Timken India Q1 FY27 Results (NSE: TIMKEN)
Signal: Growth decelerated
The read
Timken India delivered solid YoY growth with revenue +14.7% to ₹943 Cr, EBITDA margin expanding 77bps to 20%, and PAT +10.4% to ₹120 Cr. The QoQ decline is seasonal (Q4FY26 was elevated). The GGB acquisition is now fully consolidated, adding depreciation but no material drag on margins. The trajectory remains positive, driven by industrial and automotive demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹943.32 Cr | 14.7% | -13.4% |
| EBIT | ₹157 Cr | 14.4% | |
| Net profit | ₹119.66 Cr | 10.4% | |
| EPS | ₹15.91 | 10.4% | |
| EBIT margin | 16.6% |
P&L walk
Revenue grew 14.7% YoY on volume growth; gross margin expanded 94bps to 40.0% driven by mix; employee cost grew slower (12.9% vs rev 14.7%) providing slight leverage; depreciation jumped 50.1% YoY reflecting GGB acquisition assets; EBITDA margin expanded 77bps to 20.0%; PAT grew in line with operating profit, with tax rate higher (23.4% vs 20.3%) partly offset by lower finance cost.
Key positives
- Revenue grew 14.7% YoY, driven by volume in bearings segment.
- EBITDA margin expanded 77bps YoY to 20.0%, aided by operating leverage on employee costs.
- EPS ₹15.91, up 10.4% YoY, clean with no dilution.
- Gross margin stable at 40.0% despite raw material cost increase, indicating pricing discipline.
Key concerns
- QoQ revenue and PAT declined sharply (-13.4% and -24.4%) due to seasonal Q1 softness post Q4 spike.
- Depreciation jumped 50.1% YoY from GGB acquisition, reducing net margin expansion.
- Effective tax rate rose to 23.4% from 20.3% YoY, partly due to lower reversal of provisions.
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