SKF India Industrial Reports ₹119 Cr Profit Amidst Demerger Costs

SKF India (Industrial) Limited announced its financial results for the fiscal year ended March 31, 2026. The company posted a profit of ₹118.97 crore on total income of ₹963.20 crore.

Financial Results Announced

For the fiscal year ending March 31, 2026, SKF India (Industrial) Limited reported total income of ₹9,632.0 million (₹963.20 crore) and a profit of ₹1,189.7 million (₹118.97 crore).

The Board of Directors has recommended a final dividend of ₹10 per equity share, subject to shareholder approval.

These figures include significant exceptional items totaling approximately ₹2,004.1 million (₹200.41 crore). These expenses are related to demerger activities and statutory impacts arising from the implementation of new labor codes.

Demerger Impacts Financials

These are the first reported results following the demerger of SKF India Limited's industrial undertaking, which became effective on October 1, 2025. The substantial demerger expenses and the statutory impacts from new labor codes have notably affected the reported financials for the year.

The company has explicitly stated that comparative financial periods are not directly comparable with the current year due to restatements related to the demerger's effective date.

Background on Demerger and Labor Codes

SKF India (Industrial) Limited was established through the strategic demerger of SKF India Limited's industrial business operations. This move aims to create distinct entities for different market segments.

The ongoing implementation of new Labor Codes across India presents compliance complexities and may lead to adjustments in employee benefit liabilities. The company is actively monitoring these developments.

Dividend Approval and Comparability Issues

Shareholders will need to approve the proposed final dividend of ₹10 per equity share at the upcoming Annual General Meeting.

Financial comparability remains challenging, as the current year's results reflect the demerged entity's operations. Prior periods have been restated to account for the demerger.

Further adjustments to employee benefit liabilities could arise as the Central and State rules for the new Labor Codes are finalized.

Key Considerations for Investors

• The dividend recommendation requires shareholder approval.
• FY26 financial metrics are difficult to compare directly with historical data due to the demerger and restatements.
• Ongoing monitoring of new labor code regulations may lead to future adjustments in employee benefit obligations.

Peer Performance Snapshot

For the fourth quarter of FY25, Timken India reported revenue of ₹439.3 crore and profit after tax (PAT) of ₹57.1 crore, proposing an ₹11 per share dividend. This indicates a different scale and profit margin compared to SKF India.

Schaeffler India posted FY25 revenue of ₹7,293 crore and PAT of ₹651 crore, recommending a ₹10.4 per share dividend, suggesting a larger operational footprint.

NRB Bearings recorded FY25 revenue of ₹3,003 crore and PAT of ₹168 crore, with a ₹1.5 per share dividend. This highlights variations in dividend policy and operational scale across the sector.

Key Financial Metrics

• Total Income: ₹9,632.0 million for FY26
• Profit for the period: ₹1,189.7 million for FY26

Outlook and Next Steps

Investors will be watching for shareholder approval of the recommended final dividend payment.

The finalization of Central and State rules for the new Labor Codes and their precise impact on employee benefits will be a key development.

The operational integration and standalone performance trajectory of the newly demerged SKF India (Industrial) Limited entity will be closely tracked.