SKF India shares surge up to 8% after cost controls aid margin beat in historically strong Q4

Shares of SKF India Ltd. gained as much as 8% on Friday, May 16, after the company reported healthy fourth quarter earnings, with a sharp improvement in margin.

The fourth quarter is historically strong for the company.

SKF India’s profit in the fourth quarter increased by 16% to ₹203 crore from the previous year’s ₹175 crore. It was also higher by 85% sequentially from ₹109.5 crore in the previous quarter.
Its revenue was up by a percent at ₹1,213 crore from ₹1,203 crore in the year-ago period. Sequentially, the revenue declined 3% from ₹1,256 crore in the third quarter.

SKF India’s earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 33% at ₹284 crore from ₹213 crore in the previous year. In the third quarter, the company’s EBITDA was at 121 crore.

SKF India’s margin in the March quarter expanded to 23.5% from 17.7% in the same period last year and from 8.1% in the third quarter of FY25.

SKF India’s cost controls helped its margin improve. The gross margin improved both, sequentially and from the previous year. It expanded to 49% from 33% in the previous quarter and from 41% in the year-ago period.

The raw material costs declined 26% sequentially and were down 13% from the previous year.

Mukund Vasudevan of SKF India told CNBC-TV18 that the margin expansion has come from the industreals and auto segments as well. He said auto is a relatively small portion of the business.

Vasudevan said the profit before tax growth will be in 16-19% range. He said the company will see high single digit-low double digit revenue growth in the financial year 2026.

Shares of SKF India Ltd gained 8.4% to hit an intraday high of ₹4,688 apiece on Friday, May 16. The stock was up nearly 5.75% at ₹4,572.9 apiece at 10.30 am

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