SKF India Indus. Q2 FY27 Results (NSE: SKFINDUS)
Signal: Steady quarter
The read
The trajectory improved sequentially: revenue rose 7.4% QoQ to ₹10,428.6 million and estimated EBITDA margin recovered to about 12.0% from 10.1% in Q1FY27, helped by lower raw-material intensity and employee cost leverage; the counterweight is H1 operating cash flow of only ₹431.5 million before exceptional items against ₹1,498.3 million of estimated H1 PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,042.86 Cr | 28.3% | 7.4% |
| EBIT | ₹124.9 Cr | N/A | |
| Net profit | ₹87.91 Cr | N/A | |
| EPS | ₹17.8 | N/A | |
| EBIT margin | 12.0% |
P&L walk
Standalone Q2FY27 revenue was ₹10,428.6 million, up 28.3% YoY and 7.4% QoQ; lower raw-material intensity and sequentially lower employee cost supported an estimated EBITDA margin recovery to 12.0%, while depreciation rose 34.0% YoY and operating cash conversion remained weak in H1.
Key positives
- Revenue increased to ₹10,428.6 million, +28.3% YoY and +7.4% QoQ, with the filing attributing no specific volume or price driver.
- Raw-material, purchase and inventory costs fell to 68.2% of revenue from 67.1% a year earlier and 72.2% in Q1, supporting sequential gross-margin recovery.
- Employee cost rose only 7.4% YoY to ₹592.2 million versus 28.3% revenue growth, helping estimated EBITDA margin recover to about 12.0% from 10.1% in Q1.
Key concerns
- H1 operating cash flow before exceptional items was ₹431.5 million versus ₹1,677.7 million in H1FY26, despite H1 revenue of ₹20,136.3 million.
- Inventory absorbed ₹1,368.6 million of H1 cash, while cash and equivalents declined to ₹3,183.8 million from ₹5,691.7 million at March 31, 2026.
- Depreciation increased 34.0% YoY to ₹106.0 million, requiring the enlarged property, plant and equipment base to generate adequate returns.
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