Costs erased SKF India's quarterly operating margin
Revenue rose 1.36% QoQ, but expenses grew 7.73%, while other income supplied 41.75% of pre-tax profit.
Filed 03 Nov 2026, 21:00 IST · after market close · SKF India Ltd (SKFINDIA)
Key takeaways
- Consolidated operating margin fell 5.34 percentage points QoQ as expenses grew 7.73% against 1.36% revenue growth.
- Net profit declined 16.33% QoQ even as other income rose 134.46%, contributing 41.75% of pre-tax profit.
- SKF India's 9.63% operating margin was 1.40 percentage points below the 11.03% Industrials median across 108 reported peers.
Price around the results
Q2FY27: revenue held, operating profit fell
SKF India's consolidated revenue increased 1.36% QoQ, but operating profit dropped 34.80% as costs outpaced sales. Net profit fell 16.33% to Rs 51.81 cr, despite the sharp increase in other income. The result was filed after market close, so the stock's immediate response is not covered here.
Expense growth drove the margin reset
Expenses rose 7.73% QoQ, compared with 1.36% revenue growth, cutting operating margin by 5.34 percentage points to 9.63%. Other income increased 134.46% and accounted for 41.75% of pre-tax profit, making reported profit less dependent on operations this quarter. The tax rate fell only 0.27 percentage points, so the lower tax burden did little to offset the operating decline.
Margin moved below the Industrials peer median
SKF India's 9.63% operating margin was 1.40 percentage points below the 11.03% median for 108 Industrials companies that had reported the quarter. The company ranked 37th from the bottom on this measure. Its margin also fell from 14.97% in Q1FY27 to 9.63% in Q2FY27, putting the near-term direction lower.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹596 cr | ₹588 cr | +1.36% |
| Other income | ₹29 cr | ₹12 cr | +134.46% |
| Expenses | ₹538 cr | ₹500 cr | +7.73% |
| Operating profit | ₹57 cr | ₹88 cr | -34.80% |
| Operating margin (%) | 9.63% | 14.97% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹17 cr | ₹17 cr | +0.36% |
| Profit before tax | ₹70 cr | ₹84 cr | -16.63% |
| Tax | ₹18 cr | ₹22 cr | -17.50% |
| Net profit | ₹52 cr | ₹62 cr | -16.33% |
| EPS (₹) | ₹10.50 | ₹12.50 | -16.00% |
Operating margin of 9.63% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.63% in the next quarter.
- Whether expense growth moderates from 7.73% QoQ.
- Whether other income's contribution to pre-tax profit falls below 41.75%.