SKF India's sales rose, but faster cost growth cut operating margin
A tax credit and other income supported profit, while the stock rose 7.91% on the results day.
Filed 13 May 2026, 00:39 IST · SKF India (Industrial) Ltd (SKFINDUS)
Key takeaways
- Revenue grew +9.85% sequentially, but expenses grew faster at +14.66%, cutting operating margin by 3.84 percentage points.
- The -32.23% tax rate and other income equal to 19.43% of pre-tax profit materially supported the quarter's net profit.
- SKF India's operating margin of 8.57% was 7.09 percentage points below the 15.66% median for 71 reported Industrials peers.
Price around the results
Sales momentum did not translate into operating profit
Standalone revenue rose +9.85% sequentially, but operating profit fell -24.12% as expenses increased +14.66%. The resulting operating margin decline of 3.84 percentage points shows that incremental revenue came with a higher cost burden. This was a sharp reversal from the prior quarter's operating margin of 12.41%.
Tax credit and other income lifted reported profit
The tax rate moved from 25.39% to -32.23%, so the tax credit materially boosted reported net profit. Other income contributed 19.43% of pre-tax profit, making the earnings mix less dependent on operations. Interest remained immaterial at Rs 0.02, while depreciation increased +9.17% sequentially.
Margin remained below the Industrials peer median
SKF India's 8.57% operating margin was 7.09 percentage points below the 15.66% median among 71 Industrials companies that had reported the same quarter. It ranked 10th from the bottom on this measure. With only Q3FY26 available in the quarterly trend, the sequential margin decline is clear, but a longer multi-quarter direction is not established here.
Pune capacity and tractor projects extend the business pipeline
Management said SKF increased Pune TRB capacity for 110–165 mm outer diameters from 600T to 880T pieces. The company told investors it had installed high-speed machines and changed layouts to improve productivity with less manning. Management also said it won four tractor projects worth Rs 325 million and developed customer-specific TRB and CRB offerings from the platform-design stage.
Shares gained 7.91% on the results day
The stock rose +7.91% on the filing date, with volume at 2.65x the reference level. The move was +7.77% relative to the market measure at the same point and stood at +0.10% relative after five sessions. No past-results reaction history is provided for judging whether this response was usual for the stock.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹946 cr | ₹861 cr | +9.85% |
| Other income | ₹17 cr | ₹-166 cr | — |
| Expenses | ₹865 cr | ₹754 cr | +14.66% |
| Operating profit | ₹81 cr | ₹107 cr | -24.12% |
| Operating margin (%) | 8.57% | 12.41% | — |
| Interest | ₹0 cr | ₹0 cr | +100.00% |
| Depreciation | ₹9 cr | ₹8 cr | +9.17% |
| Profit before tax | ₹90 cr | ₹-67 cr | — |
| Tax | ₹-29 cr | ₹-17 cr | -70.09% |
| Net profit | ₹119 cr | ₹-50 cr | — |
| EPS (₹) | ₹24.10 | ₹-10.10 | — |
Operating margin of 8.57% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +7.91% | +7.77% |
| Next session | +4.63% | — |
| 5 sessions | +1.30% | +0.10% |
| 15 sessions | +18.38% | — |
| 30 sessions | +42.58% | — |
Volume on the results session was 2.65× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- SKF added TRB capacity in Pune, increasing 110–165 mm OD capacity from 600T to 880T pieces.
New orders
- SKF won four tractor projects worth ₹325 million.
New initiatives
- SKF adopted cutting-edge technology and process optimization, including high-speed machines and layout changes.
- SKF developed customer-specific tractor bearing offerings, including TRBs and CRBs, from the platform design stage.
What to watch
- Whether operating margin recovers from 8.57% after the 3.84-percentage-point sequential decline.
- Whether expense growth moderates from +14.66% against revenue growth of +9.85%.
- Whether reported profit remains supported by the -32.23% tax rate and other income's 19.43% share of pre-tax profit.