SKF India (Industrial) Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SKF India (Industrial) Ltd filed with BSE on 19 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 Industrial reported revenue from operations of INR9,708 million for Q1 FY27, up 18.3% year-on-year and 2.6% quarter-on-quarter, with PBT margin at around 9.0%-9.5% impacted by forex losses and one-time demerger-related IT expenses. Management said cash conversion was 63.0% for the quarter and detailed order wins including a INR140 crore gearbox order and a INR35 crore tractor OEM contract. The company also discussed its planned INR900-950 crore investment in a new Pune manufacturing plant expected to begin production from 2028, and Sujeeth Pai will take over as Managing Director effective September 1st.
Numbers mentioned
Revenue from operations: INR9,708 million (Q1 FY27)
p. 5
“So our revenue from operations was INR9,708 million for the quarter.”
Mukund Vasudevan, page 5 of the filed PDF · View the filing
Revenue growth year-on-year: 18.3% (Q1 FY27 vs Q1 FY26)
p. 5
“If you compare year-on-year, and this is where we, some assumptions for the year, it was a 18.3% growth, super exciting.”
Mukund Vasudevan, page 5 of the filed PDF · View the filing
Revenue growth quarter-on-quarter: 2.6% (Q1 FY27 vs Q4 FY26)
p. 5
“If we do, do a quarter-on-quarter comparison, which is from the January to March quarter to now, that is a 2.6% growth, solid.”
Mukund Vasudevan, page 5 of the filed PDF · View the filing
PBT: INR869 million (Q1 FY27)
p. 5
“Our PBT INR869 million, 9.5% to 9.0% margin primarily, due to forex related losses and one-time expenses related to the demerger, primarily around IT.”
Mukund Vasudevan, page 5 of the filed PDF · View the filing
Cash conversion: 63.0% (Q1 FY27)
p. 5
“Our cash flow was still strong with a 63.0% cash conversion in this quarter.”
Mukund Vasudevan, page 5 of the filed PDF · View the filing
Forex loss impact: INR147 million (Q1 FY27 quarter-over-quarter)
p. 8
“We had a forex loss of around if you look at quarter over quarter because of the rupee depreciation, which got impacted predominantly on account of the Middle East war, we had significant forex loss on the products that we imported, right, from predominantly from Europe and other markets. So that was to the tune of around INR147 million if you compare it quarter-over-quarter.”
Ashish Saraf, page 8 of the filed PDF · View the filing
Demerger-related IT cost impact: INR150 million (Q1 FY27)
p. 8
“So this quarter we had an additional adverse impact of almost INR150 million impacting our P&L, predominantly coming on account of the IT cost, IT infrastructure cost that we are incurring on account of demerger.”
Ashish Saraf, page 8 of the filed PDF · View the filing
Order win with gearbox manufacturer: INR140 crores
p. 6
“we just won a significant order with a gearbox manufacturer, INR140 crores order, which will help us significantly in our sales in the next few quarters, continuing to next year.”
Mukund Vasudevan, page 6 of the filed PDF · View the filing
Order win with tractor OEM: INR 35 crores
p. 6
“Similarly, in agricultural, we just won a INR 35 crores contract with a leading tractor OEM thanks to our innovative customized product.”
Mukund Vasudevan, page 6 of the filed PDF · View the filing
Distribution mix of revenue: 34% (Q1 FY27)
p. 9
“our distribution mix is around 34% and our OE mix is around 54%, right?”
Ashish Saraf, page 9 of the filed PDF · View the filing
OE mix of revenue: 54% (Q1 FY27)
p. 9
“our distribution mix is around 34% and our OE mix is around 54%, right?”
Ashish Saraf, page 9 of the filed PDF · View the filing
Solutions business share of India business: 6% to 7%
p. 10
“It is less than 10%, now it's around 6% to 7% of India business.”
Mukund Vasudevan, page 10 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.
PBT margin — 14% to 16% · near term, through 2028
stated conditionally by Mukund Vasudevan
p. 8
“In the near term, as we -- investments, make investments, we think that there will be dip, right?”
Mukund Vasudevan, page 8 of the filed PDF · View the filing
PBT margin — 17, 18 or even 19%
stated as an aspiration by Mukund Vasudevan
p. 8
“We are -- our aspiration or ambition is to try and get closer to 17, 18 or even 19.”
Mukund Vasudevan, page 8 of the filed PDF · View the filing
New Pune plant production start — 2028
stated firmly by Mukund Vasudevan
p. 6
“That is progressing as per plan and we expect to start producing there from 2028.”
Mukund Vasudevan, page 6 of the filed PDF · View the filing
Capex for new Pune plant — INR900 crores to INR950 crores
stated firmly by Mukund Vasudevan
p. 6
“The sharper capital allocation enables making the investment plans we are making in terms of INR900 crores to INR950 crores we are planning to invest to make the new Pune plant, state-of-the-art Pune plant.”
Mukund Vasudevan, page 6 of the filed PDF · View the filing
Doubling of business — double the business · five years
stated as an aspiration by Mukund Vasudevan
p. 10
“Second part of doubling business, right, I'm not going to put a timeline on it, that is an aspiration.”
