Economic Overview
Global Economic Overview
The global economy is entering a more uncertain phase, with growth moderating below earlier expectations. According to the International Monetary Fund (IMF) April 2026 update, global GDP growth is now projected at 3.1% in 2026 and 3.2% in 2027, reflecting a softer trajectory compared to prior estimates. This moderation comes despite the resilience shown in recent years and signals a transition towards a slower, more constrained growth environment.
This shift is being shaped by a combination of factors. Escalating geopolitical disruptions, particularly the conflict in the Middle East, rising trade fragmentation, and tighter financial conditions are weighing on global activity. Commodity price volatility and firming inflation expectations are adding further pressure, particularly for emerging economies dependent on imports.
At the same time, structural drivers continue to support the global economy. Investment in productivity-enhancing technologies, especially artificial intelligence and digitalisation, remains a key medium-term growth lever. However, the pace and distribution of these gains remain uneven across regions and sectors.
Growth trends continue to diverge across economies:
• Advanced economies are expected to grow at 1.8% in 2026 and 1.7% in 2027, supported by stabilising inflation and improving real incomes, but constrained by high interest rates, fiscal consolidation, and demographic pressures.
Emerging markets and developing economies (EMDEs) are projected to grow at 3.9% in 2026, before recovering to 4.2% in 2027, remaining the primary engines of global growth. However, they face heightened vulnerability to external shocks, capital flow volatility, and commodity price movements.
Notably, growth pressures are expected to be more pronounced in EMDEs in the near term, particularly in commodity-importing nations with limited policy buffers.
Inflation and Financial Conditions
The global disinflation trend is expected to pause temporarily. Inflation may rise modestly in 2026 before resuming its downward trajectory in 2027, driven by commodity price movements and geopolitical developments.
Financial conditions are gradually easing but remain tighter than pre-pandemic levels. Elevated borrowing costs continue to influence investment decisions, corporate financing, and consumer demand across markets.
Global trade is undergoing structural realignment.
While supply chains have become more diversified, fragmentation and policy-driven shifts continue to reshape trade flows.
Geopolitical developments are emerging as a central risk factor. Conflicts and strategic tensions are impacting energy markets, logistics networks, and technology ecosystems. Rising defence spending is also creating macroeconomic tradeoffs, supporting short-term activity but adding to fiscal pressures and public debt over the medium term.
Outlook
The global outlook remains stable but tilted to the downside, with growth moderating, inflation remaining uneven, and policy flexibility constrained by elevated public debt and limited fiscal space. Prolonged geopolitical conflicts, increasing trade fragmentation, slower-than- expected productivity gains from emerging technologies such as artificial intelligence, and the possibility of tightening global financial conditions continue to pose key risks to the economic environment. At the same time, there is potential for improvement if technological adoption accelerates or if trade tensions ease in a sustained manner. Overall, the operating landscape is characterised by moderate growth, heightened uncertainty, and ongoing structural transitions, requiring businesses to remain focused on resilience, disciplined capital allocation, and the ability to respond effectively to external disruptions.
Indian Economic Overview
In FY 2025-26, India sustained strong macroeconomic momentum despite an unsettled global environment. Growth remained anchored in domestic demand, infrastructure expansion, and manufacturing activity, even as external risks from geopolitical tensions and commodity price volatility increased. According to estimates from the Reserve Bank of India and national data sources, Indias real GDP is expected to grow at around 7.6%, supported by resilient services, steady consumption, and continued investment momentum.
For sectors linked to metals, mobility, and industrial applications this environment translated into stable underlying demand, driven by infrastructure creation, automotive production, and energy transition initiatives.
Policy emphasis on strengthening domestic manufacturing, reducing import dependencies, and building industrial capacity continues to support long-term growth visibility.
Domestic demand remained the primary growth engine. Stable private consumption, supported by improving income levels and earlier easing of inflation, combined with sustained public capital expenditure, continued to drive infrastructure creation and industrial activity.
Government-led investments in logistics corridors, industrial clusters, and urban infrastructure are strengthening demand across core sectors such as steel, automotive, and engineering. In parallel, initiatives focused on manufacturing competitiveness, supply chain localisation, and capacity expansion are reinforcing Indias position as a key global manufacturing hub.
Inflation and Policy Environment
Inflation trends reflected both domestic and global influences. While earlier moderation was supported by improved supply conditions, emerging pressures from rising energy and commodity prices have introduced upside risks. This has implications for input costs and margin management across material-intensive industries.
