SKP Bearing Industries H1 profit falls 16% as revenue rises

SKP Bearing Industries Limited reported standalone profit of Rs 5.94 crore for the half year ended September 30, 2026, 16% below Rs 7.10 crore a year earlier, despite revenue from operations rising 9% to Rs 31.38 crore. Total expenses increased faster than total income, while other income declined and finance costs rose.

Why did SKP Bearing Industries' H1 profit fall despite higher revenue?

SKP Bearing Industries' profit for the half year ended September 30, 2026 declined because total expenses rose to Rs 24.80 crore from Rs 21.92 crore, exceeding the Rs 1.69 crore increase in total income. Revenue from operations increased by Rs 2.70 crore to Rs 31.38 crore, but profit before tax fell to Rs 8.36 crore from Rs 9.55 crore.

Other income declined to Rs 1.77 crore in the September 2026 half year from Rs 2.78 crore in the corresponding 2025 period. Finance costs increased to Rs 2.04 crore from Rs 1.57 crore, while deferred-tax expense was Rs 91.08 lakh, compared with a deferred-tax credit of Rs 7.36 lakh a year earlier.

How did SKP Bearing Industries perform in the September 2026 quarter?

SKP Bearing Industries reported revenue from operations of Rs 15.64 crore and profit of Rs 3.07 crore for the quarter ended September 30, 2026. Revenue was marginally below Rs 15.74 crore in the quarter ended June 30, 2026, while profit increased from Rs 2.86 crore.

Profit before tax rose to Rs 4.70 crore in the September quarter from Rs 3.65 crore in the June quarter as total expenses fell to Rs 12.12 crore from Rs 12.68 crore. Finance costs decreased to Rs 68.65 lakh from Rs 1.36 crore, while other income rose to Rs 1.18 crore from Rs 59.38 lakh.

The September-quarter figures include an adjustment for Rs 15.45 lakh of excess depreciation charged in a prior period. SKP Bearing Industries adjusted that amount against depreciation for the quarter ended September 30, 2026, when reported depreciation and amortisation expense was Rs 1.19 crore, compared with Rs 95.68 lakh in the June quarter.

What changed in SKP Bearing Industries' balance sheet?

SKP Bearing Industries' standalone total assets increased to Rs 134.58 crore at September 30, 2026 from Rs 128.73 crore at March 31, 2026. Shareholders' funds rose to Rs 83.24 crore from Rs 77.30 crore, as reserves and surplus increased to Rs 66.64 crore from Rs 60.70 crore; share capital remained Rs 16.60 crore.

Long-term borrowings rose to Rs 29.57 crore at September 30 from Rs 28.05 crore at March 31, while short-term borrowings edged down to Rs 13.20 crore from Rs 13.26 crore. Property, plant and equipment increased to Rs 63.95 crore from Rs 59.92 crore, while capital work-in-progress declined to Rs 29.66 lakh from Rs 1.67 crore.

Inventory increased to Rs 9.16 crore from Rs 6.35 crore over the six months, whereas trade receivables declined to Rs 18.60 crore from Rs 28.01 crore. Short-term loans and advances rose to Rs 4.04 crore from Rs 2.53 crore, other current assets increased to Rs 7.17 crore from Rs 5.24 crore, and cash and cash equivalents fell to Rs 1.51 lakh from Rs 11.43 lakh.

What does SKP Bearing Industries' cash flow show?

SKP Bearing Industries recorded net operating cash flow of Rs 10.55 crore for the half year ended September 30, 2026, compared with Rs 6.73 crore for the year ended March 31, 2026. The half-year figure followed profit before tax and extraordinary items of Rs 8.36 crore and income taxes paid of Rs 1.94 crore.

The cash-flow statement shows a Rs 9.24 crore working-capital contribution from the decrease in trade receivables, broadly consistent with the Rs 9.41 crore reduction in the balance-sheet receivables balance. Inventory absorbed Rs 2.81 crore of cash and other current assets absorbed Rs 1.92 crore, resulting in total working-capital adjustments of Rs 97.65 lakh.

Investing activities used Rs 10.06 crore during the half year, including Rs 4.80 crore for purchases of property, plant and equipment and Rs 6.45 crore for cash advances and loans made to other parties. Financing activities used Rs 58.95 lakh because Rs 2.04 crore of interest paid exceeded Rs 1.45 crore of borrowing proceeds, leaving cash and cash equivalents at Rs 1.51 lakh on September 30, 2026.

What is the status of SKP Bearing Industries' export receivables?

SKP Bearing Industries said trade receivables at September 30, 2026 included certain export receivables outstanding beyond timelines stipulated under the Foreign Exchange Management Act, or FEMA. The filing did not quantify those export receivables within the Rs 18.60 crore standalone trade-receivables balance.

As of November 4, 2026, SKP Bearing Industries said no regulatory scrutiny or penal action had been initiated by the Reserve Bank of India, an authorised dealer bank, or goods and services tax authorities. Management said the potential financial impact was unascertainable but expected to be immaterial, and no provision was charged for the matter.

The statutory auditors issued an unmodified conclusion on the unaudited standalone results approved by the board on November 4, 2026. SKP Bearing Industries also reported no pending investor complaints as of September 30, 2026, and said its National Stock Exchange SME-platform listing requires half-yearly results, while quarterly results are published voluntarily.

Conclusion

SKP Bearing Industries increased standalone revenue in the half year ended September 30, 2026, but the growth did not translate into higher profit. A Rs 2.88 crore increase in expenses, lower other income and higher finance costs reduced profit to Rs 5.94 crore, while operating cash flow of Rs 10.55 crore reflected a reduction in receivables alongside cash absorbed by inventory and other current assets.

The disclosed unresolved matter is the export receivables outstanding beyond FEMA timelines, for which management reported no action as of November 4, 2026 and no provision. Readers can also watch future half-yearly results required under the SME listing framework and any voluntary quarterly disclosures for changes in revenue, finance costs, working capital and the receivables matter.