SKF India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SKF India Ltd filed with BSE on 21 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SKF India reported revenue growth of 27% year-over-year to INR 5.9 billion for Q1 FY27, with EBITDA improving 7 bps year-over-year and 540 bps quarter-on-quarter. Management discussed segmental mix, capacity expansion in Haridwar, and new business wins including a wheel-end order from a passenger vehicle manufacturer starting Q4 CY2028. Executives also addressed gross margin movement, commodity inflation pass-through, and the outlook for exports, vehicle aftermarket, and EV-related business.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue growth: 27% (Q1 FY27 year-over-year)
p. 4
“We have a revenue growth of 27% year-over-year with INR 5.9 billion revenue, while it was minus 1% quarter-over-quarter.”
Shailesh Sharma, page 4 of the filed PDF · View the filing
EBITDA improvement: 7 bps year-over-year, 540 bps quarter-on-quarter (Q1 FY27)
p. 4
“EBITDA improved by 7 bps year-over-year, while it improved by 540 bps quarter-on-quarter.”
Shailesh Sharma, page 4 of the filed PDF · View the filing
Quarterly sales: INR 5.5 billion (Q1 FY27)
p. 4
“We achieved a quarterly sales of INR5.5 billion for Q1 FY27 with Y-o-Y growth of about 22% and marginal drop of 0.7% quarter-on-quarter.”
Mayank Holani, page 4 of the filed PDF · View the filing
OEM share of sales: 62% (Q1 FY27)
p. 4
“In terms of mix, OEMs accounted for about 62% of our sales for the quarter, distribution or vehicle aftermarket was about 20%, exports 8% and SKF Industrial about 10%.”
Mayank Holani, page 4 of the filed PDF · View the filing
Profit before tax: 14.3% (Q1 FY27)
p. 4
“Profit before tax for the quarter is 14.3%, which is around 60 bps higher year-on-year and about 650 bps higher quarter-on-quarter.”
Mayank Holani, page 4 of the filed PDF · View the filing
IIP growth: 4.8% (Q1 FY27)
p. 3
“IIP growth since last couple of quarters has been stable and was 4.8% for Q1 FY27.”
Shailesh Sharma, page 3 of the filed PDF · View the filing
Manufacturing PMI: 54.4 (June 2026)
p. 3
“Manufacturing PMI growth stood at 54.4 for June 26.”
Shailesh Sharma, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — close to 20%
stated firmly by Mayank Holani
p. 8
“we expect the revenue growth to be in the range close to 20%, right, much better than the 12% guidance we had given earlier, around 20% something.”
Mayank Holani, page 8 of the filed PDF · View the filing
Capex — INR170 - 180 crores · current financial year
stated firmly by Mayank Holani
p. 10
“it's largely this year, we are expecting to have a capex of about INR170 - 180 crores at least in the current financial year.”
Mayank Holani, page 10 of the filed PDF · View the filing
Total capex programme completion — INR500 crores · FY28, possibly spilling to FY29
stated conditionally by Mayank Holani
p. 11
“Largely, if you look at FY basis, largely it would be over by FY28. Maybe some part could spill down to FY29, but largely it will be over by FY28.”
Mayank Holani, page 11 of the filed PDF · View the filing
EBITDA margin — 17% · next 2 years
stated firmly by Shailesh Sharma
p. 8
“Yes, this is what we expect.”
Shailesh Sharma, page 8 of the filed PDF · View the filing
New wheel-end business start — Q4 CY2028
stated firmly by Shailesh Sharma
p. 5
“we got this business, which will start from Q4 CY 2028, but the nomination was important to get it now to prepare ourselves.”
Shailesh Sharma, page 5 of the filed PDF · View the filing
EV/electric mobility business ramp-up — 2028
stated conditionally by Girish Kumar
p. 8
“These are the businesses that will come on stream during 2028, more precisely towards the last quarter of the calendar year, 2028.”
Girish Kumar, page 8 of the filed PDF · View the filing
Sales to SKF Industrial — next few years
stated as an aspiration by Mayank Holani
p. 10
“This is something which over the next few years is expected to come down.”
Mayank Holani, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the move to mix and inventory revaluation under FIFO, and said commodity inflation pass-through is a work in progress.