The Reserve Bank of India maintained a calibrated and cautious monetary stance, balancing inflation control with growth support. Headline inflation is expected to remain within a manageable range, although it remains sensitive to crude oil price movements, weather-related supply disruptions, and exchange rate volatility. Policy transmission continues to support liquidity conditions while ensuring macroeconomic stability.
External Sector and Financial Stability
Indias external position remained broadly stable, supported by strong services exports and resilient remittance inflows. However, rising crude oil prices and global uncertainties may widen the current account deficit and exert pressure on inflation and currency stability.
Despite these challenges, India continues to attract strong foreign investment flows, driven by its structural growth prospects, expanding industrial base, and ongoing ease-of-doing-business reforms. The financial system remains robust, with healthy credit growth, improved asset quality, and strong capital buffers across banks, supporting continued economic expansion.
Sectoral Momentum and Infrastructure Expansion
The services economy continued to expand across software, consulting, logistics and tourism. Manufacturing remained resilient, with increasing contributions from medium- and high-technology industries, electronics, pharmaceuticals and automotive sectors. Accelerated public investment in roads, railways, ports, power and digital connectivity strengthened competitiveness and reduced structural bottlenecks.
Indias energy transition is progressing through renewable expansion, energy storage development and nuclear capacity augmentation, supported by evolving ESG and sustainable finance frameworks.
Employment and Skilling
Labour market indicators show improving workforce participation and declining unemployment. Implementation of labour codes, expansion of industry-aligned skilling initiatives and rising female workforce participation are strengthening labour market dynamics. Apprenticeships and digital skill platforms continue to enhance employability and productivity.
Outlook -
India is expected to maintain its position among the fastest- growing major economies, although growth is likely to moderate slightly in the near term. The Reserve Bank of India projects GDP growth at around 6.9% for FY 2026-27, reflecting the impact of rising external risks such as geopolitical tensions, commodity price volatility, and global uncertainty.
Despite this moderation, the underlying growth drivers remain strong.
Domestic demand, continued infrastructure investment, fiscal discipline, and a resilient financial system provide a stable foundation for sustained expansion. While external headwinds may create near-term volatility, ongoing reforms, digital advancement, and Indias demographic advantage position the economy for steady medium- term growth.
Industry Overview
Global Industrial Bearings Market
The global industrial bearings market is entering a sustained growth phase, supported by electrification, automation and infrastructure investments across developed and emerging economies. According to Mordor Intelligence, the market is expected to expand from USD 54.6 Billion in 2025 to USD 92.53 Billion by
2031, reflecting a CAGR of 9.2% over 2026-2031. Demand is being driven by higher capital expenditure in renewables, railways, metals, mining, cement and general industrial machinery, alongside rising electric vehicle penetration and factory automation. Bearings are evolving from standardised mechanical components to precision-engineered, performance- critical systems, improving uptime, reliability and energy efficiency in increasingly complex operating environments.
Key Trends
Investments across railways, metals, cement, mining, construction and general industrial machinery are driving demand for high-performance bearings and reliability solutions. Expansion in freight corridors, metro rail, renewable energy and industrial manufacturing continues to support demand for engineered bearing applications.
Industrial customers are increasingly adopting sensor- enabled bearings, condition monitoring systems and predictive maintenance solutions to improve uptime, reduce unplanned downtime and optimise asset performance. Integration of digital analytics and remote monitoring is accelerating across industrial operations.
Manufacturers are strengthening local production capabilities and regional supply chains to improve responsiveness, reduce lead times and mitigate global supply chain disruptions. The increasing focus on localisation is also supporting customised, application-specific solutions for Indian operating conditions.
Expansion in wind energy, metals, mining and other process industries is creating demand for durable, high- load and corrosion-resistant bearing solutions capable of operating in challenging industrial environments.
Industrial customers are increasingly focusing on lifecycle performance, reliability and maintenance efficiency. This is expanding opportunities in condition monitoring, lubrication management, remanufacturing and asset reliability services alongside traditional product sales.
Fluctuations in alloy prices, energy costs and freight rates continue to influence cost structures across the industry, reinforcing the need for procurement resilience, operational efficiency and disciplined pricing strategies.
The transition towards electric mobility is driving demand for specialised high-speed, low-friction and electrically insulated bearing solutions. However, the impact remains more pronounced within automotive-focused applications than across broader industrial markets.
Indian Industrial Bearings Market
The India industrial bearings market was valued at approximately INR 66,000 Crores in 2024 and is projected to reach around INR 97,000 Crores by 2033, registering a CAGR of 4.33% during 2025-2033, according to IMARC Group.
