SKF India reported a 16% year-on-year sales growth to 5.6 billion INR for Q2 FY27, supported by robust automotive demand. The company also secured a key hybrid transmission order and launched its new 'SKF Vertevo' brand, signaling a strategic shift toward next-gen mobility.
SKF India Q2 Revenue Hits 5.6 Billion INR; H1 Sales Reach 11.2 Billion INR
Reader Takeaway: Strong double-digit revenue growth and hybrid vehicle component wins; margins softened sequentially despite annual improvements.
What just happened
SKF India reported a strong performance for the second quarter of FY27, with sales reaching 5.6 billion INR, a 16% increase compared to the same period last year. For the first half (H1) of FY27, total sales stood at 11.2 billion INR, reflecting a 19% year-on-year growth. While EBITDA margins improved by 155 basis points year-on-year to 14.5%, they saw a sequential decline of 255 basis points.
Why this matters
The company’s ability to secure a significant order for hybrid transmission applications from a leading passenger vehicle OEM underscores its strategic expansion into the electrification space. The order includes a 100% share in Deep Groove Ball Bearings and Tapered Roller Bearings, proving the company's technical competitiveness in the evolving EV and hybrid ecosystem. Furthermore, the global launch of the 'SKF Vertevo' brand highlights management's intent to modernize its market identity around high-speed mobility and racing-inspired performance.
What changes now
SKF India is shifting focus toward high-speed electrical protection requirements, specifically through its new hybrid transmission project. The local development of ceramic bearings and conductive brushes represents a transition from traditional mechanical components to advanced engineered solutions for modern vehicles.
Risks to watch
Investors should monitor the sequential margin compression seen in Q2. Although margins remain higher than last year, the quarter-on-quarter dip of 255 basis points in EBITDA margin indicates potential cost pressures or changes in product mix that need to be watched in upcoming quarters.
Context metrics
- Industrial Production (IIP) growth (YoY): 7.8% for Q2 FY27.
- Automotive production volumes: 8.2 million units in Q2 FY27, up from 7.3 million in Q2 FY26.
- Net Working Capital (NWC): 18.8% of sales, reflecting a 2.9% YoY improvement.
What to track next
Watch for the successful scale-up of the new Driveline business wins and whether the company can sustain its 15%+ EBITDA margin profile amidst fluctuating commodity or operational costs in the second half of the fiscal year.