Timken India Ltd (TIMKEN) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Avendus): Ladies and gentlemen, good day, and welcome to Timken India Q2 FY '27 Earnings Conference Call hosted by Avendus. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kripashankar. Thank you, and over to you, sir.
Kripashankar (Avendus): Good evening. Appreciate everyone joining in for the 2Q FY '27 Conference Call of Timken India.
Kripashankar (Avendus): We have with us Mr. Sanjay Koul, Chairman and Managing Director and Mr. Sujit Kumar Patnaik, the CFO of the company. I will now handover the call to them and over to you sir for opening remarks.
Sanjay Koul (Timken India Ltd): Thank you so much. Thank you very much, Kripaji. so, formally, good afternoon and, thanks a lot for joining, this conference call today. I formally welcome you to the Timken India investor call to discuss the financial results for the second quarter and also half year ended September 30, 2026. So, when we entered the FY 27, it was on a positive note, as you know, and I am pleased to report that the momentum is continued into the second quarter, as well. During Q2, we delivered, I think, a strong double-digit revenue growth accompanied by a nice little growth in profitability. The performance reflects continued demand across all the key end markets, and a little bit delay in the rail. The contribution from our expanded capacity and the disciplined execution across both domestic and export businesses. Update on this Q2 FY26-27 standalone. Revenue from operations stood at 969 crore, representing a growth of 25.4% over the corresponding quarter last year. So, quarter compared to the last year was 25%. Revenue also grew almost 4.3 % over Q1 '27. PBT for the quarter stood at 156 crore compared to 120 crore in Q2 '26, representing a growth of almost 29.5%. PBT margin for the quarter stood at 16.1% compared with 15.6 in the corresponding quarter last year. So, that is a 50 basis point improvement. Net profit after tax for the quarter stood at 116 crore compared with 89 crore in Q2, representing a nice growth of 29.7%. EBITDA margin for the quarter is at approximately 19.2%. So, I think improvement in profitability is encouraging for the for the company and obviously, there are cost pressures that is in the background. We have new assets. So, depreciation is there, cost of fuel has gone up, gas has gone up and against that, this is pretty encouraging. So, quickly on the half year performance for the first half of FY '27, standalone revenue from operations stood at 189 1,898 4 million, an increase of almost 20% of year-on-profit. Profit before tax was almost 306 crore, while profit after tax at 231 crore, so, an increase of 19%. Quickly on the consolidated numbers. The quarter stood at 986 crore compared to 786 in Q2 FY '26. PBT 162 million 162. 9 million, so, 162 crore, while profit after tax was 120 crore and approximately increase of 29 Y-o-Y. For the first half of FY '27, the consolidated revenues are 1,929 crore rupees, while consolidated net profit after tax stood at 240 crore rupees. So, overall new Bharuch facility continues to progress through its ramp-up phase, with the lines capitalized. We are focused on improving utilization. I am sure, that would be a question, but we are progressing on that. We are increasing the utilization. Our investment towards rail expansion at Jamshedpur and plain bearing at Bharuch, they are on target. So, very soon, we should be able to commission and start the PPAPs and things like that. Also, the amal- amalgamation of Timken GGB Technology Private Limited with Timken India Limited is progressing smoothly. So, that regulatory process is on. So, the proposed integration is aimed at driving, obviously, synergies, efficiencies, and simplifying the overall overall structure. On the cost side, cost is going up, so, that is the focus area. So, we are working on cost reduction, et cetera. So, as you know, that cost is going to be a challenge in coming months and years also. The external environment remains mixed. Global industrial activity continues to be influenced by geopolitics. So, that is a challenge. As we all know, trade-related uncertainties are very much there, and supply chain alignments are happening with every passing week. So So, we are connected to our customers. At the same time, demand from our key customer segment is okay. We continue to monitor development, so, I would say that domestically, we should be pretty much okay as the demand looks very very looks to be solid.
Sanjay Koul (Timken India Ltd): That overall, it is a fairly, nice picture as we walk into the next quarter, as well. With that, I would, throw the line open for questions, please.
Moderator (Avendus): Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Raghunandhan NL from Nuvama Research Private Limited. Please go ahead.
Raghunandhan NL (Nuvama Research Private Limited): Thank you, sir, for the opportunity. Congratulations on the strong, all-round performance. Sir, can you please share the segment-wise revenue for Q2, which you generally do?
Sanjay Koul (Timken India Ltd): Yeah, sure. Why not? So, yeah, so on the, front end-wise, unit, F Q2 FY '27, rail was, at, 156 crores, 156.7. So that was 16% of the pie. Mobile others was 204 crores, that was 21% of the pie. Distribution remained at 148.8 crores, which was 15% of the pie. Process stood at 190.9 Cr, was 20% of the pie. And exports, was at 262.7, which was 27%. And then we had some export incentives. So, that is how the Q2 969.3 spread out.
Raghunandhan NL (Nuvama Research Private Limited): Got it, sir. Thank you so much for that. And with regards to Bharuch plant, can you indicate how was the revenue utilization for Q2? How do you see the ramp-up going ahead? Have we reached 70% as of now, which was earlier target for September?
Sanjay Koul (Timken India Ltd): Yeah, so the the work is in full full bloom and the capacity utilization is not yet at 70 but the but the certification, MOCs, because you know they were served from different plants, so MOCs are pretty much dependent on the sales side, which is the customer side. We are roughly at, Avijit currently at what?
Sujit Kumar Patnaik (Timken India Ltd): Yeah. So, overall plant if we look at it we are anywhere close to, I would say, 60%. 60. But if you look at it specifically the SRB plant, which the Chairman told in the last meeting where the capacity is slightly higher than our CRB lines, so SRB lines we have already reached 70% for the quarter what we promised in the last quarter. CRB lines are still below 60%, I would say. So, on an average it is at 60%, and from an revenue perspective for this quarter was very close to Rs. 75 crore.
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