SKF India share price rises 4.2% to Rs 1,639 on strong Q1 margins, PV win

SKF India Ltd shares were trading firm on Monday after the company published its Q1 FY 2026-27 (Q1 FY27) earnings call presentation. The SKF India share price rose 4.2% to Rs 1,639, with the bulk of the move coming after the detailed deck hit the exchanges, as investors reacted to a combination of robust profit growth, margin recovery and visible traction in new automotive business.

Why SKF India moved: profit and margins, not just revenue

The filing dated 17th August 2026 attaches the "Investors Earnings call" presentation for the quarter April–June 2026 (labelled 2Q26 in the slides). While headline revenue growth was already known from the earlier results filing, the presentation gives investors a clearer view of the quality of that growth and the margin trajectory — key reasons the stock appears to have re-rated intraday.

On the Summary P&L slide (page 11):

• Revenue from operations for the quarter ended June 2026 is shown at 5,878 million INR, up from 4,625 million INR in June 2025, a 27.1% year-on-year increase. Sequentially, revenue is down 1.1% from 5,945 million INR in March 2026.
• EBITDA has risen from 787 million INR in June 2025 and 694 million INR in March 2026 to 1,004 million INR in June 2026, a 27.6% YoY and 44.6% QoQ jump.
• Profit Before Exceptional Items & tax increased from 631 million INR in June 2025 and 534 million INR in March 2026 to 838 million INR in June 2026, a 32.8% YoY and 56.9% QoQ rise.
• Profit Before tax is also shown at 838 million INR, versus 631 million INR a year ago and 461 million INR in the March 2026 quarter, implying 32.8% YoY and 81.8% QoQ growth.

Crucially for the market, the presentation explicitly breaks out margins:

• EBITDA margin is shown at 17.1% for June 2026, compared with 17.0% in June 2025 and 11.7% in March 2026. The slide highlights a 7 bps improvement YoY and a 540 bps expansion QoQ.
• PBET Margin % (profit before exceptional items and tax) is 14.3% versus 13.6% a year ago and 9.0% in the previous quarter, an improvement of 61 bps YoY and 527 bps QoQ.
• PBT Margin % is also shown at 14.3%, up from 13.6% in June 2025 and 7.8% in March 2026, with the slide calling out a 61 bps YoY and 650 bps QoQ expansion.

The summary slide on page 8 reinforces this message, flagging:

• Revenue 5.9 BINR, ▲ 27.1% YoY, ▼ 1.1% QoQ
• EBITDA 17.1%, ▲ 7 bps YoY, ▲ 540 bps QoQ
• PBT% 14.3%, ▲ 61 bps YoY, ▲ 527 bps QoQ* (with a note that QoQ excludes exceptional items of 73 MINR in 1Q26)

This combination — strong top-line growth with even faster profit and margin expansion — helps explain why the stock outperformed the broader market after the deck was released.

Volume, price mix and segment mix: what the slides reveal

The Sales slide on page 9 breaks down how SKF India got there:

• Net sales grew from 4,514 MINR in 2Q25 to 5,512 MINR in 2Q26, a +22.8% YoY increase, driven by +1,029 MINR from volume and -31 MINR from price/mix.
• Sequentially, net sales slipped from 5,550 MINR in 1Q26 to 5,512 MINR in 2Q26, a -0.7% change, with +311 MINR from price/mix and -349 MINR from volume.
• The chart also shows the PBT margin line improving from 13.7% in 2Q25 to 14.3% in 2Q26, despite the slight QoQ dip in sales.

On page 10, the segment mix chart indicates how the business is positioned post demerger:

• In Q1 FY27 (labelled Q1FY27 on the slide), OE accounts for 62% of revenue, VA for 20%, Exports for 8% and SKF Industrial for 10%.
• The slide notes that the revenue figures do not include other operating income, aligning with the P&L disclosure.

For investors, this mix underscores SKF India’s profile as a predominantly automotive original equipment player with value-added and export exposure, consistent with its recently outlined pure-play automotive roadmap.

New PV wheel-end win: growth visibility in EV and localisation

Beyond the numbers, the presentation devotes a full slide (page 13) to a "New Business won: PV Wheel end June 26" success story:

• The customer is described as a "PV Customer" with an application in "Front & Rear Wheel".
• The slide explains that a large passenger vehicle manufacturer sought a "techno commercially robust and competitive wheel bearing solution" to maximise local content, minimise forex exposure and mitigate supply chain risks from geopolitical uncertainties.
• SKF, through "persistent customer engagement and value-based selling", offered a techno-commercial proposal with production from India footprint.

The benefits are spelled out:

• For SKF, this is the "First wheel bearing business win with this customer", seen as laying a "strong foundation for long term" and enhancing SKF as a "trusted partner for future platform opportunities".
• For the customer, SKF is positioned as a "Global supplier with Local footprint" providing a "strong value proposition on optimized friction to enhance EV battery range".
• The slide also notes "SKF’s > 95% localization", which "enables the customer to secure PLI incentives under ‘Make in India / Atmanirbhar Bharat’ initiatives".

This explicit link to EV efficiency, high localisation and Production-Linked Incentive (PLI) eligibility gives the market a tangible growth and margin narrative beyond the current quarter’s numbers, helping justify a stronger share-price response.

Sustainability and OEM engagement: supporting the re-rating

Several later slides highlight non-financial drivers that can influence valuation multiples:

• Page 16 notes that SKF’s automotive plants in Bangalore, Haridwar and Pune have achieved ">98% Renewable energy sourcing", with a commitment to "Net Zero in operations by 2030" and "throughout the value chain by 2050".
• Page 17 states that the Bangalore site has achieved "Water Positivity by 2 times" and the Haridwar site "Water Positivity by 2.57 times".
• Page 18 describes "SKF at Maruti Suzuki India Limited (MSIL) Tech Day", citing "400+ stakeholder engagements", showcasing solutions for ICE and EV, and "Strong interest in Low Friction Hub Bearing Unit and E-drive Conductive Brush Ring".

While these disclosures do not directly move quarterly earnings, they reinforce SKF India’s positioning in efficiency, sustainability and EV-ready technology — themes that often support premium valuations in auto components.

What the filing does not say

The presentation focuses on operational and financial performance but does not provide:

• Any explicit earnings or margin guidance for upcoming quarters.
• Quantification of the revenue or profit contribution expected from the new PV wheel-end business.
• Commentary on pricing power beyond the price/mix bridge, or on competitive intensity.

Given that, the 4.2% move in the SKF India share price to Rs 1,639 appears primarily linked to the confirmation of strong Q1 FY27 profitability, clear margin recovery versus the previous quarter, and the visibility on new, localised PV and EV-linked business wins, rather than to any fresh guidance surprise.