Timken India Q2 FY27 Earnings Call — Analysis (NSE: TIMKEN)
Timken India posted strong Q2FY27 revenue growth of 25.4% YoY to ₹969 Cr driven by a 60% surge in exports and Bharuch plant ramp-up, while Jamshedpur rail capex approaches trial runs in Nov-Dec.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue ₹986 Cr ( +25.4% YoY ) . New guidance — Q4FY27 bharuch plant overall utilizati… 70-75% .
Results
Standalone revenue rose 25.4% YoY to ₹969.3 Cr with EBITDA margin at ~19.2% and PAT up 29.7% YoY to ₹116 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Standalone Revenue from Operations | ₹969.3 Cr | +25.4% | yoy · Q2FY27 |
| Standalone Revenue from Operations | ₹969.3 Cr | +4.3% | qoq · Q2FY27 |
| Standalone PBT | ₹156 Cr | +29.5% | yoy · Q2FY27 |
| Standalone PBT Margin | 16.1% | +50bps | yoy · Q2FY27 |
| Standalone PAT | ₹116 Cr | +29.7% | yoy · Q2FY27 |
| Standalone EBITDA Margin | 19.2% | none · Q2FY27 | |
| Consolidated Revenue | ₹986 Cr | +25.4% | yoy · Q2FY27 |
| Consolidated PAT | ₹120 Cr | +29% | yoy · Q2FY27 |
| Bharuch Plant Revenue | ₹75 Cr | none · Q2FY27 · of Q2FY27 revenue | |
| Exports Segment Revenue | ₹262.7 Cr | +60% | yoy · Q2FY27 |
| Rail Segment Revenue | ₹156.7 Cr | none · Q2FY27 · 16% share of Q2 revenue | |
| Mobile Others Segment Revenue | ₹204 Cr | none · Q2FY27 · 21% share of Q2 revenue | |
| Process Segment Revenue | ₹190.9 Cr | none · Q2FY27 · 20% share of Q2 revenue | |
| Distribution Segment Revenue | ₹148.8 Cr | none · Q2FY27 · 15% share of Q2 revenue |
Guidance
Management expects overall Bharuch plant capacity utilization to reach 70-75% by end of FY27, with Jamshedpur rail line trial runs starting in Nov-Dec 2026.
What management committed to
- Overall Bharuch plant utilization (SRB and CRB lines combined) will be between 70% and 75% by the end of FY27. — 70-75%, Q4FY27
- [Railway bearing] tender committee will be set in the next 2-3 weeks [from Oct 30, 2026]. — Q3FY27
- GGB products (metal polymer and FRC plain bearings) will soon be produced at [our] Bharuch facility, supplementing imported products. — FY28
Key themes
Capacity ramp-up and export momentum
Operational commentary
- Bharuch facility overall capacity utilization reached ~60% in Q2, with Spherical Roller Bearing (SRB) lines achieving 70% utilization while Cylindrical Roller Bearing (CRB) lines remain below 60%.
- Jamshedpur rail expansion (₹120 Cr capex) is on schedule to enter trial runs in November and December 2026, followed by customer PPAP submissions and line qualification.
- GGB plain bearing facility investment at Bharuch of ₹70 Cr (₹35 Cr FRC + ₹35 Cr metal polymer) is underway with expected asset turn of 1.5x-2.0x.
- Amalgamation of Timken GGB Technology Private Limited into Timken India Limited is progressing through regulatory approvals to capture structural and operational synergies.
- Domestic wind energy market is seeing structural revival; Timken India serves gearbox applications (high-stage carrier taper bearings) via sister-concern sourcing, avoiding commoditized main-shaft bearings.
- Input cost inflation seen in raw materials (carbides up 200%, steel, fuel, industrial gases, labor); management intends to pass through cost escalations across auto and industrial customer segments.
Analyst Q&A
Q. What was Bharuch plant revenue and capacity utilization in Q2, and what is the ramp-up trajectory?
Bharuch contributed ~₹75 Cr in Q2; overall utilization is ~60% (SRB lines at 70%, CRB lines <60%), and is targeted to reach 70%-75% by Q4FY27.
Q. Why did depreciation drop QoQ while capital work-in-progress increased significantly?
Depreciation reduction was an accounting reclassification true-up of ~₹1.3 Cr between other expenses and depreciation between Q1 and Q2, not a structural decline.
Q. What is the margin differential between CRB/SRB and TRB product lines?
Management declined to disclose plant-level or product-level margin differentials, stating only that industrial bearings (CRB/SRB) directionally carry better holistic margins than automotive bearings.
Q. Are wind OEMs substituting taper roller bearings with plain hydrodynamic bearings in larger turbines (4-5MW)?
Plain bearings/sleeves are adopted only in initial low-stage positions, whereas high-stage carrier taper roller bearings cannot be replaced with current technology; GGB is developing Gen-3/4 engineered plain bearings to capture replacement demand.
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