Timken India (522113) Q3 25/26 earnings summary

Executive summary

• Revenue for Q3 FY26 was INR 764 crore, up 13.8% year-over-year, but down 1% sequentially due to seasonality in the Rail business.

• Profit before tax for the quarter was INR 719 million, lower year-over-year and sequentially, impacted by one-time items including Labour Code changes, reduced other income, and ramp-up costs at the new Bharuch plant.

• Nine-month revenue reached INR 2,346 crore, reflecting nearly 6% year-over-year growth, with all segments contributing.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Acquisition of 100% equity in Timken GGB Technology Private Limited completed in December 2025.

Financial highlights

• Q3 revenue grew 13.8% year-over-year to INR 764 crore; sequentially down 1%.

• Standalone revenue from operations for Q3 FY26: ₹7,643.77 million, up from ₹6,714.32 million in Q3 FY25.

• Standalone net profit after tax for Q3 FY26: ₹498.49 million, compared to ₹743.06 million in Q3 FY25.

• Consolidated revenue from operations for Q3 FY26: ₹7,796.69 million, up from ₹6,833.51 million in Q3 FY25.

• Consolidated net profit after tax for Q3 FY26: ₹545.56 million, compared to ₹782.08 million in Q3 FY25.

• Profit before tax margin for the nine months was 13.8%, down from 15.9% last year, mainly due to transitional impacts.

• Gross margin compression of 400 bps QoQ attributed to unfavorable mix and incremental costs from Bharuch plant.

• Bharuch plant ramp-up cost impacted margins by 170 bps; Labour Code changes by 60 bps; lower other income by 120 bps.

Outlook and guidance

• Management expects margin normalization as new plant utilization improves and ramp-up costs moderate.

• Rail business expected to see steady growth, with Q4 typically stronger due to government spending cycles.

• Recent India-U.S. and EU trade agreements anticipated to create favorable export opportunities, though fine print is still under review.

• Targeting over 50% utilization at Bharuch plant by early next fiscal year.

• Company continues to monitor regulatory changes, especially regarding new Labour Codes, and will adjust accounting as needed.