01 — At a Glance
Post-Demerger: The Company That Shrunk 50% In One Quarter
- 52-Week High / Low₹2,396 / ₹1,560
- Q3 FY26 Revenue₹577 Cr
- Q3 FY26 PAT₹62 Cr
- Q3 FY26 EPS₹12.55
- Annualised EPS (Q3×4)₹50.20
- Book Value₹558
- Price to Book2.84x
- Dividend Yield0.92%
- Debt / Equity0.00x
- Stock Return (1Y)-6.66%
Reality Check: Q3 FY26 (Oct-Dec 2025) is automotive-only. The industrial segment (52% of pre-split revenue) is now a separate company. Revenue of ₹577 Cr is NOT a collapse—it’s a division. EPS ₹12.55 (down 71% YoY) is NOT a business failure—it’s structural. The company you’re looking at is half the size of the one you were looking at in Q3 FY25. That’s the demerger talking.
02 — Introduction
The Demerger Was Supposed to Create Two Fit-For-Purpose Companies. It Created One Struggling Automotive Entity.
October 1, 2025: SKF India officially demerged. The industrial business became SKF India (Industrial), a separate listed company. The automotive business remained as SKF India (continuing). October 17, 2025: New shares allotted to existing shareholders. Q3 FY26 is the first full quarter of this split structure.
This Q3 result is automotive-only. That’s why the revenue and profit look halved. They are halved. The industrial segment—which was growing 13% YoY in Q1 FY26—is now reporting separately and isn’t part of this P&L.
The problem: splitting mid-year, mid-crisis, mid-auto slowdown has created temporary chaos. Scale is gone. Fixed cost absorption is reduced. Management clarity on the standalone path is missing. And the stock—down 29.6% in 6 months—reflects all of this anxiety.
From Aug 2025 Concall: “Different macro dynamics” and “dissimilar customer needs” justified the split. But post-demerger Q3 results show that what management called “focused strategy” looks like “loss of leverage.” The automotive entity is now exposed to flat/negative auto production growth without the buffer of industrial demand.
03 — Business Model: Now It’s Just Automotive. And Auto Is Soft.
52% Industrial + 39% Auto → 0% Industrial + 100% Auto. Welcome to Narrower Margins.
Pre-demerger, SKF India was a diversified bearing/seals supplier serving industrial, automotive, and export customers. Post-demerger, this “continuing” entity is automotive-only: cars, trucks, 2-wheelers, aftermarket spare parts.
The manufacturing footprint: Bangalore plant (automotive), parts of Pune. Three facilities shifted to the industrial entity. The OEM customer base: Maruti, Hyundai, Mahindra, Bajaj, Ashok Leyland. The aftermarket: 430+ distributors, directly reached.
The macro headwind: 2-wheeler production (Q1 FY26) was 6.2 Mn units (seasonal but soft). CV production was 0.3 Mn units (flat). PV production was 0.3 Mn units (down YoY). This is the segment SKF chose to keep. The segment it gave away (industrial, growing 13%) is now someone else’s to profit from. Strategic genius, or a mistake? Time will tell.
Q3 Revenue₹577 CrAutomotive only
OPM %14.0%Compressed
YoY Change-69.8%Due to split
Annualized Rev₹2,300 CrEstimated
The Unspoken Problem: Automotive bearing demand is correlated to vehicle production. With 2W production flat, CV production flat, PV production down—the end market is soft. The industrial entity (which was insulated by capex cycles and infrastructure spending) is now separate. This automotive entity has no hedges left.
💬 Was demerging automotive (flat/negative growth) away from industrial (13% growth) strategic brilliance or a management fumble? Comments welcome!
04 — Financials Overview: Q3 FY26 — The Apples-and-Oranges Problem
Q3 FY26 Looks Like a Catastrophe. It’s Actually Just a Structural Artifact.
