Q3 FY26 Sales came in at ₹24.77 Cr. Sounds fine. PAT? Negative ₹1.48 Cr.
Yes, a roller manufacturer that reduces friction in machinery seems to have increased friction in its own P&L.
Operating margin collapsed to 5.65% from 25.34% last quarter. Tax rate? 2,014%. Yes, that’s not a typo.
Meanwhile, the stock trades at 5.31x book value with a 50+ P/E.
So what is SKP?
A hidden precision engineering gem going through a transition? Or a smallcap rollercoaster where margins spin faster than the bearings?
Let’s open the factory gates.
2. Introduction – Bearings, Balls & Balance Sheet Drama
SKP Bearing Industries Ltd was incorporated in 1992. They manufacture precision needle rollers, cylindrical rollers, pins, and balls.
Translation for lazy investors:
They make tiny metal components that help big machines move smoothly.
And ironically, their own financial journey hasn’t been smooth at all.
They are IATF-16949 certified. That’s automotive-grade precision certification. Meaning they supply Tier-1 and Tier-2 customers. Not roadside mechanics.
Their manufacturing is based in Wadhwan, Gujarat with 3 plants and capacity of 1,200 million pieces annually.
They recently:
Set up a new advanced steel ball plant.
Acquired a 95-year-old French company (Valette & Gaurand Industries).
Started wind and solar power operations.
Announced aggressive revenue targets.
Sounds ambitious.
But ambition and execution are two different ball bearings.
Let’s decode the business model.
3. Business Model – WTF Do They Even Do?
Imagine a gearbox. Or a car engine. Or a wind turbine.
Inside it are tiny rolling elements that reduce friction and support load.
That’s SKP’s world.
Product Portfolio
Needle Rollers (≤6mm diameter, long shape)
Cylindrical Rollers (3–40mm)
Precision Pins
Balls (0.6mm to 22.5mm)
These go into:
Automotive components
Starter motors
Steering systems
Fuel injection
Magnetic clutch applications
Industrial machinery
Revenue exposure (FY24 application mix):
Magnetic Clutch: 29%
Bearings: 21%
UJ Cross: 17%
Starter Motors: 14%
Domestic Revenue: 94.69% Exports: 5.31%
They are trying to increase exports and reduce customer concentration risk.
And then comes the France story.
They acquired Valette & Gaurand Industries (VGI), a 95-year-old French precision manufacturer.
Ambitious move for a ₹270 Cr company.
But post acquisition, French operations saw revenue collapse due to legal entity revalidation issues.
You change invoice name in Europe, and suddenly OEMs behave like you changed the engine blueprint.
So France currently is loss-making.
Question for you:
Are they building a global precision brand? Or did they buy a European headache?
