. So these open orders could be offer very large volumes, very large values. But that is not important to us. What is most important to us? How much every monthly schedules we get. Because this our SOB is fixed. Monthly schedule is fixed that way. Okay.
Vimal Modi
Yeah. Yeah. So that’s. That’s very nice. Thank you so much. Sir, one of the some of the investor. You said you send us email and you will reply. So I will be missing those replies. So can you ensure that These were my questions also. But I did not raised. So will I get those information?
Shrinand Palshikar
See what is we can disclose. We will definitely let you know.
Vimal Modi
Whatever queries are answered which you are deferring and requesting emails. I would like to know the answers.
Shrinand Palshikar
No, no. See very simple. Whatever exact figures you ask. Someone is asking what is.
Vinay Pandit
I think the point that he’s trying to make is can he get answers to the other questions that you’re also.
Vimal Modi
Because you are deferring the answers by requesting for emails. That is little upsetting. But anyways, I mean you may be right. It’s a different issue. But being a. I’m a large investor. Sir, let me tell you. I wanted to increase further quantity. But I got. You know, I. I lost confidence in. Due to the lower performance. Now since you held the you. You declared the quarterly results. I am back to the seat actually now for investing more. So for me it is very, very important to know the whole thing. You know. Thank you, sir.
Vinay Pandit
Thank you. Vimalji. We’ll take one question from the chat from Mr. Anil Kumar Agalwar. Reasons for increase in expenses in consolidated P and L employee benefit expenses. So what’s. What’s the reason to drive up the employee benefit expenses?
Shripada Patil
I think we’ve answered this question which have retired after their tenure is over. So that’s a one time cost.
Vinay Pandit
Okay.
Shrinand Palshikar
That is one. And secondly, once in a year like what we have in Diwali time. You know, we have a bonus and all right. So similar thing is there in is Christmas and all is there Diwali? It’s like that. So you have a additional cost of salaries for the December. That is why. And we are reporting now quarter to quarter. So it’s. We are very transparent, we are very open. So whatever is there, it is shown now quarter that particular quarter, the last quarter. Q4 for the calendar year. You have all the bonus. You also have the employee cost which are retiring plus their benefits of retirement.
So that is why the one time cost is higher for Q3. Sorry, for Q3 for our financial year.
Vinay Pandit
Sure. We’ll take the next question from Amesh Kumar. Amesh, you can go ahead please.
Amresh Kumar
Sir, I’m new to the company so forgive me for asking very simple questions. So this French acquisition you have done, is it for acquiring some new technology or for acquiring the customers itself? Because I can see that you are manufacturing balls and rollers. They are also into similar kind of business. Or is it that they also manufacture taper roller bearings? Taper rollers and also outer or inner. So something like that. If you can give us some idea.
Shrinand Palshikar
No, is this company. The acquisition was with multiple thought processes. One thought process was the business overall business in European continent.
So you need to have a foothold in European continent, number one. Number two, you need to add the customers which are in multi multiple continents. With these customers you present them with two sites of manufacturing. One in India and one in Europe. So they. These customers which were not our customers could be bring to both India as well as to France. Second, third, the technology, the technology which is available over there. Many technology which is not available in India. So this is a technological transfer. Similarly being Indian, I am very proud to say that it’s not like that.
We are very down. So there are. We have certain advantages which over a period of time we have gained. So we also transfer our technology to them. Number four, the raw material, the processing which we do in in India, we can export to them and we can reduce the cost over there. Number five, the toolings and all what we have, the proficiency in manufacturing which we have developed over a period of time in India. We can have a cheaper, many cheaper cost over there of manufacturing. Number six, number of assets, what we acquired when doing a French.
It’s huge. It’s huge. Huge. Huge. It’s not small, it’s huge. And these particular assets to acquire is not that easy. Also number seven, when we did acquisitions before skp, there were eight or nine bidders. All of them want to break the company and take Away everything. We were the only company to run the company because we do not believe in breaking. We believe in building number eight. When we did acquisitions, our focus was very clear as to the customers to whim. We are presenting SKP as a global manufacturer with a site in India with a backup from India and present over there in their front.
All the customers should stay with us. So okay. This particular strategy, a little strategy has not exactly given us the fruits. But it’s okay. We are confident these customers because they are still watching us, they are instilled in touch with us. These customers will very soon will come back and then we have a different situation. I hope I have very clarified about our French entity acquisitions. What was strategy and what is our future plans?
Amresh Kumar
Got it, sir. So my next question is in our standalone business do we start our process from heat treatment or is it just the grinding that we do for balls and revolvers.
Shrinand Palshikar
We are end to end. We are the end to end manufacturers. We do everything probably in India. We are the only company which we which is totally end to end. Which are dedicated vendors to even supply raw material to us as per our specifications. So please understand we are the only company in India also probably very few companies globally which are end to end. So you take the wire rods, do the cold heading. You do the rough grinding, you do the hit also to do a wire processing. Please understand.
Amresh Kumar
Got it. Thank you so much.
Vinay Pandit
Thank you. We’ll take the last question from the day from Pankit Shah.
Pankit Shah
Thanks a lot for follow up. Sir, I have a question regarding our roller plant. I believe we were doing expansion and we were installing new machines for rollers. Right. So heavy commission these new machines and have we started commercial supply from new machines or where are. Exactly where do we stand?
Shrinand Palshikar
Is like this. It’s a. It’s a piecemeal additions. You know, it’s. We are at suppose level of X so we do not become 2x overnight. In our case it’s not like that. So we have a piecemeal additions of each steps. So we have a bottleneck of some particular. So we establish manufacturing capacities in those getting established put operational. That so you. We are adding to every steps. Some capacities are added. That is why you must have seen over one year back, maybe two years back the capacities and the current capacities level.
Okay. That is why you have the revenue growth also we are adding continuously. So some. Something is going to be added in this particular quarter. Something is going to be added in next quarter. Everything continuously addition. We have a good booking, we have a good customer demands. There is no problem. We have a very good export potential. Very, very good export potential. And we are just focusing right now because we don’t want to have anything, you know, you eat. You eat something which you cannot chew. We don’t want to do this particular thing. We believe in let it go slow, but it should be study and it should be very long term.
Pankit Shah
Okay. It’s great to know, sir, because I believe we were already utilizing more than 90% of our plant. Right. So. So that’s the reason I wanted to know.
Shrinand Palshikar
You must have seen our figures to two years back and probably our figures now. You will see the. There is a difference and still utilization level is the same.
Pankit Shah
Yeah, yeah, thanks. Thanks a lot, sir. And all the best for the future. You thank you to all the participants and management for joining on the call. This brings us to the end of today’s conference call. Thank you so much. Thank you everyone. The recording has stopped.