Key Trends
Continued investments in railways, metro networks, freight corridors, mining, cement and construction are supporting demand for industrial bearings across heavy machinery, material handling systems and rail applications. Expansion in railway modernisation and freight infrastructure is also increasing demand for high-performance and reliability- focused bearing solutions.
Industrial operators are investing in plant modernisation, process efficiency and equipment reliability to improve productivity and reduce downtime. This is driving demand for durable, high-load bearings designed for harsh operating environments across mining, cement and metals industries.
Indias wind energy installed capacity has increased 2.66 times since 2014, rising from
21.04 GW in March 2014 to 56.09 GW in March 2026, reflecting an addition of 35.05 GW.
The expansion of wind power infrastructure is driving demand for specialised bearings designed for high loads, long lifecycle performance and harsh operating conditions.
Industries are increasingly adopting low-friction and energy-efficient bearing solutions to improve equipment efficiency, reduce energy consumption and lower operating costs. Demand is rising for bearings capable of supporting higher operating speeds and improved machine performance.
Increasing automation and integration of AI- and IoT-enabled manufacturing systems are driving demand for precision bearings compatible with digitally connected industrial environments. Sensor-enabled bearings capable of monitoring vibration, temperature and equipment performance are witnessing higher adoption.
Industrial equipment manufacturers are focusing on compact, lightweight and higher-performance machinery to improve productivity and optimise space utilisation. This is increasing demand for bearings capable of operating at higher speeds and load capacities while maintaining reliability and durability.
Government-led manufacturing initiatives and supply chain diversification strategies are encouraging investments in local production and application- specific engineering capabilities. Demand for locally manufactured and customised bearing solutions continues to increase across industrial sectors.
Volatility in steel prices, energy costs and freight rates continues to impact industry cost structures, reinforcing the need for procurement efficiency, supply chain resilience and disciplined pricing strategies.
Key Downstream Industries
Manufacturing
Indias manufacturing sector
continued to strengthen during FY 2025-26, supported by
infrastructure spending, domestic demand and policy-led industrial j expansion. Manufacturing output j grew 8.1% in December 2025, while industrial GVA rose 7% during H1 FY 2025-26, led by automobiles, electronics, transport equipment and engineering industries. Indias j manufacturing ecosystem is also steadily moving towards higher-value and technologyintensive production, with medium- and high-technology industries contributing 46.3% of manufacturing value added.
Government initiatives such as Production-Linked Incentive
(PLI) schemes, industrial corridor development and public infrastructure investments continue to support capacity creation and localisation across sectors. Public capital expenditure stood at INR 11.21 Lakh Crores in FY 2025-26, while private investment announcements rose significantly during the year, reflecting improving industrial confidence and supply chain diversification efforts.
The sector is also witnessing increasing adoption of automation, predictive maintenance, advanced machinery and digitally integrated operations to improve productivity, reliability and energy efficiency. These trends are strengthening demand for precision bearings, industrial services, condition monitoring and engineered reliability solutions across manufacturing industries.
For Industrial Bearings and Services, expanding investments across manufacturing, metals, cement, railways, renewables and general machinery are expected to support growth in both OEM and aftermarket businesses. Rising focus on uptime, operational efficiency and localisation is also creating opportunities for value-added services, application engineering and predictive maintenance solutions.
Indian Railways
Indian Railways continues to be a key driver of Indias infrastructure and logistics ecosystem, supporting freight movement across coal, steel, cement, foodgrains and containers while enabling large-scale passenger mobility. Rising industrial activity, urbanisation and corridor-based development are increasing the strategic importance of rail infrastructure.
The Union Budget 2026-27 allocated a record INR 2,78,000 Crores to Indian Railways, focused on network expansion, electrification, rolling stock procurement, station redevelopment
and freight corridor development. High-speed rail projects and Dedicated Freight Corridors (DFCs) are further improving connectivity, logistics efficiency and freight capacity.
Railway modernisation is also accelerating adoption of advanced signalling systems, digital asset monitoring, energy-efficient locomotives and automated train protection technologies. Increasing localisation and domestic manufacturing of railway components are supporting Indias broader industrial ecosystem.
For Industrial Bearings and Services, expanding investments in rail infrastructure, rolling stock, freight corridors and high-speed rail are supporting demand for bearings, condition monitoring, lubrication and reliability solutions across passenger, freight and metro segments. Growth in rail freight and network modernisation is also expected to strengthen aftermarket and maintenance opportunities.