Mukund Vasudevan, page 10 of the filed PDF · View the filing
IT demerger cost taper — next two quarters
stated firmly by Ashish Saraf
p. 8
“This expense is expected to continue for the next two quarters till the AB SKF separates globally with the automotive company of SKF and post that this cost would stop.”
Ashish Saraf, page 8 of the filed PDF · View the filing
Additional TRB channel addition — one additional TRB channel · early 2027
stated firmly by Ashish Saraf
p. 12
“we are also -- again, even though we are constrained by capacity, we are still going to add one additional channel by early 2027, one additional TRB channel by 2027.”
Ashish Saraf, page 12 of the filed PDF · View the filing
Payback period on new investments — five to seven years
stated firmly by Ashish Saraf
p. 14
“So putting the entire investment together, we are looking at a payback between five to seven years.”
Ashish Saraf, page 14 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 said combined FX and one-time demerger costs were about 3% of margin, and the underlying margin was closer to 12%, with 14-16% as a conservative near-term guide and aspiration to reach 17-19%.
Answered by Ashish Saraf
Asked by Viraj Kacharia: Asked about margin guidance moderation compared to earlier 16-19% guidance and to quantify FX and demerger expenses.
p. 8
“So if you kind of add that back, we pretty much come to 12%.”
Ashish Saraf, page 8 of the filed PDF · View the filing
Management said OE margins are relatively high single-digit while distribution margins are high double-digit.
Answered by Ashish Saraf
Asked by Varun Jain: Asked about the difference in margins between distribution, exports and OEM channels.
p. 10
“So if you talk about OE margins, typically it would be relatively high single-digit margins, whereas distribution would be high double-digit.”
Ashish Saraf, page 10 of the filed PDF · View the filing
Management described the solutions business as currently 6-7% of India business and said the doubling aspiration has no committed timeline but ideally around five years.
Answered by Mukund Vasudevan
Asked by Gokul Maheshwari: Asked to quantify the solutions business and provide a timeline for the stated aspiration to double the business.
p. 10
“I would say ideally in five years we would like to get, right?”
Mukund Vasudevan, page 10 of the filed PDF · View the filing
Management said the IT cost would taper down by end of the year, and margins were expected to improve incrementally through manufacturing efficiency and eventually the new Pune plant by 2028.
Answered by Ashish Saraf
Asked by Ravi Purohit: Asked how long the one-off IT and forex costs would continue and whether 12% margin would be achieved immediately after they end.
p. 11
“So we should see probably significant cost in this quarter and then it should start tapering down by end of this year and then probably from Q1 or Q4 next year, we should not see these costs, right?”
Ashish Saraf, page 11 of the filed PDF · View the filing
Management clarified the TRB line belongs to SKF Industrial, not the SKF Automotive line.
Answered by Mukund Vasudevan
Asked by Ravi Purohit: Asked whether the new tapered roller bearing line is operated by SKF India Auto or SKF Industrial.
p. 11
“Yes, so the factory operations, I think the question was on the TRB line, that is in SKF Industrial, it's not in the SKF Automotive line.”
Mukund Vasudevan, page 11 of the filed PDF · View the filing
Management said they continuously evaluate this but are not actively pursuing it while the demerger stabilizes.
Answered by Mukund Vasudevan
Asked by Ravi Purohit: Asked whether SKF India might merge listed and unlisted entities as seen in precedents like Bosch and 3M.
p. 12
“So at this moment, as I've mentioned before, we're not looking at it actively, mainly because we want this demerger stabilised, there's some stabilization required within India on this demerger.”
Mukund Vasudevan, page 12 of the filed PDF · View the filing
Sujeeth Pai described growth drivers across general machinery, railways, and renewable energy/wind, while Ashish Saraf said the investment payback period is five to seven years.
Answered by Sujeeth Pai
Asked by Divij Punjabi: Asked about the key growth drivers for doubling the business and expected asset turns from the capex plan.
p. 13
“The second big one, of course, is railways. And railways again we continue to invest.”
Sujeeth Pai, page 13 of the filed PDF · View the filing
Risks flagged
Forex losses due to rupee depreciation on imported products
p. 8
“we had significant forex loss on the products that we imported, right, from predominantly from Europe and other markets.”
Ashish Saraf, page 8 of the filed PDF · View the filing
One-time demerger-related IT infrastructure costs pressuring margins
p. 8
“we continue to incur expenses on IT, as we are separating the IT infrastructure of both automotive and industrial company.”
Ashish Saraf, page 8 of the filed PDF · View the filing
Weak monsoon potentially worsening inflation
p. 4
“We expect that to continue to be in the same range or maybe get worse -- a little worse as the monsoons have been a bit weak.”
Mukund Vasudevan, page 4 of the filed PDF · View the filing
Space constraints limiting near-term capacity expansion
p. 11
“Yes, unfortunately the challenge, the biggest challenge is actually space.”
Mukund Vasudevan, page 11 of the filed PDF · View the filing
Margin pressure expected to continue over the next couple of years due to investments
p. 8
“But for the next couple of years at least, because of the investments we are making, there will continue margin pressure as localization increases, so we make more products in India or in the region for to be more competitive and our margins improve.”
Mukund Vasudevan, page 8 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.