Answered by Mayank Holani
Asked by Mumuksh Mandlesha: What drove the sequential gross margin movement and commodity inflation/price hikes in Q1 and Q2 outlook?
p. 6
“largely, it was the mix as well as the inventory revaluation impact, which -- because we follow the FIFO method of inventory, which has an impact.”
Mayank Holani, page 6 of the filed PDF · View the filing
Management said growth is expected to moderate to around 20%, still above the earlier 12% guidance.
Answered by Mayank Holani
Asked by Varun Pinto: Is the 27% revenue growth expected to moderate given prior 12% guidance?
p. 8
“See, 27% is obviously very good growth, but we expect the revenue growth to be in the range close to 20%, right, much better than the 12% guidance we had given earlier, around 20% something.”
Mayank Holani, page 8 of the filed PDF · View the filing
Management said they are increasing capacity through efficiency gains and new Haridwar capacity.
Answered by Shailesh Sharma
Asked by Varun Pinto: Does the company have enough capacity to sustain 20% growth given ~93% loading?
p. 8
“We have already unlocked about 5 million pieces this year by doing some technological upgradation of our assets, which are in ramping up stage.”
Shailesh Sharma, page 8 of the filed PDF · View the filing
Management confirmed a markup applies on related-party transactions and said margins should improve once in-house capacity builds up.
Answered by Mayank Holani
Asked by Krupashankar NJ: Could transfer pricing on goods sourced from SKF Industrial be pressuring margins?
p. 9
“there is a certain markup which has to be applied. So once the capacity -- our capacity builds up and we have production, that will be positive for the margin.”
Mayank Holani, page 9 of the filed PDF · View the filing
Management described a plateau/slight decline in revenue, a temporary discount given, and a strategy to recover volume.
Answered by Shailesh Sharma
Asked by Krupashankar NJ: What is happening in the vehicle aftermarket/distribution business and on pricing?
p. 9
“We needed to give some discount in last 2 months, but which will not be continued now.”
Shailesh Sharma, page 9 of the filed PDF · View the filing
Management said the business is still in development phase and not material yet, declining to give specific numbers.
Answered by Girish Kumar
Asked by Rajit Aggarwal: Can management share revenue and market share from EV non-wheel bearings?
p. 9
“As we mentioned, these are the businesses that are in the development phase. The full stream production ramp-up is expected across vehicle segment beginning '27 mid or so, and it will see a full, let's say, visibility of the business numbers sometime during 2028.”
Girish Kumar, page 9 of the filed PDF · View the filing
Management explained it involves reallocating products across factories and reviewing unprofitable sales mix, with no major FY27 impact.
Answered by Shailesh Sharma
Asked by Rajit Aggarwal: What does portfolio rationalization mean and will it affect FY27?
p. 10
“there are certain businesses which are kind of not so profitable or loss makers, we would like to do something about it.”
Shailesh Sharma, page 10 of the filed PDF · View the filing
Management said this is not a growth priority and volumes are expected to decline as capacity is redirected to automotive customers.
Answered by Mayank Holani
Asked by Raghunandhan NL: How is the trajectory of sales to SKF Industrial expected to progress?
p. 10
“it's not a priority for growth. This is something which over the next few years is expected to come down.”
Mayank Holani, page 10 of the filed PDF · View the filing
Risks flagged
Vehicle aftermarket business facing distinct challenges with plateauing or declining revenue
p. 9
“So vehicle aftermarket business has a certain different set of challenges. So far, it's kind of plateau or a small decline in our revenue.”
Shailesh Sharma, page 9 of the filed PDF · View the filing
Lag between commodity inflation and price realization from customers
p. 6
“If there is an inflation, the discussions with the customer takes some time and also depending on individual customer contracts, there could be a lag of 1 to 2 quarters.”
Mayank Holani, page 6 of the filed PDF · View the filing
Iron and steel production decline during the quarter
p. 3
“Iron and steel production declined during the quarter.”
Shailesh Sharma, page 3 of the filed PDF · View the filing
Passenger and commercial vehicle production declined marginally
p. 3
“However, passenger and commercial vehicle declined marginally.”
Shailesh Sharma, page 3 of the filed PDF · View the filing
Vehicle aftermarket market has fake products and heavy competition compared to OE market
p. 11
“You have a lot of competitors, you have the fake products also, and it works in a completely different way.”
Mayank Holani, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.