Capital Goods
The capital goods sector remains a key enabler of Indias industrial and infrastructure expansion, supporting manufacturing, construction, mining, energy and logistics. Rising infrastructure spending and industrial investments continue to strengthen demand for plant, machinery and engineering equipment.
Government capital expenditure has increased significantly to INR 11.21 Lakh Crores in FY 2025-26, with INR 12.2 Lakh Crores proposed for FY 2026-27. Capital goods output grew 8.1% in December 2025, while capacity utilisation improved to around 74-75%, reflecting improving industrial activity and investment momentum. Domestic production reached INR 2,05,194 Crores in FY 2024-25.
Government initiatives such as the PLI scheme, container manufacturing incentives, construction equipment schemes and investments in precision manufacturing are further supporting localisation and technology adoption across industrial sectors.
Rising investments in industrial machinery, construction equipment, automation and heavy engineering are expected to support demand for bearings, lubrication, condition monitoring and reliability solutions across OEM and aftermarket segments.
Renewable Energy
Renewable energy remains central to Indias energy transition and industrial decarbonisation agenda. Indias renewable energy capacity increased from 76.38 GW in 2014 to 274.68 GW in March 2026, led by strong growth in solar and wind energy.
Wind energy continues to gain momentum, with India adding a record 6.05 GW of wind capacity during FY 2025-26 versus 4.15 GW in the previous year. Installed wind capacity increased to 56.09 GW in March 2026, while domestic wind turbine manufacturing capacity expanded to around 24 GW, supported by localisation initiatives and rising private-sector participation.
Government measures to accelerate project approvals, strengthen grid infrastructure and support domestic renewable manufacturing are further improving sector visibility j
and execution. Increasing renewable j penetration is also driving investments in transmission, energy storage and grid modernisation.
For industrial bearing companies, expanding investments in wind j
energy, renewable infrastructure and turbine manufacturing are supporting demand for bearings, I
lubrication, condition monitoring and reliability solutions. Wind energy remains a key opportunity area, particularly in application- specific and high-performance industrial solutions.
Company Overview
SKF India (Industrial) (also referred to as ‘The Company) is a technology-driven industrial solutions provider dedicated to enabling reliable rotation, operational efficiency, and lifecycle performance across critical industries.
The Company was incorporated on 17th December, 2024, as a wholly owned subsidiary of SKF India Limited for the purpose of carrying on the industrial business, as part of SKF Groups global separation of its Automotive and Industrial businesses.
The Boards of Directors of the Company and SKF India Limited, at their respective meetings held on 26th December, 2024, approved the Scheme of Arrangement between SKF India Limited (‘Demerged Company) and SKF India (Industrial) Limited (‘Resulting Company) and their respective shareholders and creditors (‘Scheme) for the
demerger of Industrial Business (as defined in the Scheme) into the Company on a going concern basis, subject to requisite statutory and regulatory approvals under Sections 230-232 of the Companies Act, 2013.
The Demerger was undertaken to inter alia enable the Demerged Company and the Resulting Company to operate independently, pursue distinct growth strategies, improve efficiency, enhance strategic flexibility, de-risk both the Automotive and Industrial businesses, and unlock value for shareholders while providing clearer visibility into each businesss performance.
The Scheme was approved by the Honble National Company Law Tribunal, Mumbai Bench vide its Order dated 26th September, 2025. The Appointed Date and Effective Date of the Scheme are 1st October, 2025.
Upon the Scheme becoming effective, the Company allotted fully paid-up equity shares of INR 10/- each to the members of SKF India Limited as on the Record Date (i.e., 15th October, 2025), in accordance with the share entitlement ratio of 1 (One) fully paid-up equity share of INR 10/- (Indian Rupees Ten only) each of the Resulting Company for every 1 (One) fully paid-up equity share of INR 10/- (Indian Rupees Ten only) each held in the Demerged Company (‘Share Entitlement Ratio), as set out in the Scheme.
In terms of the Scheme, the Companys shares were listed on BSE Limited (Scrip Code: 544572) and the National Stock Exchange of India Limited (Symbol: SKFINDUS) on 5th December, 2025, marking its commencement as an independent listed entity positioned to pursue growth in the Industrial business segment.
Business and Solutions Portfolio
The Companys offerings comprise the following:
Market Presence and Manufacturing Footprint
SKF India (Industrial) serves over j
40+ industrial segments through direct engagement and a network of over 120+ distributors across j
India. Key sectors include railways, metals, cement, mining, wind j
energy, general machinery, and j
industrial distribution.
