SKP Bearing posts Rs 56.79 lakh H1 consolidated loss

SKP Bearing Industries Limited reported a consolidated loss of Rs 56.79 lakh for the half year ended September 30, 2026, compared with a Rs 3.3544 crore profit a year earlier, despite revenue from operations increasing to Rs 43.04 crore. Profit before tax fell to Rs 1.851 crore from Rs 5.799 crore, while tax expense exceeded that reduced pre-tax profit.

Why did SKP Bearing report a consolidated H1 loss?

SKP Bearing reported the loss because its Rs 1.851 crore profit before tax for the half year ended September 30, 2026 was followed by tax expense of Rs 2.4189 crore. The corresponding half-year pre-tax profit was Rs 5.799 crore, and the group had then reported profit after tax of Rs 3.3544 crore.

The H1 tax charge comprised current tax of Rs 1.6353 crore and deferred tax of Rs 91.08 lakh, partly offset by a prior-period tax credit of Rs 12.72 lakh. Revenue from operations rose by Rs 3.044 crore to Rs 43.04 crore from Rs 39.9596 crore, but the increase did not offset higher costs and lower other income.

Total income increased to Rs 44.5365 crore from Rs 42.6107 crore, as other income declined to Rs 1.4965 crore from Rs 2.6511 crore. Total expenses rose to Rs 42.6855 crore from Rs 36.8117 crore, an increase of Rs 5.8738 crore that was larger than the increase in total income.

The cost composition also changed between the two half years. Material consumed was Rs 19.3335 crore in H1 2026, compared with Rs 7.9718 crore a year earlier, while purchases of stock in trade declined to Rs 92.58 lakh from Rs 8.1695 crore. The inventory line was a Rs 27.92 lakh expense in H1 2026, against a Rs 2.8503 crore credit in H1 2025.

How did SKP Bearing perform in the September 2026 quarter?

SKP Bearing recorded a consolidated loss of Rs 60.77 lakh in the quarter ended September 30, 2026, after reporting a Rs 3.98 lakh profit in the June 2026 quarter. Revenue from operations declined sequentially to Rs 20.9282 crore from Rs 22.1118 crore, while profit before tax increased to Rs 1.0202 crore from Rs 83.08 lakh.

The September-quarter tax charge was Rs 1.6279 crore, exceeding the period’s pre-tax profit. It included current tax of Rs 87.14 lakh, deferred tax of Rs 75.53 lakh and prior-period tax of Rs 12,000, whereas the June quarter had a Rs 12.84 lakh prior-period tax credit. Basic and diluted earnings per share were both a loss of Rs 0.36 in September, compared with earnings of Rs 0.02 in June.

Material consumption rose to Rs 12.9756 crore in the September quarter from Rs 6.3579 crore in June. In contrast, other expenses fell to Rs 40.37 lakh from Rs 7.2748 crore, and finance costs declined to Rs 68.64 lakh from Rs 1.3568 crore. Total expenses were Rs 20.5763 crore, compared with Rs 22.1092 crore in the preceding quarter.

SKP Bearing says it is required to submit financial results half yearly because it is listed on the National Stock Exchange SME platform. The September and June quarterly results were published voluntarily, according to the notes accompanying the consolidated statement.

What did SKP Bearing disclose about its France subsidiary?

SKP Bearing disclosed that its wholly owned subsidiary had management-certified interim revenue of Rs 6.1902 crore and a net loss after tax of Rs 4.0521 crore. The group’s September-quarter consolidated loss of Rs 60.77 lakh was smaller than the subsidiary loss, but the filing does not provide a reconciliation from the subsidiary result to the consolidated result after inter-company adjustments.

Note 3 to the consolidated results assigns the subsidiary figures to the quarter ended June 30, 2026, before inter-company adjustments. However, the consolidated limited-review report assigns the same Rs 6.1902 crore revenue and Rs 4.0521 crore loss to the quarter ended September 30, 2026. The filing therefore gives conflicting period labels for those subsidiary amounts.

Jain P. C. & Associates said the subsidiary’s interim financial information had not been reviewed by its auditors and was approved and furnished by management. The auditor described that information as material to the group and said it could not determine what adjustments might have been necessary if the subsidiary information had undergone a limited review.

How did SKP Bearing's balance sheet and cash flow change?

SKP Bearing’s consolidated total assets were Rs 110.2705 crore at September 30, 2026, down from Rs 111.4286 crore at March 31, 2026. Shareholders’ funds declined to Rs 46.8886 crore from Rs 47.1589 crore, as reserves and surplus fell to Rs 30.2886 crore from Rs 30.5589 crore while share capital remained Rs 16.60 crore.

Non-current borrowings increased to Rs 29.5902 crore from Rs 28.0506 crore, while short-term borrowings edged down to Rs 13.2016 crore from Rs 13.2648 crore. Property, plant and equipment increased to Rs 65.6351 crore from Rs 61.7651 crore, while capital work-in-progress declined to Rs 29.66 lakh from Rs 1.6667 crore.

The cash-flow statement shows net cash from operating activities of Rs 4.725 crore for the six months to September 30, 2026, compared with Rs 93.12 lakh for the year ended March 31, 2026. Investing activities used Rs 4.7725 crore, including Rs 4.7717 crore spent on property, plant and equipment, while financing activities used Rs 56.68 lakh.

Cash and cash equivalents were Rs 2.11 lakh at September 30, down from Rs 33.77 lakh at March 31. The statement records a Rs 31.66 lakh net decrease in cash and cash equivalents, after a Rs 29.77 lakh positive effect from exchange-rate changes.

What review status applies to SKP Bearing's consolidated results?

SKP Bearing’s consolidated results for the half year ended September 30, 2026 are unaudited and were approved by the board on November 4, 2026 after review and recommendation by the audit committee. The filing states that the group’s financial results were prepared under accounting standards notified under Section 133 of the Companies Act, 2013.

Jain P. C. & Associates performed a limited review of the consolidated financial results for the quarter ended September 30, 2026 rather than a full audit. Except for the possible effects of the matter concerning the unreviewed subsidiary information, the auditor said nothing had come to its attention indicating that the statement failed to disclose information required under the Securities and Exchange Board of India listing regulations.

The auditor’s conclusion did not provide an audit opinion because a limited review has a narrower scope than an audit. The review report also says the consolidated statement includes one wholly owned subsidiary, whose management-certified results were material to the group.

Conclusion

SKP Bearing’s H1 outcome shows a divergence between revenue and consolidated earnings: revenue from operations rose to Rs 43.04 crore, but pre-tax profit declined by Rs 3.948 crore and tax expense of Rs 2.4189 crore resulted in a Rs 56.79 lakh loss. The shift in material consumption, stock purchases and inventory movement also coincided with total expenses rising faster than total income.

The next required reporting milestone is a half-yearly financial result, although SKP Bearing has also voluntarily published quarterly numbers. Investors will also watch for clarification of whether the subsidiary’s Rs 6.1902 crore revenue and Rs 4.0521 crore loss relate to June or September 2026, and whether audited or reviewed subsidiary information is subsequently filed.