Shares of SKF India declined 1.59% to Rs 1,672.30 on Friday even after the company reported strong FY26 sales growth and outlined long-term expansion plans during its post-results conference call.
The stock came under pressure after management indicated that Q4 FY26 margins were impacted by demerger-related expenses and the absence of one-off gains recorded in the previous quarter. Investors also appeared cautious despite the company reiterating confidence in long-term profitability recovery and growth visibility.
SKF India reported 14.8% year-on-year sales growth in Q4 FY26, while sequential sales growth stood at 3%. For the full financial year, sales increased 12.8%, supported by strong OEM demand, industrial recovery, and continued momentum in EV-linked product categories.
During the concall, management guided for a sustainable profit before tax (PBT) margin of 11% to 12% over the near term and projected revenue CAGR of 6% to 8% going forward.
The company also announced a planned capital expenditure of around Rs 500 crore between FY26 and FY28, with nearly Rs 200 crore expected to be invested during FY26-27. The investments will largely focus on capacity expansion, energy efficiency initiatives, premiumisation, and strengthening EV-focused manufacturing capabilities.
Management stated that margin recovery remains a key priority and highlighted that operational improvements and strategic investments are expected to support sustainable long-term growth.
Despite the broader growth commentary, the market reaction remained muted as investors assessed near-term margin pressures and the impact of ongoing investments on profitability.
SKF India shares traded in the range of Rs 1,667.40 to Rs 1,714.70 during Friday’s session against the previous close of Rs 1,699.40. The company’s market capitalisation stood at approximately Rs 82,700 crore.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.