SKFINDIA
Micro CapSKF India Limited
Auto
SKF India Limited is an Indian manufacturer and supplier of bearings, seals, mechatronics, and lubrication systems, primarily serving the automotive and industrial sectors. The company focuses on innovative products to help customers build efficient vehicles and aims for growth through commercial excellence and capability building.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -51% YoY · PAT -110% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹595 Cr | -51.0% | +3.1% |
| EBITDA | ₹33 Cr | -88.4% | -59.8% |
| Operating margin | 6.0% | -1700 bps | -800 bps |
| PAT | ₹-20 Cr | -109.8% | -132.3% |
| PAT margin | -3.4% | -2010 bps | -1411 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 sales grew 3% QoQ and 14.8% YoY, driven by volumes. However, PBT significantly declined by 770 bps QoQ and 694 bps YoY, impacted by one-off factors. Full-year FY26 sales rose 12.7% YoY, but PBT margin contracted to 12.3% from 19.2% in FY25.
Despite healthy volume-led sales growth in Q4 FY26 and for the full year, the sharp contraction in PBT margins QoQ and YoY is concerning. Management attributes this to 'one-off factors' and 'higher cost,' which require further clarity. The decline in Net Working Capital % of Sales is a positive, but overall profitability is under pressure.
Net Sales by Customer Segment (Q4 FY26)
Latest issuer-disclosed distribution across 4 reported categories.
Electric Vehicle (EV) Component Wins
Secured new business for EV eMotors Bearings (DGBB) in 2W/3W and EV eAxle Reducer, eMotor Bearings, and Conductive Brush in Passenger Vehicles.
New Business in 2W/3W Segment
Won new business for Wheel Speed Sensor Bearing for ABS (DGBB) and Wheel Hub Bearings (HUB), alongside portfolio range extension.
New Business in Passenger Vehicles
Secured new business for Manual and Automotive Transmission Bearings (DGBB, TRB, CRB) and Pinion Bearings (TRB).
New Business in Commercial Vehicles
Achieved new business wins for Transmission Bearings (DGBB and TRB) and Unitized Wheel Bearings (HUB).
Improved Automotive Production
Macro Key Indicators show Automotive production improved compared to Q3 FY26.
Positive Industrial Production Growth
IIP-Industrial Production Growth (YoY) for Q4 FY26 was 4.1%, indicating a supportive industrial environment.
Profitability Impact from One-off Factors
Q4 FY26 profitability was 'Impacted by one-off factors' leading to a significant PBT margin decline.
Higher Costs
FY26 profitability was affected by 'Higher cost partially offset with volume growth', contributing to PBT margin contraction.
Unspecified One-off Factors
Q4 FY26 profitability was 'Impacted by one-off factors' which are not detailed, posing a risk to future earnings predictability.
Cost Management
Higher costs impacted FY26 profitability, suggesting potential challenges in cost pass-through or operational efficiency.
Forward-Looking Statement Risks
Management's forward-looking statements are 'subject to risk, and uncertainties and actual results may defer materially'.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both QoQ and YoY comparisons are crucial. QoQ highlights sequential momentum and the immediate impact of 'one-off factors' on profitability. YoY provides context for annual growth trends and the broader performance against the previous fiscal year, especially for a business with potential seasonality.
Sales Growth (QoQ)
Q4 FY26 Sales: 5.6 BINR, up 3% QoQ. Volume growth contributed +3.4% QoQ, while Price/Mix was -0.4% QoQ.
Sales Growth (YoY)
Q4 FY26 Sales: 5.6 BINR, up 14.8% YoY. Volume growth contributed +11.8% YoY, and Price/Mix was +3.1% YoY.
PBT Margin (QoQ)
Q4 FY26 PBT% was 9.0%, a decline of 770 bps QoQ from 16.7% in Q3 FY26. PBT (excl. exceptional items) was 534 MINR.
PBT Margin (YoY)
Q4 FY26 PBT% was 9.0%, a decline of 694 bps YoY from 22.5% in Q4 FY25. PBT (excl. exceptional items) was 534 MINR.
RACE Strategy 2030
Strategic priorities include: Reduce CO2 with Innovative Products, Accelerate Growth Through Commercial Excellence, Capability and Capacity Building, and Execute with Speed, Agility and Attentiveness.
Focus on Commercial Excellence
Management aims to 'Accelerate Growth Through Commercial Excellence' as a key strategic priority.
Capability and Capacity Building
A strategic priority is 'Capability and Capacity Building across Full Value Chain' to support future growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| PBT Margin | 9.0% in Q4 FY26 (excl. exceptional items) | Recovery in PBT margin and clarity on the 'one-off factors' that impacted Q4 FY26 profitability. |
| Net Working Capital (NWC) % of Sales | 24.3% in Q4 FY26 | Continued improvement or stability in NWC % of Sales, indicating efficient working capital management. |
| New Business Wins & EV Penetration | Secured new EV component wins and other segment-specific business. | Further announcements of new business wins, especially in the EV segment, and their contribution to revenue. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -4.7% / mo · near 52W low
Technical chart
SKFINDIAdaily · 3Y-22.4%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 37.
- SMA20 falling (~3.8% over last month) — short-term momentum negative.
- RSI(14) at 37 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 29% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Cash flow contributes 8/10 to the score.
- Balance sheet contributes 9/15 to the score.
Main drags
- Fair-value margin of safety is negative at -350.0%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 4/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 70th percentile of the scored universe and 56th percentile within Auto. Main check: results consistency is weak at 43/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 recent quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 56th pctile, median 71 · Micro: 56th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.2%.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸3 recent quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -3.1%.
- ▸OPM spread across recent quarters is 17%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 27.20
- P/B
- 5.96
- EV/EBITDA
- 15.05
- Market Cap
- 7926.00Cr
Profitability
- ROE
- 14.80%
- ROCE
- 24.20%
- ROA
- 7.46%
- Dividend Y
- 2.49%
Growth (CAGR)
- Revenue 5Y
- 7.00%
- EPS 5Y
- -2.25%
- Revenue 3Y
- -4.00%
- EPS 3Y
- -18.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- —
- Altman Z
- 4.24
- Book Value
- 269.00
Cash Flow
- FCF Yield
- 2.28%
- FCF Positive Y
- 6/5
- OCF
- 363.00 Cr
- EPS TTM
- 53.83
Shareholding
- Promoter Hold
- 52.58%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 20%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.