SKF India (Industrial) Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,042.90 Cr (+28.30% YoY) and PAT growth of +34.50% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,042.90 Cr (+28.30% YoY) |
| PAT (Q2) | Rs. 103.50 Cr (+34.50% YoY) |
| EBITDA margin | 9.64% (-365 bps YoY) |
| EPS (Q2) | Rs. 20.80 (+33.30% YoY) |
Revenue grew 28.3% YoY, exceeding management's 8% interim growth target, while PBT margin recovered 393 bps QoQ to 12.88%, near the 13% near-term target. The recovery is partly flattered by a spike in other income (Rs.45.1 crore, with Rs.31.5 crore of H1 other income unexplained), and H1 CFO/PAT of 0.26x with negative free cash flow of Rs.118.9 crore flags earnings-quality and working-capital pressure. Reaching the 14% PBT-margin band floor within FY27 requires a 17.0% H2 margin, making it a stretch target.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely ahead to in-line" (double-digit capital-goods IIP, wind +~30% QoQ, tractors +16.9%) | +28.3% YoY, +7.4% QoQ — ahead | Played out |
| Margins | "likely compressing at the gross line, with the recovery hinging on the one-off taper" | PBT margin +393 bps QoQ to 12.88%; +42 bps YoY reported but −155 bps YoY vs the pre-exceptional base of 14.43%; one-off taper delivered (exceptionals nil) | Partially |
| Watch: one-off quantification (Q2 forex + demerger IT vs Q1's Rs.14.7 + ~Rs.15.0 cr) | — | Not disclosed in the filing; other income spiked with Rs.31.5 cr H1 residual unexplained — open for the call | Not observable |
| Watch: demerger cost cessation | — | Not quantified | Not observable |
| Watch: distribution channel recovery | — | No segment disclosure | Not observable |
| Watch: new MD's first call / ACES continuity | — | No call content in filing | Not observable |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| PBT margin 14.0–16.0% (open-ended) | guided on the Q1 FY27 earnings call (Aug 2026) | 12.88% — up from 9.0% in Q1 | Not yet met |
| Margin recovery ~9% → ~12% as one-offs taper | Q1 FY27 call, Aug 2026 | 12.88% | Met |
| Near-term margin return to 13% | FY26/Q1 FY27 calls | 12.88% — ~12 bps short | On Track |
| One-offs to "significantly reduce this quarter" | Q1 FY27 call, Aug 2026 | Exceptional items nil; demerger IT cost inside other expenses not quantified | Partially verifiable |
| Demerger costs cease within "next two quarters" from Aug 2026 | Q1 FY27 call, Aug 2026 | Not quantified in the filing | Too Early |
| Interim growth 8% | Q4 FY26 / Q1 FY27 calls | +28.3% YoY — exceeded | Met |
| EBITDA margin 15% until FY2030 (definition undisclosed) | management commentary | 9.64% ex-OI / 13.96% incl-OI | Below on both constructions; definition open |
| Capex Rs.800–950 cr through 2030 | management guidance | H1 FY27 capex Rs.162.0 cr — pro-rated | On Track |
| "Healthy PBT despite currency and demerger headwinds" | Q1 FY27 press release framing | Q2 PBT +32.6% YoY reported (+14.5% pre-exceptional) | Confirmed |
| Growth strong across wind, general machinery, agriculture | Q1 FY27 call | Single-segment filing — no split disclosed | Not observable |
| Metric | 1QFY26 | 2QFY26 | 3QFY26 | 4QFY26 | 1QFY27 | 2QFY27 |
|---|---|---|---|---|---|---|
| PBT margin % | 11.8 | 12.5 | (7.8) | 9.5 | 8.95 | 12.88 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.