SKF India's margin recovers, but other income lifts profit
Revenue grew faster than expenses QoQ, while lower tax and higher other income amplified the rise in net profit.
Filed 04 Nov 2026, 23:01 IST · after market close · SKF India (Industrial) Ltd (SKFINDUS)
Key takeaways
- Standalone revenue rose 7.43% QoQ while expenses rose 6.77%, lifting operating margin by 0.55 percentage points.
- Other income contributed 33.55% of pre-tax profit, while a 5.77 percentage-point tax-rate decline supported the 67.12% QoQ net-profit rise.
- At 9.64%, operating margin was 2.61 percentage points below the 12.25% Industrials peer median across 146 reporters.
Price around the results
Q2FY27 revenue growth outpaced cost growth
Standalone revenue increased 7.43% QoQ, ahead of the 6.77% rise in expenses, so operating margin widened by 0.55 percentage points to 9.64%. Operating profit consequently grew 13.94%, faster than revenue. This marks an improvement from the 9.09% margin in Q1FY27.
Other income and tax changes lifted reported profit
Other income accounted for 33.55% of pre-tax profit, making it a material contributor to the quarter's earnings quality. The tax rate fell by 5.77 percentage points to 22.99%, which helped net profit rise 67.12% QoQ despite interest expense increasing 10.71%. The 54.59% increase in pre-tax profit was therefore amplified at the net-profit level.
Margin has recovered from Q4FY26 but remains below peers
Operating margin improved from 8.57% in Q4FY26 to 9.64% in Q2FY27, but remains below the 12.41% recorded in Q3FY26. SKF India's margin was 2.61 percentage points below the 12.25% median for 146 Industrials companies that have reported the quarter. The sequence shows a two-quarter recovery from the Q4FY26 trough, rather than a return to the earlier peak.
Results were filed after market close
The results were filed after market close, so there is no immediate market reaction to report. Across the last three result reactions, the stock rose once and fell twice, with a median absolute move of 5.16%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,043 cr | ₹971 cr | +7.43% |
| Other income | ₹45 cr | ₹10 cr | +372.04% |
| Expenses | ₹942 cr | ₹883 cr | +6.77% |
| Operating profit | ₹101 cr | ₹88 cr | +13.94% |
| Operating margin (%) | 9.64% | 9.09% | — |
| Interest | ₹1 cr | ₹1 cr | +10.71% |
| Depreciation | ₹11 cr | ₹10 cr | +3.11% |
| Profit before tax | ₹134 cr | ₹87 cr | +54.59% |
| Tax | ₹31 cr | ₹25 cr | +23.56% |
| Net profit | ₹103 cr | ₹62 cr | +67.12% |
| EPS (₹) | ₹20.80 | ₹12.52 | +66.13% |
Operating margin of 9.64% compares with a Industrials sector median of 12.25% across 146 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.64% in the next quarter.
- Whether other income's contribution falls from 33.55% of pre-tax profit.
- Whether the 2.61 percentage-point gap to the 12.25% peer median narrows.