Synopsis:
SKF India Limited’s shares are in focus today as it fell by 50% in today’s trading session.
A small-cap Company that is a leading supplier of products, solutions & services within rolling bearing, seals, and lubrication systems, is in the spotlight today after its shares fell over 50 percent in today’s trading session.
With the market capitalization of Rs. 11,192.26 crore, the shares of SKF India Limited is trading at Rs. 2,263.90, down by 54.79 percent from its previous day’s close price of Rs. 5,008.40 per equity share.
What’s the News?
SKF India’s stock fell over 50 percent today as it went ex-date for its demerger, which reflects a structural adjustment rather than any business issues. The company has split into two entities, Automotive and Industrial, and shareholders will receive one share of the new Industrial company for each SKF share they hold.
The stock decline represents the transfer of value to the newly created Industrial company, which will be listed separately soon, generally it takes 45-60 days from the date of filling necessary applications with stock exchanges.
The demerger is intended to create two focused businesses, providing clearer strategic direction, more efficient capital allocation, and enhanced shareholder value. Each entity can operate independently, pursue growth opportunities in its segment, and showcase its performance distinctly, allowing investors to evaluate and invest in the automotive mobility and industrial businesses more transparently.
The stock is currently trading at Rs. 2,263.90, down from Rs. 5,008.40 before the demerger, reflecting the division of the company into separate entities.In September 2025, ICICI Direct Research reaffirmed a ‘buy’ rating on SKF India, viewing margin pressures from the demerger as temporary and noting that the industrial segment grew 13 percent YoY in Q1FY26.
They expect steady growth supported by a strong capex program through FY27‑FY29. B&K Securities anticipates 5 percent YoY revenue growth in the bearings sector with margins of 15‑16 percent, though Q1 and Q2 may see pressure due to transfer pricing.
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About the Company
SKF India Limited, headquartered in Pune and founded in 1923, is a leading provider of bearings, engineering services, and rotating equipment solutions both in India and internationally.
The company offers a wide range of products, including rolling bearings (ball and roller), mounted bearings and housings, super-precision bearings, slewing and plain bearings, magnetic bearings, and thin section bearings.
It also supplies industrial and automotive seals, covering applications in power transmission, hydraulics, fluid handling, driveline, engine, suspension, eDrive units, and two-wheelers.
In addition, SKF India provides comprehensive maintenance and lubrication solutions, including lubricants, manual and automatic lubrication systems, hydraulic and mechanical tools, heaters, and alignment tools.
The company also delivers condition monitoring systems, power transmission solutions such as belts, pulleys, chains, couplings, and precision test and measuring equipment, including waviness and roundness analyzers, noise and vibration testers, and grease test rigs. These offerings position SKF India as a full-service solutions provider in industrial and automotive sectors.
A return on equity (ROE) of about 21.4 percent and a return on capital employed (ROCE) of about 28.8 percent demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 21.6x lower as compared to its industry P/E 49.2x.
In Q1FY26, the company reported revenue of Rs. 1,283 cr, up 6.4 percent YoY from Rs. 1,206 cr in Q1FY25 and 5.8 percent QoQ from Rs. 1,213 cr in Q4FY25. Net profit declined to Rs. 119 cr, down 25.2 percent YoY from Rs. 159 cr and 41.4 percent QoQ from Rs. 203 cr, reflecting margin pressures despite revenue growth.
Written by Akshay Sanghavi
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