1. At a Glance
SKF India Ltd — the blue-blooded child of Sweden’s AB SKF — is no ordinary “bearing” company; it’s the Bollywood blockbuster of the mechanical world. With amarket cap of ₹9,692 crore, this Pune-based veteran has turned the humble bearing into a ₹5,062 crore revenue juggernaut. But lately, the plot’s gotten juicier — aNCLT-sanctioned demerger, arecord date of Oct 15, 2025, and amassive capex plan of ₹8,000–9,500 million by 2030for both industrial and automotive spin-offs.
In Q2FY26, SKF clockedsales of ₹13,090.6 millionandPBT of ₹1,406.2 million, proving once again that even in the era of EVs, this 118-year-old global brand still knows how to roll smoothly. Profit rose31.9% YoYto ₹124 crore, while sales inched up5.2% YoY— a classic example of an industrial veteran running like a Swedish marathoner, not a startup sprinter.
Thestock trades at ₹1,960, down about10% over the past year, but let’s be honest — when yourROCE is 28.8%andROE is 21.4%, the market can sulk all it wants; SKF still spins profits like a turbine.
2. Introduction
Let’s face it — few companies can make metal balls and grease sound sexy. Yet,SKF India Ltd, with its Swedish DNA and Indian flair, manages to turn bearings, seals, and lubrication systems into a multi-billion-rupee spectacle.
The company has long been the quiet hero behind everything that moves — from your car’s wheel-end to the turbines in a wind farm. But lately, the plot thickened. After decades of spinning profits, SKF decided to split itself like a Bollywood double role —SKF India (Automotive)andSKF India (Industrial)— a demerger drama that would make even Ambani proud.
The goal? To let each twin shine in its own orbit: automotive chasing EV dreams, and industrial chasing renewable energy revolutions. Throw in an ₹8,000 crore capex buffet, and you have a financial feast worth staying for dessert.
This isn’t just a company update. It’s the story of a veteran reinventing itself in a world where bearings meet bots, and grease meets green goals. And if you think that sounds poetic, wait till you see their numbers.
3. Business Model – WTF Do They Even Do?
SKF India’s business model is basically “everything that rolls, turns, or moves — we make it smoother.”
The company operates through three primary segments:
- Industrial (50%)– The granddaddy of SKF’s empire. From bearings to seals to lubrication systems, this segment serves over 40 industries globally. Think railways, steel, cement, wind energy, and even space tech — if it rotates, SKF is probably inside. It also runs140+ distributorsacross India.
- Automotive (40%)– Where the grease meets glamour. SKF’s automotive division designs precision bearings for EVs, trucks, buses, and two-wheelers. It’s like the Tinder for engines — ensuring perfect matches between drivelines and dreams. With430+ aftermarket distributors, this segment is already one of India’s top wheel-end component providers.
- Exports (10%)– The NRIs of the bearing family. SKF exports to Europe, Asia, Brazil, and the USA — particularly to OEMs and industrial aftermarkets. In FY24, new products for European and Asian customers revved up the export story.
Theirmanufacturing musclespans three plants — Pune, Bengaluru, and Haridwar — capable of producing190 million bearings annually. In FY24, they rolled out160 million, which is almost enough to give every Indian household a bearing (in case someone’s marriage isn’t running smooth).
And yes, they also pay their Swedish parent₹115 crore in royalties, because even engineering dynasties have subscription fees.
4. Financials Overview
| Metric | Latest Qtr (Q2FY26) | YoY Qtr (Q2FY25) | Prev Qtr (Q1FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,309 | 1,244 | 1,283 | 5.2% | 2.0% |
| EBITDA (₹ Cr) | 166 | 124 | 167 | 34.0% | -0.6% |
| PAT (₹ Cr) | 105 | 94 | 118 | 11.7% | -11.0% |
| EPS (₹) | 21.35 | 19.07 | 23.93 | 12.0% | -10.8% |
Annualised EPS = ₹21.35 × 4 = ₹85.4 → P/E = 1960 ÷ 85.4 = 22.9x
Commentary:The quarter was classic SKF — steady growth, improved margins, and
a touch of Scandinavian calm. Revenue crept up like a disciplined Swede at a party, but margins tightened just a bit due to global input costs and pre-demerger restructuring. Still, a 28.8% ROCE means they’re squeezing more juice from every rupee than most peers even dream of.
5. Valuation Discussion – Fair Value Range Only
Let’s unpack this with three lenses:
1. P/E Method
- TTM EPS: ₹108.6
- Industry P/E: ~50.8
- SKF’s P/E: 17.5
Fair value range = ₹108.6 × (18–25) =₹1,955 – ₹2,715
2. EV/EBITDA Method
- EV = ₹8,892 Cr
- EBITDA = ₹739 Cr
- EV/EBITDA = 10.6x
- Industry range: 10–15xFair range = ₹739 × (10–15) = EV ₹7,390–₹11,085 CrSubtract Debt (₹3 Cr) + Add Cash (~₹2,705 Cr Reserves liquid portion ≈ ₹500 Cr estimated surplus) →Equity Value ₹7,900–₹11,600 Cr → ₹1,590–₹2,330/share.
3. DCF (Very Conservative)
Assume FCF ₹400 Cr growing 8% for 5 years, discount 11%.Intrinsic range =₹1,800–₹2,400/share.
📘Educational Disclaimer:This fair value range (₹1,800–₹2,700/share) is for educational analysis only andnot investment advice.
6. What’s Cooking – News, Triggers, Drama
SKF India’s Q2FY26 results came with the kind of plot twists that make even corporate lawyers sit up.
- NCLT-sanctioned demerger:The industrial and automotive businesses are splitting. Therecord date was Oct 15, 2025, with a1:1 share allotment.
- New Management Cast:MD Mukund Vasudevan exited (stage left), replaced byShailesh Kumar Sharmaas the new MD andAashi Aroraas interim CFO.
- Massive Capex Buffet:₹8,000–9,500 million in industrial and ₹4,100–5,100 million in automotive by 2030. Clearly, SKF isn’t just splitting; it’s bulking up.
- Royalty Drama:The ₹115 Cr payment to the parent continues — because nothing says “global harmony” like sending money to Sweden every year.
- Sustainability Parade:85% localization achieved, supplier sustainability programs launched with 55 top suppliers, and a boldnet-zero supply chain by 2050mission.
Think of it as an Indian family business that just went for therapy, found its true calling, and decided to
