Are SKF India Ltd latest results good or bad?

The latest financial results for SKF India Ltd for the quarter ended September 2025 present a mixed picture. The company reported net sales of ₹1,309.06 crores, reflecting a 2.02% growth compared to the previous quarter. This marks the highest quarterly revenue on record for SKF India, with a year-on-year revenue increase of 5.21%, indicating some resilience in its business operations despite the challenging industrial environment. However, the company's net profit saw a decline of 10.76% from the previous quarter, amounting to ₹105.49 crores. This decline is attributed to a contraction in operating margins, which fell to 12.66% from 13.04% in the prior quarter. The operating margin has experienced significant volatility over recent quarters, and the current margin remains substantially below the peak of 23.45% achieved in the fourth quarter of FY25. Despite these challenges, SKF India continues to exhibit strong capital efficiency, with a return on equity (ROE) of 20.18%, which is well above the typical benchmark for quality franchises. The company maintains a debt-free balance sheet, providing it with financial flexibility. However, concerns have emerged regarding operating cash flow, which significantly declined to ₹203 crores in FY25 from ₹624 crores in FY24, raising questions about working capital management and the sustainability of reported profits. The company also experienced a revision in its evaluation, reflecting the complexities of its operational performance amidst these financial results. Overall, while SKF India demonstrates strong revenue growth and capital efficiency, the pressures on margins and cash flow present challenges that the management will need to address moving forward.