Thanks, Amit. On behalf of 361 Capital, welcome all to Timken India Limited 1Q FY27 post-results conference call.

From Timken management, we have with us today Mr. Sanjay Koul, Chairman and Managing Director; Mr.

Sujit Kumar Pattanaik, Business Controller India, CFO and Whole-time Director. I now hand over the call to Mr.

Sanjay Koul for the opening remarks, to be followed by question-and-answer session. Over to you, sir.

Thank you, Mr. Annamalai.

Thanks a lot. Hello to everybody, and a very warm good afternoon, and thank you for joining.

I must say it is my privilege, and Sujit is with me, our privilege of both of us from Timken India side for this investor call, and to share with you a little bit more details on the first quarter which ended 30th June 2026. Before I turn to the current quarter, let me briefly reflect on how we closed FY26.

It was a strong finish year as we spoke in May a little bit as well. The fourth quarter always in India, and traditionally for us, has been the best, and FY26 was no exception.

We closed the year with the highest stand-alone revenue of ₹3,147 crore and robust Q4 was more than ₹1,000 crore. Against that backdrop, I am pleased to report that we have started the FY27 on a steady note, carrying forward the consistent and our broad-based performance which we have been doing, which defines Timken India, and we have delivered high double-digit revenue growth this quarter YoY driven by resilient demand, especially in the core segments, and then our execution both for export and domestic.

As is typical to our business, bearings business being cyclical in nature, first quarter comes off from the last quarter, which is always very high. Against that backdrop, our revenue has been ₹929 crore, almost 15% growth for the same period last year.

PBT for the quarter stood at ₹150 crore, and it was at ₹130 crore in the same quarter last year. That gives us 15% top-line growth, 15% bottom-line growth, and you know the cost pressures we are at.

PBT margin was at 16.2%, broadly in line with 16.1% in Q1 '26. It is worth noting that the same quarter last year did not carry depreciation of our new capacity investment, which have since been capitalized, adjusted for this higher depreciation that is also in that.

You can see there is a margin improvement because depreciation has grown. Other income for the quarter was ₹10 crore.

Net profit after tax stood at ₹115 crore. EBITDA margin for the quarter was at 19.6%.

We also have the consolidated numbers because of the other entity. Consolidated revenue is at ₹943 crore for the quarter ended 30th June, consolidated profit at ₹156 crore, consolidated net profit at ₹119 crore.

Also, I am happy to share that during the quarter, we have secured the BIS certification for CRB and CRB rollers and TRB rollers, and we are on the journey to complete that process. That is obviously certifying our commitment to the quality and the standards for our domestic market.

The scheme of amalgamation of the Timken GGB Technology Private Limited with Timken India Limited has been approved by the board earlier, and is now with NCLT, that is the law tribunal Bangalore bench. This merger will help drive further synergies and efficiencies and reduce overall costs.

Our new Bharuch plant continues to ramp up progressively, and investment towards rail expansion at Jamshedpur and plain bearings continues to be on track. With that, I would open the question-and-answer session.

Happy to answer any questions.

Yeah. Sir, good evening, and thank you for the opportunity.

Firstly, just a bookkeeping question, if you could give the revenue breakup for this quarter for this ₹929 crore? Yes.

Yeah.

Thanks, Mukesh. For this quarter FY27 first quarter, rail stood at ₹200 crore, and that is 22% of the total ₹929 [crore?]

. Mobile Others was at ₹184 crore, Distribution was at ₹153.9 [crore?]

, which is ₹154 [crore?] almost, Process was ₹186 [crore?]

, and Exports was at almost ₹200 crore, and slight export incentive of 1% of the total.

Got it. Thank you.

My question now is I was just seeing that the parent has recently divested its belts business under its 80/20 philosophy and has been kind of mentioning about relooking at the portfolio to improve profitability and kind of getting out of some low-margin businesses. Just trying to understand how does this kind of reflect for the India business?

Is there going to be some kind of a change in strategy here in India? You are obviously expanding into Bharuch, but is there something more strategic that India business is also going to be doing?

Yeah.

Thanks for the question, Mukesh, and obviously the Timken Global, more than 50% of their revenues is in Americas. In Americas, they have their portfolio, which is different to India, the markets are different, and 80/20 at the end of the day is largely a Pareto analysis of how and why you should serve.

Obviously, endeavor for every company is to grow their margins, and at the same time, I won't say exit, how do you serve some businesses which are not conducive to the overall business. So, 80/20 is that who are your 80s, which are the performance enhancers, or who are your 20s, which are maybe a little bit of a drag down.

That

strategy is being used, and 80/20 is a very proven science, and has been effective in elevating many companies. Necessarily is to focus on improving sales, improving service levels.

Say, for example, in our business, on-time delivery levels, should it be 90% or should it be 100% for customer A versus customer B versus customer C? That due diligence is happening globally.

