Quarterly Results ArchiveLast updated 4 November 20263 min read

SNL Bearings Q2 FY27 Profit Falls 11% Sequentially Despite Higher Sales

SNL Bearings' Q2 profit declined from the previous quarter as rising material costs and lower other income squeezed margins, even as revenue grew.

By Anant Kacholia, HexaWealth Research · Created 4 November 2026

SNL Bearings reported an 8.7% yearly rise in Q2 revenue but a 10.7% sequential drop in profit. Higher raw material costs and a sharp fall in other income pressured margins, highlighting cost challenges in a growing automotive market.

For a precision components maker tied to India's auto assembly lines, a quarter of rising sales usually brings stronger profits. SNL Bearings' September quarter delivered the first half of that equation, but rising costs took a clear bite out of the bottom line.

Revenue grew 5.2% from the June quarter to ₹16.05 crore, while net profit fell 10.7% to ₹3.09 crore. The net profit margin compressed by 340 basis points sequentially to 19.3%. Over the past year, sales have trended higher, but profitability has been more volatile.

Revenue & profit

Revenue (₹ Cr)

Profit (₹ Cr)

Net Profit Margin (%)

Metric	CurrentQ2 FY27 (Sep 2026)	PreviousQ1 FY27 (Jun 2026)
Revenue (₹ Cr)	16.05	15.25
Profit (₹ Cr)	3.09	3.46
Net Profit Margin (%)	19.3	22.7

Where the profit gain was lost

Two factors explain the profit drop. First, a sharp 57% quarter-on-quarter decline in other income, as reported by scanx.trade, pulled down total income. More critically, the cost of materials consumed jumped significantly year-on-year, according to the same source, pressuring gross margins as sales grew.

This suggests input cost inflation is outpacing the company's ability to pass it on fully. With about 90% of its demand coming from automotive original equipment manufacturers, SNL's fortunes are tightly linked to vehicle production cycles and their pricing power within that chain.

A sector tailwind with a cost headwind

The broader needle roller bearing sector is seeing strong demand. SKF India recently raised its full-year revenue growth guidance to around 20%, as noted by CNBC-TV18, citing strength across all automotive segments. This provides a supportive backdrop for SNL's top line.

However, industry commentary also points to inflationary pressure from steel prices and vendor costs. For a smaller, specialized manufacturer like SNL, this margin squeeze can be more pronounced in any single quarter, especially when non-operational income normalizes.

The cash and capacity picture

Financially, the company remains debt-free, a consistent strength. It also declared a ₹6 per share interim dividend alongside the results. However, scanx.trade noted a decrease in cash generated from operations for the first half, coinciding with a build-up in inventory.

On capacity, the board had earlier approved an approximately ₹8 crore capital expenditure plan, as per a report by news.tulsian.ai. This modest expansion is aimed at supporting volume growth and is funded from internal accruals, aligning with its conservative balance sheet.

Key Points

Sequential profit declined 10.7% despite a 5.2% rise in revenue, as net margin fell 340 basis points.
The profit squeeze was driven by higher raw material costs and a steep quarterly drop in other income.
The company operates debt-free and paid an interim dividend, but operating cash flow dipped amid higher inventory.
Sector demand from the automotive industry remains robust, but cost pressures are a near-term challenge.

Hexa Perspective

The quarter frames SNL Bearings' persistent tension: riding a sector tailwind while navigating a cost headwind. Revenue growth confirms its position in the automotive supply chain is intact. Yet, the margin compression shows its pricing power is limited in the current cost environment.

The path ahead hinges on whether raw material costs stabilize and if the approved capacity expansion can drive operating leverage. For now, the story is one of respectable top-line growth that hasn't yet translated into bottom-line momentum, keeping the investment case in a holding pattern.

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Frequently asked questions

What were SNL Bearings' Q2 FY27 results?

For Q2 FY27 (July-September 2026), SNL Bearings reported revenue of ₹16.05 crore, up 8.7% from a year ago. Net profit was ₹3.09 crore, a 5.5% yearly increase but a 10.7% decline from the previous quarter ended June 2026.

Why did SNL Bearings' Q2 profit fall 10.7% sequentially despite a 5.2% rise in revenue?

SNL Bearings' Q2 profit fell quarter-on-quarter due to margin pressure. According to scanx.trade, the cost of materials consumed rose significantly year-on-year, hurting gross margins. Additionally, other income dropped sharply by 57% from the previous quarter.

What caused the significant QoQ drop in other income for SNL Bearings in Q2 FY27?

SNL Bearings' other income fell 57% quarter-on-quarter in Q2 FY27, dropping from ₹1.24 crore in Q1 to ₹0.53 crore. This sharp decline, reported by scanx.trade, weighed on total income and contributed to the sequential profit drop.

Why did SNL Bearings' net profit margin contract 340 basis points QoQ in Q2 FY27?

SNL Bearings' net profit margin fell from 22.7% to 19.3% sequentially due to rising costs. A scanx.trade report highlighted a significant jump in the cost of materials consumed, which pressured gross margins as sales grew.

Did higher raw material or employee costs drive the 5.2% QoQ increase in total expenses for SNL Bearings?

Higher raw material costs were the primary driver. Scanx.trade reported the cost of materials consumed rose significantly year-on-year in Q2 FY27, a key factor behind the total expense increase and margin compression.

What is the current demand outlook for needle roller bearings from the Indian automotive industry?

Demand is strong. CNBC-TV18 reported that SKF India raised its FY27 revenue growth guidance to around 20%, citing robust demand across all automotive segments including two-wheelers, passenger vehicles, and commercial vehicles.

Is SNL Bearings undertaking any capacity expansion or capex projects?

Yes. According to a news.tulsian.ai report, SNL Bearings' board approved a capital expenditure plan of approximately ₹8 crore for capacity expansion and modernization initiatives. The company funds such projects internally, maintaining its debt-free status.

Is SNL Bearings facing any supply chain issues or concentration risks with key customers?

The company has historically had customer concentration, with about 90% of demand from automotive OEMs. However, stockscans.in notes management has been deliberately broadening its customer base to reduce reliance on sales to its parent company, NRB Bearings.

What are the main concerns analysts have about SNL Bearings' growth trajectory?

Analysts note a stable but stagnant growth profile, with a narrow customer base and exposure to cyclical automotive demand. A StockFin.ai analysis points to the absence of institutional investor interest and a lack of forward-looking growth guidance as areas of focus.

Are FIIs or DIIs increasing their stake in SNL Bearings recently?

No. According to StockFin.ai's shareholding pattern data, both Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) holdings have been at 0.0% for the last several quarters, indicating negligible institutional ownership.

SNL Bearings Q2 profit drop

SNL Bearings' Q2 FY27 net profit was ₹3.09 crore, which is a 10.7% drop from the ₹3.46 crore profit reported in the previous quarter (Q1 FY27). This decline occurred despite a 5.2% sequential increase in revenue to ₹16.05 crore.

SNL Bearings Q2 FY27 results

SNL Bearings announced its Q2 FY27 (July-September 2026) results on November 3, 2026. The company reported revenue of ₹16.05 crore and a net profit of ₹3.09 crore. Year-on-year, revenue grew 8.7% and profit grew 5.5%, but profit fell 10.7% from the prior quarter.

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