Timken India Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Timken India delivered strong top-line growth of 13.8% in Q3 FY26, driven by robust demand in the Commercial Vehicle (Mobile) and Distribution segments. However, margins faced significant transitional pressure from the capitalization of the Bharuch facility and new Labor Code provisions. Management remains bullish on long-term prospects, citing upcoming capacity expansions in Jamshedpur and favorable global trade developments.

Highlights

  • Revenue from operations reached ₹764.4 crores, a 13.8% increase YoY, though down 1% sequentially.

  • PBT stood at ₹71.9 crores, significantly impacted by ₹9-10 crores in quarterly depreciation from the new Bharuch plant.

  • Mobile segment (Commercial Vehicles) saw strong acceleration, growing 20% YoY and 9% QoQ to ₹157.1 crores.

  • Rail segment revenue was ₹128.6 crores, up 10.5% YoY but down sequentially due to typical Q3 seasonality.

  • Bharuch plant utilization is currently at 30%, with a target to exceed 50% by Q1 FY27.

  • One-time transitional impacts on PBT included Labor Code (60 bps), lower other income (120 bps), and Bharuch ramp-up (170 bps).

  • 9M FY26 revenue stood at ₹2,346 crores, reflecting a 6% YoY growth rate.

Key financials

2 periods

Headline

  • Revenue
    ₹764.4 Cr
    YoY +13.8% QoQ -1%
  • PBT
    ₹71.9 Cr
  • PBT Margin (Adjusted)
    13%

9M

  • Revenue
    ₹2,346 Cr
    YoY +6%

What they filed

Q1 FY27: revenue up 14.8%, net profit up 10.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue753 671 940 809 773 +3%764 +14%1,073 +14%929 +15%
EBITDA133 107 210 142 138 +4%96 −10%235 +12%172 +21%
Net profit90 74 187 104 89 −1%50 −32%155 −17%115 +11%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹749.7 Cr Total
  • Process ₹167 Cr 22.3%
  • Export Intercompany ₹159 Cr 21.2%
  • Mobile (CV & Others) ₹157.1 Cr 21.0%
  • Distribution ₹138 Cr 18.4%
  • Rail ₹128.6 Cr 17.2%

Guidance & targets

Capacity

  • Bharuch Plant Utilization Capacity · Q1 FY27 · Medium confidence >50%

    From 30% today

    So that at least we had in a sizable percentage more than -- a little more than 50% utilization by then [Q1 next financial year].

    — Sujit Pattanaik, CFO

Capex

  • Jamshedpur Rail Expansion Live Date Capex · Q3 FY27 · High confidence Q3 FY27
    Yes. So that project, we are expecting to go live towards the end of this calendar year, which will be Q3 of financial year '26-'27.

    — Sujit Pattanaik, CFO

  • FRC Line Installation Capex · Q1/Q2 FY27 · High confidence Q1/Q2 FY27
    So the original plan was to install all the equipment by quarter 1 -- end of quarter 1 and beginning of quarter 2 of this financial year -- next financial year, '26-'27.

    — Sujit Pattanaik, CFO

Revenue

  • GGB Technology Annual Revenue Run Rate Revenue · FY27 · Medium confidence ₹50-55 crores
    I would say somewhat close to INR50 crores, INR55 crores. They will also have their seasonality.

    — Sujit Pattanaik, CFO

Risks & concerns

  • Labor Code Implementation

    medium

    New Labor Codes effective Nov 21 impacted gratuity valuations, hitting margins by ~60 bps.

    Management acknowledged

  • Bharuch Plant Fixed Costs

    medium

    Full depreciation of ₹9-10 cr per quarter is being taken while utilization is only at 30%, creating a temporary margin drag.

    Both acknowledged

  • Unfavorable Product Mix

    low

    Seasonality in high-margin Rail business typically makes Q3 a weaker mix quarter compared to Q4.

    Management acknowledged

Areas of evasion (2)

  • Specific margin percentages for auto vs non-auto segments
  • Exact order book numbers for SRB/CRB lines

Q&A highlights

2 direct
Margin compression of 400 bps QoQ Direct
One is the onetime Labor Code impact... The second is the other income reduced... The third is the new plant, Bharuch ramp-up cost.

Explains the sharp drop in profitability despite strong revenue growth, attributing it to specific transitional costs.

Asked by Shubham Bhatra, Ambit AMC

Impact of US/EU trade deals on exports Partial
So that 50% to 18% is a headline tariff reduction. But we need to go into the details of the engineered growth... we need to wait and watch.

Highlights a potential massive tailwind for exports if tariffs drop from 50% to 18%, though management is being conservative until fine prints are clear.

Asked by Sabyasachi Mukerji, Bajaj Finserv AMC

Bharuch plant asset turns and revenue targets Direct
Generally a bearing company would take 4 to 5 years to achieve this. But Timken India will achieve this within maybe 2 to 3 years.

Confirms management's aggressive timeline for reaching full revenue potential (3x capex) from the new facility.

Asked by Sisir Saha, Saha Security

2 min read 5 chapters

Detailed narrative

Bharuch Facility Ramp-up and Margin Impact

The new Bharuch facility is currently the primary driver of margin volatility. While it contributed ₹12-15 crores in revenue this quarter, it also brought a full quarterly depreciation charge of ₹9-10 crores, impacting PBT by approximately 170 basis points. Management expects utilization to climb from the current 30% to over 50% by Q1 FY27, which will begin to normalize margins as operating leverage kicks in.

Rail Segment Seasonality and Expansion

The Rail segment reported revenue of ₹128.6 crores, a 10.5% YoY increase, despite Q3 being a seasonally slow quarter for wagon builds and government spending. Management highlighted that Q4 is historically the strongest quarter for this segment. To support long-term growth, a ₹120 crore expansion in Jamshedpur is underway and expected to go live by Q3 FY27.

Mobile and Commercial Vehicle Acceleration

The Mobile segment, which includes on-highway and off-highway commercial vehicles, showed significant momentum with 20% YoY growth to ₹157.1 crores. This acceleration is attributed to strong pull from OEMs and a steady growth in volumes. Management expects this momentum to continue into the final quarter of the financial year as OEMs build stock for record sales.

GGB Acquisition and FRC Line Integration

The acquisition of GGB Technology is now reflected in consolidated results, contributing approximately ₹15 crores in revenue for the quarter with an annual run rate target of ₹50-55 crores. Additionally, Timken is investing ₹35 crores in a new FRC (engineered material) line at Bharuch, which is on track for installation by Q1/Q2 FY27 to serve EV and process industry applications.

Global Trade Developments and Export Outlook

Management expressed optimism regarding recent trade engagements between India, the US, and the EU. Specifically, a potential reduction in US tariffs from 50% to 18% for certain engineered products could significantly enhance Timken India's export competitiveness. While they are waiting for the final HS code details, they believe these developments will strengthen export opportunities over the medium to long term.

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