SKP Bearing Industries Limited said it is expanding roller capacity and ramping up utilisation at its ball manufacturing plant while targeting consolidated revenue of INR 1 billion for the financial year. The company also expects its France subsidiary to turn profitable in calendar year 2026 as customer validations progress and volumes recover.
The company reported that standalone revenue increased 41 percent from the second quarter to the third quarter, while consolidated revenue, including its India and France entities, rose 38.9 percent over the same period. EBITDA margins improved to 9.5 percent during the quarter, according to management commentary on the call. Export contribution increased to 5 percent of overall revenue from 2 percent in the previous year.
Speaking during the Q3 and nine months FY26 post-earnings conference call on 19 February 2026, management said roller plant capacity has increased after space constraints were removed following the relocation of the ball plant. The expansion is being implemented in stages to address bottlenecks, with capacity additions aligned to a target of 200 tons per month.
“We are adding continuously. So some things are going to be added in this particular quarter. Something is going to be added in next quarter,” said Shrinand Palshikar, Chairman and Managing Director of SKP Bearing Industries Limited. “We believe in let it go slow, but it should be steady and it should be very long term,” he added.
The ball plant, referred to as Plant 3, has full installed capacity in place, with utilisation currently around 23 percent. Commercial dispatches have begun to new customers, although ramp-up has been slower than initially planned due to delays in the implementation of the Quality Control Order (QCO).
“We have already started dispatches and it’s in the ramp up part. So usually in our industry, ramping up process takes another one year,” said Shripada Patil, Chief Financial Officer of SKP Bearing Industries Limited.
Exports are expected to increase by an additional 1 to 2 percentage points in the current quarter, management said, as the company targets multinational clients with manufacturing bases across continents, leveraging its presence in India and France for just-in-time supply.
The France subsidiary, acquired in February 2024, remains in a recovery phase after revenue declined following the change in legal entity and subsequent customer revalidation processes. Prior to acquisition, the French business generated revenue of approximately EUR 8 million to EUR 8.5 million in 2023. Management said revenue fell to roughly 25 percent of that level post-acquisition as customers initiated financial and technical audits.
“In 26 calendar year we will be green. That’s very clear,” said Palshikar.
The company aims first to restore post-acquisition revenue levels and subsequently target earlier levels of EUR 15 million to EUR 16 million. Employee headcount in France has been reduced from 52 at the time of acquisition to 31 to align costs with current volumes, with one-time retirement-related and economic dismissal costs affecting recent quarterly results.
In India, SKP operates an end-to-end manufacturing model covering raw material specification, processing, heat treatment and finishing. The company supplies products on a business-to-business basis to Tier 1 and Tier 2 bearing manufacturers and also serves defence and aerospace segments with high-precision applications.
SKP Bearing Industries Limited is an India-based manufacturer of needle rollers, cylindrical rollers, precision pins and balls for automotive and industrial applications, with manufacturing facilities in India and a subsidiary in France.
