Timken India

Timken India reported its best-ever first quarter with revenue of ₹808.8 crores, a 3.2% YoY increase. This performance was achieved despite the typical seasonal dip following Q4, which historically is the company's strongest quarter. PBT remained stable at ₹130.4 crores, supported by cost control efforts that mitigated some volume softness and cost fluctuations.

The company successfully capitalized its first Cylindrical Roller Bearing (CRB) line at the Bharuch plant in the last week of June 2025. Commercial production has commenced, and invoicing began in July, primarily for export markets. Management maintains its target of reaching 45-50% exit utilization for this new facility by the end of the current financial year.

The rail segment contributed ₹196.5 crores to the top line, representing 24% of total revenue. While this was a sequential drop from the record ₹303 crores in Q4 FY25, management remains optimistic about long-term growth driven by Indian Railways' commitment to Vande Bharat platforms and Dedicated Freight Corridors (DFC). Growth in rail and process segments is expected to be in the high single digits for FY26.

Management addressed concerns regarding potential US tariffs and weakness in the North American Class 8 truck industry. They clarified that their target export markets for CRB and SRB products are diversified across Australia, South Africa, Europe, and ASEAN. While the US remains a key market, the company is actively derisking and views potential tariffs as a 'speed breaker' rather than a 'showstopper'.

Timken is investing ₹150+ crores in immediate expansion, including ₹120 crores for rail capacity in Jamshedpur and ₹35 crores for a new plain bearing line in Bharuch. The plain bearing project represents a strategic move into the parent company's non-bearing portfolio, with production expected to start next year. Management expects an asset turnover of more than 2x for the Jamshedpur investment.