SKF India (SKFINDUS) Q2 FY27 Profit Jumps 67% as Industrial Demand Fuels Growth
The bearings maker posted a 67% sequential profit surge in Q2 FY27, driven by broad-based industrial demand and a sharp margin recovery from the previous quarter.
SKF India's September quarter profit soared 67% sequentially to ₹103 crore, with revenue up 7%. The jump was powered by strong demand across heavy industries, wind, and exports, alongside a significant margin expansion.
For SKF India, the first full year as a standalone industrial business is testing its ability to turn robust demand into sustained profit growth. The September quarter shows the promise, with profit soaring 67% from the June quarter on disciplined execution across a broad customer base.
The numbers reveal a sharp recovery. Revenue climbed 7.4% sequentially to ₹1,042.9 crore, while net profit leapt to ₹103.5 crore. The net profit margin expanded to 9.9%, a 350 basis-point improvement from the previous quarter's 6.4%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 1,042.86 | 970.77 |
| Profit (₹ Cr) | 103.48 | 61.92 |
| Net Profit Margin (%) | 9.9 | 6.4 |
Why Profit Outpaced Revenue
The profit surge was not just about higher sales. Managing Director Sujeeth Pai, quoted by ETManufacturing, credited demand across heavy industries, wind, aftermarket and exports, along with disciplined execution. A significant boost came from other income, which jumped to ₹45.1 crore from ₹9.6 crore in Q1.
This one-time lift flattered the bottom line, but operating discipline also improved. The pre-tax profit margin expanded to 12.9% from 9.0% in Q1, as per the company's financial highlights.
The Outlook and the Catch
Management confidence is high. CFO Mayank Holani told CNBC TV18 the company has raised its full-year revenue growth guidance to around 20%, up from 12%. It retained its operating margin target of 17% for FY27.
However, reaching that margin goal requires navigating persistent cost pressures. Holani noted inflationary pressure from steel and supplier costs, with price revisions to customers still being implemented. The stock, down over 25% from its 52-week high per MarketsMojo, reflects investor caution on this margin sustainability.
Building for the Future
To meet demand and reduce reliance on traded goods, the board has approved a ₹140 crore capacity expansion. Autocar Professional reported this will add production lines at Haridwar and Pune plants through 2027.
Key Points
- Net profit surged 67% quarter-on-quarter to ₹103.5 crore, aided by higher other income and improved operational execution.
- Management raised FY27 revenue growth guidance to 20%, citing strong demand across industrial and automotive original equipment segments.
- Significant capacity expansion plans worth ₹140 crore are underway to support future growth and reduce dependency on traded volumes.
- Investor sentiment remains cautious, with the stock trading significantly below its yearly high amid concerns over sustained margin improvement.
Hexa Perspective
The quarter demonstrates SKF India's solid positioning within India's industrial upcycle, with revenue growth accelerating. The raised guidance underscores management's confidence in demand visibility.
The critical watchpoint is the core operating margin, which must climb from the reported 9.9% to meet the full-year target. Success hinges on fully implementing price increases to offset stubborn input cost inflation. The planned capex is a necessary step to capture growth, but its benefits will materialise over the coming year, leaving near-term profitability reliant on pricing power and mix.
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