Timken India Q1 FY27 Results (NSE: TIMKEN)
Signal: Steady quarter
The read
The trajectory improved from the Q3FY26 trough: consolidated EBITDA margin is 20% versus the prior quarter's 22% and Q3FY26's 13%, while revenue is up 14.7% YoY and PAT is up 10.4%; the key watchpoint is that 50.1% YoY depreciation growth is absorbing much of the operating improvement, and the quarter's ₹33.73 million tax reversal provides a modest non-operating lift.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹943.32 Cr | +14.7% | -13.4% |
| EBIT | ₹157 Cr | N/A | |
| Net profit | ₹119.66 Cr | +10.4% | |
| EPS | ₹15.91 | +10.4% | |
| EBIT margin | 20% |
P&L walk
Consolidated revenue increased 14.7% YoY while gross margin expanded 94bps to 40.0%; EBITDA margin was 20%, but PAT growth of 10.4% lagged revenue because depreciation rose 50.1%.
Key positives
- Consolidated revenue increased 14.7% YoY to ₹9,433.20 million, marking a clear recovery from the ₹780 Cr revenue reported in Q3FY26.
- EBITDA margin was 20%, materially above the 13% OPM reported in Q3FY26, although below the 22% reported in Q4FY26.
- Gross margin expanded 94bps YoY to 40.0%, despite cost of materials consumed increasing 34.6% YoY.
- Finance costs declined 34.3% YoY to ₹7.59 million, supporting conversion from operating profit to PAT.
Key concerns
- Revenue declined 13.4% QoQ to ₹9,433.20 million and PAT declined 24.4% QoQ to ₹1,196.59 million, so the Q4FY26 peak has not been sustained sequentially.
- Depreciation increased 50.1% YoY to ₹313.51 million, significantly faster than revenue growth of 14.7%, constraining PAT growth to 10.4%.
- Cost of materials consumed rose 34.6% YoY to ₹3,590.73 million and raw-material intensity increased to 38.1% of revenue from 32.5%, despite the reported gross-margin improvement.
- Three senior management personnel ceased to be senior management persons due to organizational restructuring, although they remain employees.
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