This is performance to elevate, that is the whole idea. The idea is to become better and better, and I think it would help the India piece as well because this is a performance enhancer, and which means that how do you serve the customer, how do you bring in more speed to the customer, and then at the same time, how do you also decrease your costs, how do you consolidate, how do you do your made-to-forecast versus made-to-order, how do you serve the customer out of inventory versus how do you serve the customer out of orders and things like that,

and

should you serve the small customer directly, or should you empower your distribution more, and how do you use digitization. All this is actually going to help the company, and it has a very good past record of enhancing the performance of companies.

We are looking forward to this strategic direction, which globally Mr. Lucian has started with Timken in Europe, America, and we can already feel the energy in that piece.

We are looking forward to it, and we'll do what is best for Timken India Limited. The idea is obviously grow more in all the territories, and for Timken India, in India and the subcontinent.

Sure. Thank you for that detailed answer.

Second question is a little more specific to the Bharuch plant. I think last time around, you had commented that around July, August, some of the PPAPs, etc.

would be done, and commercial supplies will start from many other SKUs. Could you give us an update on the current utilization rates of the facility there, and how are you seeing the '27 kind of ramp-up for the facility?

Yeah. With every passing week, we are producing more PPAPs.

The ramp-up obviously bearing plant are tool-specific and customer-specific, and you have to get the management of approvals, some customer approvals. I am pleased to say that in my long span in the world of manufacturing, this is one of the fastest ramp-up we have seen, and pretty top quality product being produced out of a very top-notch plant.

The revenues are growing with every passing week, and I'll ask Sujit to add more color to the whole thing so that you get a little bit more specific answer, but overall, the sense is very good.

That's right, sir. As Chairman explained, the revenues are growing, and here the objective is how quickly we are ramping up in terms of the past deployment to the building and customer approvals, and that's something which the team is doing an extraordinary job for last several quarters.

It may not be [clear?] , but because of course there will be a transitional time between PPAP and to the production versus it hits the revenue, but we are doing a bit.

As far as this quarter was concerned, the revenue was approximately anywhere close to ₹50 crore, and we are growing in the [unclear] there. We are almost very [unclear].

Yeah.

Okay. Just reconfirming that number, sir, ₹60 crore you mentioned?

50. 5-0.

5-0.

5. Got it.

Sorry.

This would be what utilization levels?

Yeah. Again, utilization at a plant level we cannot put it across, as you know probably that broadly we have three manufacturing lines of SRB and CRB, spherical and cylindrical.

At a high level, as Chairman explained in the last meeting as well, there has been a ramp-up of the demand on the spherical roller bearing, so that utilization level in the last quarter would have been anywhere close to 40%, 45%, and we expect that to ramp it up to 70% as Chairman told in the last meeting, that in August, September time

frame.

The CRB line is slightly lower in terms of its utilization, and we expect to ramp it out towards the Q3 end and Q4.

Got it. That was helpful.

Thanks so much. I'll get back in the queue.

Sorry.

Yeah. Thank you.

Yeah. Go ahead with the next question.

Good evening, sir. Thank you for the opportunity.

Sir, firstly, on Process and Export segments, we have seen a growth of 28% and 21%. If you can talk about which are the categories which are helping the growth in the Process segment?

Also on the export side, directionally, if you can talk about outlook, whether you see that strong growth continuing?

Okay. On the process side, YoY it is, I think, almost 30% growth, and largely coming from the metal customers as we see a little bit of projects coming into, and there are some companies which are exporting, making mills in India and exporting out of India.

We are being pretty successful in that. It is not necessarily only the MRO, it is the projects which is there.

Then also there is a nice RE factor in this, the wind is playing a good part. As you know that wind is growing in India both in terms of export of the gearboxes out of India and then putting more windmills and wind farms in India.

That is the story on process, some of it is metal, but largely it is wind. On the intercompany, as you know that America market is resilient, it is showing nice signs, though Europe and other places, South Africa is okay, Australia is flattish, ASEAN is down, China is down, but American market is up.

We are supplying tapers to America, so that is the intercompany push which is almost 21% coming out of that. We see that this will continue, though obviously the geopolitics is playing its role, and all that is happening on one side.

I believe the new normal, like the post-COVID, this is the new normal, that geopolitics, challenges, war will be there in bits and pieces, and at the same time the life will go on. The big pipeline they are putting up in Oman, 300, 400 km, $300-plus billion, despite the war happening on the other side is happening, and similarly the exports to America are looking up currently, and I think Europe is down, but US looks pretty okay.

That is the story in the US for the exports for us.

Noted, sir. Just a clarification, on the exports to US, what would be the applicable tariff?

