SKF India shares surged nearly 9% after reporting a 20% YoY rise in Q4FY25 profit to ₹275.65 crore and announcing a ₹14.5 per share dividend.
Shares of SKF India soared nearly 9% on Friday following the announcement of robust financial results for the fourth quarter of FY25 and a final dividend declaration, signaling renewed investor confidence in the engineering giant.
Strong Q4FY25 Performance
SKF India, a major player in the bearings and industrial engineering sector, reported a net profit of ₹275.65 crore, registering a 20% year-on-year (YoY) growth compared to ₹230 crore in the corresponding quarter last year. The company’s revenue from operations stood at ₹1,213.4 crore, slightly up from ₹1,203.4 crore in Q4FY24.
This strong bottom-line performance came on the back of effective cost management. Total expenses dropped to ₹950.8 crore from ₹1,009.16 crore YoY. This cost efficiency translated into a significant boost in operating performance, with EBITDA surging 33% YoY to ₹284 crore, up from ₹213 crore. On a sequential basis, EBITDA more than doubled from ₹121 crore in Q3FY25.
Margins on the Rise
SKF India recorded a gross margin of 49%, up from 41% in Q4FY24 and a remarkable improvement over the 33% margin in the previous quarter. This reflects the company’s focus on premium product offerings, operational efficiency, and cost optimization.
₹14.5 Dividend Announced
In a move welcomed by shareholders, the company’s board recommended a final dividend of ₹14.5 per equity share for the financial year ending March 31, 2025. This announcement underlines SKF India’s commitment to rewarding investors and maintaining a shareholder-friendly policy.
Stock Price Momentum
The stock rallied to an intra-day high of ₹4,685.90, buoyed by strong earnings and the dividend declaration. Despite the gains, SKF India shares remain 36% below their 52-week high of ₹7,349, touched in June 2024. However, the stock has recovered 32% from its 52-week low of ₹3,544 in February 2025.
After a challenging period of five consecutive monthly declines from October 2024 to February 2025, SKF India has shown signs of recovery — gaining 4.3% in March, 1% in April, and now 18% in May. Despite the recent uptrend, the stock is still down 19% over the past year, leaving room for further potential upside.
About SKF India
Founded in 1923, SKF India has evolved from being a traditional bearing manufacturer to a comprehensive engineering solutions provider. The company operates across five core platforms:
- Bearings and units
- Seals
- Lubrication systems
- Condition monitoring
- Maintenance services
With six manufacturing facilities, 12 regional offices, over 450 distributors, and more than 1,700 employees, SKF India supports sectors such as automotive, industrial machinery, and energy in reducing friction, improving performance, and extending equipment life.
With strong fundamentals, strategic product positioning, and a continued focus on profitability and operational excellence, SKF India is poised to regain lost market value. Investors and analysts will be watching the company’s performance in upcoming quarters to assess whether this positive trend is sustainable.
