SKFINDIA Q1 FY27 earnings call.
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Revenue
₹588 Cr
verified against source
Revenue YoY
27%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
SKF India delivered exceptional Q1 FY27 results with 27% YoY revenue growth to INR 515.9 crore, driven by 22% volume growth. EBITDA margin expanded 7 basis points YoY while PBT reached 14.3% (up 60 bps). OEM segment contributed 62% of sales with two-wheelers (54%) and PV (31%) leading. Management raised full-year revenue growth guidance from 12% to approximately 20%, supported by capacity additions and new customer wins. A landmark wheel-bearing business nomination secured from a major PV OEM, production slated for Q4 2028. Capex of INR 170-180 crore planned for FY27 as part of the INR 500 crore multi-year investment, with new capacity coming online Q4 FY27. EV-related products remain in development phase with full visibility expected by 2028. Key risks include commodity inflation lag in margin recovery, aftermarket volume softness, and grey market competition.
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Guidance to track
- Management revised guidance from 12% to approximately 20% YoY revenue growth for FY27, implying moderation from Q1's exceptional 27% performance.
- Current ~17% margin is the normalized range expected for the next two years, though quarterly fluctuations possible due to mix and inventory valuation impacts.
- Capex of INR 170-180 crore expected in current financial year, part of total INR 500 crore multi-year investment program largely completing by FY28.
- Multiple electric mobility development platforms will begin production during late 2028 calendar year, with full revenue visibility expected by 2028.
Risks flagged
- Vehicle aftermarket saw slight volume reduction with management acknowledging competition from fake products and grey market. Recovery strategy planned over next five months but success uncertain.
- EV-related products are in development phase with revenue visibility only by 2028. Multiple development platforms need to transition successfully to production, creating execution risk.
- Management acknowledged commodity inflation discussions with OEMs are work-in-progress with 1-2 quarter lag typical. Gross margin may face pressure if pass-through timing mismatches with cost inflation.
- SKF India supplies to and sources from SKF Industrial (demerged entity). Related party transfer pricing creates margin complexity until own manufacturing capacity scales up, potentially compressing near-term profitability.
Key quotes
- We expect the revenue growth to be in the range of approach to 20%, is not much better than the 12% guidance we have given earlier but around 20 something like that.
- When you see last year's growth that's not comparable because industrial entity business was not carved out last year right. So it came into existence in December 25th quarter only.
- Portfolio rationalization... there are certain businesses which are kind of not so profitable or loss makers. We would like to do something about it.
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