Financial Results Overview

The Board of Directors approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended 30th June 2026 along with the Limited Review Report of the Statutory Auditors, M/s. Deloitte Haskins & Sells LLP, who issued unmodified opinions.

Standalone Financial Results (INR in Million)

Quarter Ended June 30, 2026:

  • Revenue from operations: ₹6,001.6
  • Total income: ₹6,001.6
  • Total expenses: ₹5,163.8
  • Profit before exceptional items and tax: ₹837.8
  • Exceptional items: ₹0
  • Profit before tax: ₹837.8
  • Tax expense: ₹219.4 (Current tax: ₹191.3, Deferred tax: ₹28.1)
  • Profit for the period: ₹618.4
  • Total comprehensive income: ₹610.9
  • Paid-up equity share capital: ₹494.4 (face value ₹10 each)
  • EPS (Basic & Diluted) for continuing operations: ₹12.5
  • EPS (Basic & Diluted) for continuing and discontinued operations: ₹12.5

Comparative Figures:

  • Quarter Ended March 31, 2026: Profit before tax ₹461.0, Profit after tax (₹202.3)
  • Quarter Ended June 30, 2025: Profit before tax ₹631.5, Profit after tax ₹467.4

Exceptional Items (Note 4)

i. Labour Codes Impact: The Government of India notified four Labour Codes on November 21, 2025, consolidating 29 labour laws. The Company assessed an incremental gratuity impact of ₹24 million for FY2026 due to change in wage definition, treated as an exceptional item in Q4 FY2026.

ii. Bilateral Advance Pricing Agreement (BAPA): The Company entered into a BAPA with CBDT on March 18, 2026, covering FY2012-13 to FY2020-21. This resulted in an incremental tax expense of ₹614.8 million (including interest of ₹72.8 million treated as exceptional item) in Q4 FY2026. The tax charge includes ₹88.8 million for secondary adjustments allocated between SKF India and the Resulting Company per the demerger scheme. Modified Tax Returns were filed in Q1 FY2027 under section 92CD of Income Tax Act, 1961.

iii. Demerger Expenses: FY2026 included demerger expenses of ₹174.2 million for IT costs, professional services, and estimated transfer premium.

Demerger Details (Notes 5, 6, 7, 8)

The Scheme of Arrangement between SKF India Limited (Demerged Company) and SKF India (Industrial) Limited (Resulting Company) was approved by NCLT on September 26, 2025, effective October 1, 2025.

  • On October 1, 2025: SKF (UK) Ltd transferred 3,129,581 shares (6.33%) and SKF Forvaltning transferred 196,423 shares (0.40%) to AB SKF, increasing AB SKF's holding to 25,992,059 shares (52.58%).
  • On December 22, 2025: AB SKF transferred its entire 25,992,059 shares to SKF Interim AB (renamed SKF Vertevo AB on March 9, 2026).
  • The Industrial Undertaking was demerged as a going concern. Resulting Company allotted shares to shareholders in 1:1 ratio on October 2, 2025, listed on BSE and NSE on December 5, 2025.
  • Financial results for previous periods have been re-presented with the Industrial Undertaking shown as discontinued operations.
  • Land transfer is ongoing. Resulting Company will bear the entire stamp duty and transfer premium cost of ₹1,639.2 million, though primary responsibility rests with Demerged Company.

Discontinued Operations (Standalone)

Quarter Ended June 30, 2025:

  • Revenue: ₹8,206.3 million
  • Profit before tax: ₹970.8 million
  • Tax expense: ₹252.2 million
  • Profit after tax: ₹718.6 million

Year Ended March 31, 2026 (upto September 30, 2025):

  • Revenue: ₹16,336.9 million
  • Profit before tax: ₹1,984.4 million
  • Tax expense: ₹496.5 million
  • Profit after tax: ₹1,487.9 million

Consolidated Financial Results (INR in Million)

Quarter Ended June 30, 2026:

  • Revenue from operations: ₹6,001.6
  • Total income: ₹6,001.6
  • Total expenses: ₹5,163.8
  • Profit before exceptional items and tax: ₹837.8
  • Exceptional items: ₹0
  • Share of profit of associates: ₹0.8
  • Profit before tax: ₹838.6
  • Tax expense: ₹219.4 (Current tax: ₹191.3, Deferred tax: ₹28.1)
  • Profit for the period: ₹619.2
  • Total comprehensive income: ₹611.7
  • Paid-up equity share capital: ₹494.4
  • EPS (Basic & Diluted): ₹12.5

Associates Included: Sunstrength Renewables Private Limited and Clean Max Taiyo Private Limited. Their results were not reviewed but are not material to the Parent.

Additional Information

  • The financial results are available on BSE (www.bseindia.com), NSE (www.nseindia.com), and the Company's website (www.skf.com/in).
  • Figures for quarter ended March 31, 2026 are balancing figures between audited FY2026 and unaudited figures up to December 31, 2025, with no material adjustments for earlier periods.
  • The Company operates in a single business segment of manufacturing bearings and related components.