SKF India Limited
SKF India Ltd., a subsidiary of Sweden-based AB SKF, is a leading provider of bearings, seals, lubrication systems, and mechatronics solutions. Established in 1961, with operations dating back to 1923, it serves key sectors like automotive, industrial, and aerospace. With multiple manufacturing plants and a wide distribution network across India, SKF India delivers high-performance, reliable engineering solutions backed by advanced technology and a strong focus on sustainability and innovation.
Key Business Segments
SKF India derives its revenue from a mix of industrial and automotive segments. The industrial segment includes bearings and related products for various machinery and equipment. The automotive segment serves both original equipment manufacturers and the aftermarket. Additionally, the company offers services and solutions such as lubrication systems and condition monitoring.
Revenue Breakup FY24:
- Manufacturing: 56%
- Trading: 40%
- Sale of Services & Other: 4%
Shareholding Pattern (March 2025)
Financial Summary
| Particulars | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
| Sales | 2,671 | 3,666 | 4,305 | 4,570 | 4,920 |
| Sales Growth % | -6.01% | 37.26% | 17.43% | 6.16% | 7.65% |
| Expenses | 2,251 | 3,110 | 3,556 | 3,853 | 4,174 |
| Operating Profit | 420 | 556 | 749 | 718 | 745 |
| OPM % | 16% | 15% | 17% | 16% | 15% |
| Net Profit | 298 | 395 | 525 | 552 | 566 |
| EPS in Rs | 60.22 | 79.92 | 106.15 | 111.61 | 114.45 |
Final Outlook
SKF Ltd – Fundamental Outlook
Q2 2025 key metrics: Net sales of MSEK 23,166; organic growth –0.2%; adjusted operating profit MSEK 3,090; adjusted operating margin rose to 13.3% (up from 13.0%).
Cash flow strength: Operating cash flow increased to MSEK 2,817 (up from MSEK 2,152 in Q2 2024), driven by improved working capital management.
Segment performance: Industrial margins reached 16.6% (versus 16.3%), showing stability across regions. Automotive segment declined due to weak global demand except in EV; margin slipped to 5.1%
Aerospace growth: Achieved 12% annual revenue growth and an 8‑point margin improvement since 2022, underpinned by portfolio prioritization and pricing initiatives.
Restructuring actions: Rightsizing program to cut ~1,700 positions (net ~1,200) primarily in Europe; projected annual cost savings ~BSEK 2 by 2027; restructuring charges (IAC) of BSEK 1.8 recognized in Q2
Outlook:
Q3 2025: expect flat organic sales year-over-year amid uncertain macro climate.
Currency headwind: operating profit expected to be impacted by ~MSEK 500 vs. Q3 2024.
Full-year 2025 cap‑ex (ex‑automotive separation) around BSEK 4.5; tax rate ~26%.
The SKF demonstrates margin resilience supported by strong cost control, cash generation and selective segment strength. Continued restructuring and aerospace momentum offset challenges in the automotive business. Looking ahead, currency volatility and global demand softness pose risks to flat top-line performance, but ongoing savings initiatives support long-term value creation.
Let me know if you’d like a breakdown by region, comparison to competitors, or historical context.
Cash flow strength: Operating cash flow increased to MSEK 2,817 (up from MSEK 2,152 in Q2 2024), driven by improved working capital management.
Segment performance: Industrial margins reached 16.6% (versus 16.3%), showing stability across regions. Automotive segment declined due to weak global demand except in EV; margin slipped to 5.1%
Aerospace growth: Achieved 12% annual revenue growth and an 8‑point margin improvement since 2022, underpinned by portfolio prioritization and pricing initiatives.
Restructuring actions: Rightsizing program to cut ~1,700 positions (net ~1,200) primarily in Europe; projected annual cost savings ~BSEK 2 by 2027; restructuring charges (IAC) of BSEK 1.8 recognized in Q2
The SKF demonstrates margin resilience supported by strong cost control, cash generation and selective segment strength. Continued restructuring and aerospace momentum offset challenges in the automotive business. Looking ahead, currency volatility and global demand softness pose risks to flat top-line performance, but ongoing savings initiatives support long-term value creation.
