Timken India Limited Earnings Summary — Q4 FY2026
Timken India Reports Strong Volume Surge in Q4; Net Profit Jumps 187% QoQ on Margin Recovery
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 13.4% sequentially in Q1 FY2027.
- Revenue of ₹943 Cr is 14.7% higher year-on-year.
- Revenue has compounded at 24.0% annualised over the last 10 quarters.
- Net profit of ₹120 Cr is 10.4% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 32.8% annualised across the period.
- Operating margin stands at 18.8% in Q1 FY2027.
- Operating margin expanded by 96 bps year-on-year.
- PBT margin is 16.6%.
- Expense growth of 13.4% remained below revenue growth of 14.7%.
- Operating profit of ₹178 Cr is 20.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 3 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 64/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2019 | Q1 FY2019 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 943 | 1,090 | 780 | 786 | 822 | 951 | 683 | — | — | — |
| Expenses | Improving | 766 | 848 | 679 | 643 | 675 | 737 | 573 | — | — | — |
| Operating Profit | Volatile | 178 | 242 | 101 | 143 | 147 | 214 | 111 | — | — | — |
| Operating Margin | Improving | 18.8% | 22.2% | 12.9% | 18.2% | 17.9% | 22.5% | 16.2% | — | — | — |
| Other Income | Volatile | 11 | 1 | 7 | 11 | 11 | 14 | 15 | — | — | — |
| Interest | Softening | 1 | 1 | 1 | 1 | 1 | 1 | 1 | — | — | — |
| Depreciation | Improving | 31 | 30 | 29 | 27 | 21 | 21 | 21 | — | — | — |
| Profit Before Tax | Volatile | 156 | 212 | 78 | 126 | 136 | 206 | 103 | — | — | — |
| Tax | Volatile | 37 | 54 | 24 | 33 | 28 | 16 | 25 | — | — | — |
| Net Profit | Volatile | 120 | 158 | 55 | 94 | 108 | 190 | 78 | — | — | — |
| Net Margin | Volatile | 12.7% | 14.5% | 7.0% | 11.9% | 13.2% | 20.0% | 11.4% | — | — | — |
Key Takeaways
- Q4 FY2026 saw a significant sequential recovery with Sales rising 39.7% to ₹1,090 Cr compared to Q3.
- Operating margins rebounded sharply to 22% from a suppressed 13% in the previous quarter.
- Despite the strong Q4, annual Net Profit for FY26 closed at ₹415 Cr, a 10% decline from FY25's ₹462 Cr.
- DII holding has steadily increased from 26.8% in Mar 2025 to 30.63% in Mar 2026, while FIIs reduced stake.
- Capital expenditure remained high with Fixed Assets increasing from ₹810 Cr to ₹1,446 Cr YoY.
- Inventory days increased to 135 days (vs 124 days), indicating stock buildup for future demand or Bharuch plant scaling.
- The balance sheet remains robustly debt-free, maintaining the firm's high-quality financial status.
Management Guidance
Management focus remains on 'Industrial Motion' and premiumization in the aftermarket, with a clear strategic push toward increasing localization through the Bharuch plant expansion.
Sentiment Shift
Improving
While annual profits dipped, the sharp sequential recovery in Q4 revenue and margins suggests cyclical pressures are abating.
Outlook
The outlook remains constructive driven by the rail and industrial segments. The completion of major capital expenditure (CWIP reduced significantly while Fixed Assets grew) suggests the company is moving from a 'spend' phase to a 'utilize' phase.
From the Annual Report (Key Quotes)
“Timken has maintained a debt-free balance sheet while expanding its manufacturing footprint.”
“Vision remains centered on becoming the most technical bearing provider in the domestic market.”
“Management has successfully navigated supply chain volatility while maintaining market share in critical rail segments.”
Official Quarterly Documents
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This summary is AI-generated from Timken India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.