Company Overview

SKF India Limited (NSE: SKFINDIA | BSE: 500472) completed a significant corporate restructuring during FY 2025-26, demerging its industrial business into a separate entity while maintaining strong financial performance and sustainability achievements.

Demerger Completion

The company successfully completed the demerger of its Industrial Business into SKF India (Industrial) Limited effective October 1, 2025, sanctioned by the NCLT Mumbai Bench on September 26, 2025. The scheme involved transfer of assets worth ₹22,332.5 million and liabilities of ₹7,717.6 million, resulting in net assets transfer of ₹14,614.9 million. Shareholders received 1 share of the resulting company for every share held in SKF India Limited, with the record date set for October 15, 2025.

Financial Performance

SKF India reported standalone revenue of ₹21,295.9 million for FY 2025-26, with profit after tax of ₹2,660.1 million. The board declared a final dividend of ₹40 per equity share (400% of face value), subject to shareholder approval at the 65th AGM. The company's financials reflect the demerger impact, with continuing operations representing the automotive bearings business and discontinued operations covering the industrial business until September 30, 2025.

Key financial metrics include:

  • Profit Before Tax: ₹4,334.5 million (including both continuing and discontinued operations)
  • Earnings Per Share: ₹53.8 total (₹23.7 from continuing operations, ₹30.1 from discontinued)
  • Total Assets: ₹20,790.7 million post-demerger
  • Capital Expenditure: ₹2,291.9 million incurred during the year

Sustainability Achievements

The company demonstrated strong environmental performance with all three manufacturing facilities (Pune, Bengaluru, Haridwar) achieving decarbonized status through 100% renewable electricity sourcing. Two sites were certified water positive, and the company maintained over 80% waste recycling across operations. Energy consumption totaled 226,060.69 GJ with intensity of 10.61 GJ/₹ million revenue.

Operational Highlights

The manufacturing operations showed robust performance with 74.0% Overall Equipment Effectiveness, 7.4% On-Time Delivery, and 63.3% Capacity Utilization. The company employed 933 employees post-demerger and maintained strong safety records with only 3 recordable injuries and zero fatalities.

Corporate Governance and AGM

The 65th Annual General Meeting is scheduled for August 14, 2026, with key agenda items including adoption of financial statements, dividend declaration, re-appointment of directors, and approval of material related party transactions with SKF India (Industrial) Limited (up to ₹25,291 million) and SKF GmbH (up to ₹4,701 million). The board composition includes Mr. Gopal Subramanyam as Chairperson and Mr. Shailesh Sharma as Managing Director.

Tax and Contingent Liabilities

The company signed a Bilateral APA with CBDT on March 18, 2026, covering FY 2012-13 to FY 2020-21, resulting in incremental tax expense of ₹614.8 million. Contingent liabilities total ₹2,143.8 million, primarily comprising income tax matters (₹1,582.3 million), excise & customs duty (₹257.0 million), and various tax disputes.

Forward Outlook

The demerger enables independent operation of both automotive and industrial businesses, providing distinct growth strategies, improved efficiency, and enhanced strategic flexibility. The company continues to focus on advanced manufacturing initiatives, including IIoT-enabled systems and AI-based vision tools, while maintaining its 75+ year strategic partnership with Scuderia Ferrari HP.