With a dedicated industrial manufacturing footprint and I
ongoing capacity expansion in Pune, the Company strengthens localisation, supply resilience, and export participation.
As an independent industrial specialist from October 2025 onwards, SKF India (Industrial) combines global SKF technology expertise with local execution depth to drive sustainable industrial progress and long-term value creation. :
Financial Performance
Revenue from operations stood at INR 34,403.6 Million in FY 202526, while total income amounted to INR 34,994.8 Million. Profit before exceptional items and tax was INR 4,173.7 Million. During the year, the Company recognised
an exceptional loss of INR 1,961.0 Million. Profit before tax stood at INR 2,212.7 Million, while profit after tax amounted to INR 2,176.7 Million.
Other comprehensive income (net of tax) was INR 38.1 Million, resulting in total comprehensive income of
INR 2,214.8 Million. Basic and diluted earnings per share stood at INR 44.0, reflecting the Companys financial performance during the year.
Statement of Profit and Loss for the Year Ended on 31st March, 2026 (INR in Mn)
| Particulars | Year Ended 31st March, 2026 | Period from 17th December, 2024 to 31st March, 2025 |
| Revenue from Operations | 34,403.6 | 7,206.1 |
| Other Income | 591.2 | 126.6 |
| Total Income | 34,994.8 | 7,332.7 |
| Expenses | ||
| Cost of Materials Consumed | 5,638.4 | 993.2 |
| Purchases of Stock-in-Trade | 18,120.2 | 3,474.9 |
| Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade | (514.4) | (348.3) |
| Employee Benefits Expense | 2,152.9 | 454.3 |
| Depreciation and Amortisation Expense | 313.8 | 92.7 |
| Finance Costs | 2.1 | 1.4 |
| Other Expenses | 5,108.1 | 1,020.5 |
| Total Expenses | 30,821.1 | 5,688.7 |
| Profit Before Exceptional Items and Tax | 4,173.7 | 1,644.0 |
| Exceptional Items | 1,961.0 | - |
| Profit Before Tax | 2,212.7 | 1,644.0 |
| Income Tax Expense | ||
| Current Tax (Including Tax Relating to Earlier Years) | 477.2 | 425.8 |
| Deferred Tax (Credit)/Charge | (441.2) | 5.1 |
| Total Tax Expense | 36.0 | 430.9 |
| Profit for the Year/Period | 2,176.7 | 1,213.1 |
| Other Comprehensive Income (Net of Tax) | ||
| Remeasurement of Net Defined Benefits Gain | 50.9 | 32.4 |
| Income Tax Charge Relating to These Items | (12.8) | (8.1) |
| Other Comprehensive Income for the Year/Period (Net of Tax) | 38.1 | 24.3 |
| Total Comprehensive Income for the Year/Period | 2,214.8 | 1,237.4 |
| Earnings Per Equity Share | ||
| (Face Value INR 10 Each) | ||
| Basic (INR) | 44.0 | 24.5 |
| Diluted (INR) | 44.0 | 24.5 |
Key Financial Ratios
| Ratio | 2025-26 | 2024-25 | Change (%) | Remarks for Variance >25% |
| Current Ratio (times) | 1.7 | 2.6 | (33.1%) | Not Applicable* |
| Debt-Equity Ratio (times) | 0.00 | 0.00 | 100.8% | Not Applicable* |
| Debt Service Coverage Ratio (times) | 45.1 | 57.0 | (21.0%) | Not Applicable* |
| Return on Equity (%) | 15.6% | 9.3% | 68.8% | Not Applicable* |
| Inventory Turnover Ratio (times) | 4.5 | 0.8 | 449.4% | Not Applicable* |
| Trade Receivables Turnover Ratio (times) | 5.1 | 1.4 | 272.7% | Not Applicable* |
| Trade Payables Turnover Ratio (times) | 3.9 | 0.9 | 320.6% | Not Applicable* |
| Net Capital Turnover Ratio (times) | 3.9 | 0.8 | 408.5% | Not Applicable* |
| Net Profit Ratio (%) | 6.3% | 16.8% | (62.4%) | Not Applicable* |
| Return on Capital Employed (%) | 28.2% | 12.5% | 124.9% | Not Applicable* |
| Return on Investment (%) | 18.2% | 8.6% | 111.8% | Not Applicable* |
‘The ratios are not comparable due to the Scheme of Arrangement.
Notes: As a result of the Scheme becoming effective, the assets, liabilities and retained earnings as at 31st March, 2026 reflect the impact of the Scheme and are therefore not directly comparable with those as at 31st March, 2025.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
