SKF India's margin recovered, but stayed well below the sector median
Revenue growth outpaced expense growth sequentially, though a sharply higher tax rate and lower other income pulled net profit down.
Filed 11 Aug 2026, 21:42 IST · after market close · SKF India (Industrial) Ltd (SKFINDUS)
Key takeaways
- Standalone operating margin recovered 0.52 percentage points sequentially to 9.09%, but remained 4.84 percentage points below the Industrials peer median.
- Revenue rose 2.65% sequentially while expenses grew 2.07%, helping operating profit increase 8.79% to Rs 88.21 cr.
- Net profit fell 47.95% sequentially as the tax rate moved from -32.23% to 28.76%, reversing the prior quarter's tax benefit.
Price around the results
Revenue momentum improved modestly in Q1FY27
Standalone revenue increased 2.65% sequentially, while operating profit grew 8.79% to Rs 88.21 cr. The faster rise in operating profit than revenue reflects the 2.07% increase in expenses, which lagged sales growth. Net profit did not follow operating profit because the prior quarter included a negative tax charge.
Margin recovered from Q4, but remains below the recent peak
Operating margin widened 0.52 percentage points from Q4FY26 as revenue growth exceeded expense growth. Even after that recovery, margin was below the 12.41% recorded in Q3FY26, making the latest quarter a partial reversal of the earlier decline. Depreciation also rose 19.95% sequentially, while interest increased 2700.00% from a low base.
SKF India remained below the Industrials peer median
Among 112 Industrials companies that had reported the same quarter, SKF India's 9.09% operating margin was 4.84 percentage points below the 13.93% sector median. The recent trend shows margin falling from 12.41% in Q3FY26 to 8.57% in Q4FY26 before the Q1 recovery. Profit quality was also affected by other income, which accounted for 10.99% of pre-tax profit.
Results were filed after market close
The standalone results were filed at 21:42 IST on 11 August 2026, after the market close. The stock's immediate market reaction was therefore not yet available.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹971 cr | ₹946 cr | +2.65% |
| Other income | ₹10 cr | ₹17 cr | -45.37% |
| Expenses | ₹883 cr | ₹865 cr | +2.07% |
| Operating profit | ₹88 cr | ₹81 cr | +8.79% |
| Operating margin (%) | 9.09% | 8.57% | — |
| Interest | ₹1 cr | ₹0 cr | +2700.00% |
| Depreciation | ₹10 cr | ₹9 cr | +19.95% |
| Profit before tax | ₹87 cr | ₹90 cr | -3.39% |
| Tax | ₹25 cr | ₹-29 cr | — |
| Net profit | ₹62 cr | ₹119 cr | -47.95% |
| EPS (₹) | ₹12.52 | ₹24.10 | -48.05% |
Operating margin of 9.09% compares with a Industrials sector median of 13.93% across 112 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above the Q1FY27 level of 9.09%.
- Whether the tax rate remains near 28.76% rather than returning to the Q4FY26 level of -32.23%.
- Whether other income remains around 10.99% of pre-tax profit.