SKF India (Industrial) cash falls Rs 250.79 crore in H1

SKF India (Industrial) Limited’s cash and cash equivalents fell Rs 250.79 crore in the six months ended September 30, 2026, to Rs 318.38 crore, as Rs 43.15 crore of operating cash flow did not cover Rs 162.04 crore of capital expenditure, Rs 148.35 crore of dividends and other financing payments.

What caused SKF India (Industrial)’s cash balance to fall?

SKF India (Industrial)’s cash balance fell because operating inflows were lower than investing and financing outflows in the six months ended September 30, 2026. Cash and cash equivalents declined from Rs 569.17 crore at March 31, 2026, to Rs 318.38 crore, while the cash-flow statement reported Rs 43.15 crore of net operating cash flow after exceptional items.

SKF India (Industrial) recorded net investing cash outflow of Rs 142.63 crore and financing cash outflow of Rs 151.31 crore during the period. Payments for property, plant and equipment, including capital work-in-progress, were Rs 162.04 crore, while the company paid Rs 148.35 crore in dividends.

The operating result before working-capital changes was Rs 220.21 crore, compared with Rs 223.78 crore in the six months ended September 30, 2025. Cash generated from operations before exceptional items declined to Rs 104.54 crore from Rs 263.96 crore, and direct taxes paid were Rs 61.39 crore, resulting in operating cash flow before exceptional items of Rs 43.15 crore versus Rs 167.77 crore a year earlier.

How did working capital affect SKF India (Industrial)’s cash flow?

Working-capital movements reduced SKF India (Industrial)’s cash generation in the six-month period, principally through a Rs 136.86 crore increase in inventories, a Rs 62.18 crore decrease in trade payables and a Rs 62.12 crore decrease in other liabilities. These movements occurred before the Rs 61.39 crore of direct taxes paid.

The outflows were partly offset by a Rs 106.15 crore decrease in trade receivables and a Rs 48.69 crore increase in provisions. Current and non-current assets supplied Rs 3.88 crore of cash, whereas current and non-current financial assets absorbed Rs 13.27 crore, according to the cash-flow statement.

The pattern differed from the comparative period. In the six months ended September 30, 2025, trade payables contributed Rs 142.72 crore and other liabilities contributed Rs 97.44 crore, while inventories absorbed Rs 22.36 crore and trade receivables absorbed Rs 96.18 crore. Cash generated from operations before exceptional items consequently fell Rs 159.42 crore year on year despite the Rs 3.57 crore decline in operating profit before working-capital changes.

SKF India (Industrial)’s September balance sheet reflects the inventory movement, with inventories rising to Rs 672.64 crore from Rs 535.78 crore at March 31, 2026. Trade receivables fell to Rs 727.89 crore from Rs 828.02 crore, consistent with the cash-flow statement’s receivables inflow. The company identifies manufacturing bearings and related components as its single business segment.

How much did SKF India (Industrial) spend on capital expenditure and dividends?

SKF India (Industrial) paid Rs 162.04 crore for property, plant and equipment, including capital work-in-progress, in the six months ended September 30, 2026. The expenditure was Rs 61.99 crore higher than the Rs 100.05 crore paid in the comparable six months of 2025.

Proceeds from the sale of property, plant and equipment were Rs 46 lakh, while interest received was Rs 16.73 crore and rental income was Rs 2.22 crore. These receipts left net investing cash outflow at Rs 142.63 crore; the filing does not split the capital-expenditure payment among individual asset categories.

SKF India (Industrial) also paid Rs 148.35 crore in dividends, Rs 17.8 lakh in lease-liability repayments and Rs 11.8 lakh in finance costs. In the six months ended September 30, 2025, the reported financing outflow was Rs 7.9 lakh, comprising Rs 6.1 lakh of lease-liability repayment and Rs 1.8 lakh of finance costs, with no dividend payment reported.

Property, plant and equipment rose to Rs 257.69 crore at September 30 from Rs 184.18 crore at March 31. Capital work-in-progress fell to Rs 89.84 crore from Rs 134.27 crore, while right-of-use assets increased to Rs 24.76 crore from Rs 3.98 crore.

What does SKF India (Industrial)’s September balance sheet show?

SKF India (Industrial) reported total assets of Rs 2,543.09 crore at September 30, 2026, down Rs 131.41 crore from Rs 2,674.50 crore at March 31, 2026. Total current assets declined to Rs 1,865.47 crore from Rs 2,078.20 crore, as the Rs 250.79 crore decline in cash outweighed the Rs 136.86 crore inventory increase.

Non-current assets increased to Rs 677.62 crore from Rs 596.30 crore. Alongside Rs 318.38 crore of cash and cash equivalents, SKF India (Industrial) reported Rs 73 lakh of bank balances other than cash and cash equivalents at September 30, compared with no such balance reported at March 31.

Total equity rose Rs 17.02 crore to Rs 1,493.87 crore despite the Rs 148.35 crore dividend payment. Total liabilities fell to Rs 1,049.22 crore from Rs 1,197.65 crore, with current liabilities declining Rs 173.39 crore to Rs 1,016.56 crore; trade payables other than micro and small enterprises decreased to Rs 667.56 crore from Rs 727.15 crore.

SKF India (Industrial) became the resulting company under a demerger scheme effective October 1, 2025. The company says the September 2025 comparative figures were extracted by management from SKF India Limited’s financial information for the industrial undertaking, and its statutory auditor said those figures were not audited or reviewed by SKF India (Industrial)’s statutory auditors; the September 2026 results received an unmodified review conclusion.

Conclusion

SKF India (Industrial)’s Rs 250.79 crore cash reduction combined lower operating cash conversion with higher capital spending and a dividend payment. Operating profit before working-capital changes was broadly stable at Rs 220.21 crore, but an inventory build-up and lower cash contributions from trade payables and other liabilities reduced operating cash flow to Rs 43.15 crore.

The next results will indicate whether the Rs 672.64 crore inventory balance converts into cash and whether payments for property, plant and equipment remain above the Rs 100.05 crore recorded in the comparable 2025 period. SKF India (Industrial) also says it continues to monitor final Central and State rules and government clarifications on the Labour Codes for any required change in employee-benefit liability measurement.