SKF India Q1 profit falls 48%, revenue drops 54% after demerger; EBITDA margin improves
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SKF India reported a 47.6% year-on-year decline in consolidated profit to ₹61.9 crore for the quarter ended June 2026, while revenue from operations fell 54.2% to ₹587.8 crore. However, the sharp decline largely reflects the company's demerger of its industrial business, making the year-on-year comparison not directly comparable.
Demerger reshapes the numbers
SKF India completed the demerger of its Industrial Undertaking effective October 1, 2025, with the business transferred to the newly created SKF India (Industrial) Limited. Shareholders of SKF India received shares in the resulting company in a 1:1 ratio, with the new entity subsequently listed on the BSE and NSE on December 5, 2025.
As a result, the industrial business that was part of SKF India's June 2025 consolidated numbers is no longer included in the current quarter. The discontinued Industrial Undertaking had contributed ₹820.6 crore in revenue and ₹71.9 crore in profit after tax in Q1 FY26, according to SKF India's standalone financial statements.
The demerged entity, SKF India (Industrial), separately reported ₹970.8 crore in Q1 FY27 revenue, up 18.3% year-on-year, while profit before tax stood at ₹86.9 crore.
Margins improve despite revenue decline
SKF India's consolidated EBITDA stood at around ₹88 crore, compared with ₹167 crore a year ago, while EBITDA margin improved to 14.97% from 13.04%, an expansion of 193 basis points.
Consolidated profit before tax stood at ₹83.9 crore, while depreciation and amortisation was ₹16.6 crore and finance costs were ₹0.04 crore. Other income stood at ₹12.4 crore.
The improvement in margin provides a more useful indicator of the performance of the business that remains with SKF India than the headline revenue decline, given the structural change in the reported base.
‘Resilient note’ to FY27
SKF India's management said the company had started FY27 on a resilient footing.
“We have started FY27 on a resilient note, reflecting the strength of our business portfolio, customer-centric approach and disciplined execution,” managing director Shailesh Kumar Sharma said. He added that the company remains focused on sustainable and profitable growth through “technology leadership, local manufacturing capabilities and strong customer partnerships.”
CFO Mayank Holani said the company remained focused on “strengthening operational efficiency and improving cost competitiveness while maintaining a disciplined approach to profitability.”
SKF India had incurred demerger-related expenses of ₹17.42 crore on a standalone basis and ₹33.44 crore on a consolidated basis during FY26, including IT costs, professional fees and estimated transfer premiums.
Separately, SKF India (Industrial), the resulting entity, has recognised ₹163.92 crore towards stamp duty and estimated transfer premium for transferring certain land parcels under the scheme. The two companies have agreed that the resulting company will bear the entire cost.