SKF India Ltd Q2FY26 – The ₹13,090 Million Demerger Drama and the ₹8,000 Crore Capex Marathon: Bearings, Breakups, and Boardroom Ballet
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 a market 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 — a NCLT-sanctioned demerger, a record date of Oct 15, 2025, and a massive capex plan of ₹8,000–9,500 million by 2030 for both industrial and automotive spin-offs.
In Q2FY26, SKF clocked sales of ₹13,090.6 million and PBT 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 rose 31.9% YoY to ₹124 crore, while sales inched up 5.2% YoY — a classic example of an industrial veteran running like a Swedish marathoner, not a startup sprinter.
The stock trades at ₹1,960, down about 10% over the past year, but let’s be honest — when your ROCE is 28.8% and ROE 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) and SKF 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 runs 140+ distributors across 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. With 430+ 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.
Their manufacturing muscle spans three plants — Pune, Bengaluru, and Haridwar — capable of producing 190 million bearings annually. In FY24, they rolled out 160 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.
