What is SKF India Industrial's profit margin target?

SKF India Industrial aims to increase its EBITDA margins from about 13% to 17-19% within the next three to four years.

How much capital is SKF India Industrial investing?

SKF India Industrial plans a capital expenditure of ₹800-950 crore over the next few years.

When will the new SKF Industrial Pune plant be ready?

The new, highly automated manufacturing facility in Pune is scheduled to be operational by 2028.

Home / Business and Economy / SKF India Industrial Eyes Profit Surge Post-Demerger

SKF India Industrial Eyes Profit Surge Post-Demerger

5 Dec

•

Summary

SKF Industrial aims for 17-19% EBITDA margins in 3-4 years.
A significant capital expenditure of ₹800-950 crore is planned.
The company recently listed post-demerger from SKF India.

SKF India Industrial Eyes Profit Surge Post-Demerger

SKF India Industrial is set to experience a substantial increase in profitability, with projected EBITDA margins rising from approximately 13% to 17-19% over the next three to four years. This strategic uplift is underpinned by a significant capital expenditure program amounting to ₹800-950 crore, positioning it as a key value driver after its recent demerger and listing. The company anticipates initial margin growth into the mid-teens, gradually climbing to its target range, with potential temporary stabilization due to new investments.

The recent demerger has resulted in two distinct business entities: SKF Automotive, focusing on EVs and safety technologies with planned investments of ₹410-510 crore by 2030, and SKF Industrial. The latter will concentrate on sectors like manufacturing, railways, and renewables, backed by its larger investment plan. This strategic division aims to capitalize on India's robust infrastructure and manufacturing growth.