Financial Performance Q2 FY27 (Standalone)

  • Revenue from operations stood at ₹969 crores, representing a growth of 25.4% over Q2 FY26 (₹773 crores implied) and 4.3% growth over Q1 FY27.
  • Profit Before Tax (PBT) was ₹156 crores, up 29.5% YoY from ₹120 crores in Q2 FY26. PBT margin improved to 16.1% from 15.6% (50 basis points improvement).
  • Net Profit After Tax (PAT) was ₹116 crores, up 29.7% YoY from ₹89 crores.
  • EBITDA margin for the quarter was approximately 19.2%.

Financial Performance H1 FY27 (Standalone)

  • Revenue from operations stood at ₹1,894 crores (INR 18,984 million), an increase of 20% year-on-year.
  • Profit Before Tax (PBT) was ₹306 crores.
  • Profit After Tax (PAT) was ₹231 crores, an increase of 19%.

Consolidated Performance

  • Q2 FY27 consolidated revenue stood at ₹986 crores compared to ₹786 crores in Q2 FY26.
  • Consolidated PBT was ₹162 crores.
  • Consolidated PAT was ₹120 crores, an increase of approximately 29% YoY.
  • H1 FY27 consolidated revenues were ₹1,929 crores, and consolidated net profit after tax was ₹240 crores.

Segment-wise Revenue Breakdown (Q2 FY27)

  • Rail: ₹156.7 crores (16% of total revenue)
  • Mobile Others: ₹204 crores (21%)
  • Distribution: ₹148.8 crores (15%)
  • Process: ₹190.9 crores (20%)
  • Exports: ₹262.7 crores (27%)
  • Export incentives make up the remainder to reach the total of ₹969.3 crores.

Operational Updates

Bharuch Plant:

  • The new Bharuch facility contributed ₹75 crores in revenue for Q2 FY27.
  • Overall plant capacity utilization is approximately 60%.
  • SRB (Spherical Roller Bearing) lines have reached 70% utilization.
  • CRB (Cylindrical Roller Bearing) lines are below 60% utilization.
  • The plant is in a ramp-up phase with a focus on improving utilization.

Expansion Projects:

  • Investment towards rail expansion at Jamshedpur and plain bearing at Bharuch are on target.
  • The new rail line is expected to begin trial runs in November and December 2026, followed by PPAPs (Production Part Approval Process) and qualification.
  • The amalgamation of Timken GGB Technology Private Limited with Timken India Limited is progressing smoothly, aimed at driving synergies and simplifying the structure.

Cost Environment and Margin Impact

  • Significant cost inflation was noted across raw materials (carbides up 200%, steel), fuel, gas, and labor.
  • Management stated that the bearing industry cannot absorb these costs and must pass them on to customers for survival.
  • The 130 basis point QoQ gross margin impact was attributed to a 50/50 split between input cost inflation (price vs. cost timing difference) and an unfavorable revenue mix.
  • The unfavorable mix was primarily due to lower contribution from the higher-margin rail segment, as a global rail tender was delayed.

Demand Outlook

  • Domestic demand is expected to remain robust, supported by 7% GDP growth and infrastructure spending.
  • Key growth segments identified are rail, heavy trucks, and off-highway vehicles globally and in India.
  • Export momentum is expected to remain healthy, with the North American rail market showing future potential.
  • The Process industry segment (ex-CRB/SRB) is stable, with wind energy performing well due to gearbox production moving to India.

Additional Q&A Highlights

  • The QoQ decline in depreciation (₹289 million from ₹314 million) was due to an accounting reclassification of approximately ₹1.3 crores from other expenses to depreciation; there was no structural reduction.
  • The company does not disclose separate margins for the Bharuch plant (CRB/SRB) but noted that industrial segments generally have better margins than automotive.
  • For the wind business, the company focuses on gearbox bearings rather than the more commoditized main shaft bearings. Localization of larger wind bearings is being handled by other Timken entities in India, not Timken India Limited.
  • The company is investing ₹70 crores in GGB (plain bearings) capacity at Bharuch, with an expected asset turnover of 1.5 to 2.