Applicable tariff for US, I don't remember exactly, but that I need to check. I think I don't remember, but China tariff is certainly far more on tapers as compared to India, and that regime has been there for many, many years.

Exact tariff, I don't remember what was our landing in US. Once upon a time was 5.6%, 5.8%, then went up and then came down, went up, exact, I don't remember.

Got it, sir. As long as we are more competitive, that is good for us.

On the railway side, I had a question that we have started the year with a single-digit growth, around 3%, and how do you see the outlook ahead in terms of the government procurement, and also if you can indicate how the ramp-up in Jamshedpur plant can help the revenue maybe by end of the fiscal and next fiscal?

The government buying for railway is certainly slow. That is a time issue.

The year-on-year, there will be that slow, steady growth, while some of the projects get deferred at times because many times the funds of the central government get diverted sometimes to infra, sometimes to defense, depending on the need of the government. Railway is little bit sluggish as we speak, but it is a issue of time, it'll come back.

That is A. B is that our rail investment as it comes to start producing commercially by the calendar year-end, we will immediately ramp it up because of the fact that rail also has a nice market in other parts of the world which would benefit, and by the time the Indian rail would also have their own tenders, etc., out, which are delayed a little bit, generally they should have been out couple of months back, they are a little bit delayed because the government is diverting funds maybe to defense and other places currently.

Noted, sir. Thank you.

Just one last question. Last quarter also you had indicated about the cost pressures, and you have been taking price hike and pass-throughs, and you would be working on cost savings also, but this quarter your gross margin has been maintained on a QoQ basis.

If you can talk about the cost pressures, and whether you see any more pressures going forward?

The cost pressures are very much there. The steel industry is pushing hard to increase their prices.

They have already put some January ₹1,500 or ₹1,600 per ton, then by April another ₹3,500 ton. In totality, that 1,500 plus 3,500, around ₹5,000 per ton is already into this, which obviously we are trying to get from all our customers.

Most of them have started paying, but steel will not go up if you see the capacity utilization of the steel. That is still not fully utilized, you know that better than me.

Cost pressure from the gas is already now into the system, and bearing industry has an option to convert from LPG to natural gas, and we have largely been able to implement all that across our supply chain and in our plants at a war footing while they were fighting Hormuz, we were fighting the conversion from LPG to natural gas. We have done it in all our plants at some record speed, which is normally unthinkable in other parts of the world.

I would say that the cost which is already into the system is very much now part of the system. Further cost escalations depend on how the war will play out, which, by the way, the Brent was less than $80 two days back despite the war, because the then Mr.

Trump said that I'm holding, maybe that indicated something. Beyond this, whatever that has come, there might be a little bit like the carbide market has gone up pretty significantly, grinding market slightly, and the residual like the coolant etc.

all that has gone up a little bit. Beyond that, the only market which is a little bit currently volatile is the base oil which goes into the grease.

Other than that, I don't see any further escalation from today.

Noted, sir. Thank you for that comprehensive answer.

I'll fall back into the queue. Thank you so much.

Thank you.

Thank you very much for the opportunity, sir. Sir, continuing from one of the earlier questions on the divestment of some part of the portfolio, namely belts, in that same analyst meet held by the parent during May 2026, they had also indicated the divestment of the automotive OE business.

Now, as I understand that commercial vehicles and tractors are very significant part of our business here in India, any read-through for us on the indications made by the parent? That's my only question.

Okay. On the belt, certainly Timken had taken over a great brand, Carlisle, in the belt, and then they started manufacturing in US and then in Mexico, and then later on they found that the belt is not really pretty much augmentive to our new idea of tech motion.

They got rid of it. Then the automotive in US, they have looked at the portfolio, they have looked at 80/20, and we have capacities around the globe, that is on behalf of the parent, they have capacities around the globe, and then obviously they would like to use those capacities for their best portfolios.

Those lines, while they make the mass automotive, they can also make the limited industrial piece as well, and then those lines at time can be moved around and serve the market where there is better chance of making more money and things like that. As far as India is concerned, we are focused on what we do here.

Mobile is almost a 20% market for us, which is tractors, which is heavy truck. As we don't play the passenger cars, we don't do two-wheelers, three-wheelers, washing machine, which is essentially ball bearings, we don't do that, but we are focused on off-highway equipment, we are focused on backhoes, excavators, we are leaders in rail application in freight, etc., we'll remain focused on that.

Look at what assets can be further utilized for growth in India, hopefully.

Understood, sir. Thank you very much, sir.

Yeah. Hi.

Good evening, sir. Just a little follow-up on the previous question.

While you talked about the cost, you said in Q4 that of the total cost inflation in grinding wheels, coolant, etc., you had taken 10% of the required price hike. As of now, by end of Q1, how much price hike have you taken of the total cost inflation?

It is tough to tell you exactly percentage, different customers, different behavior, and one is the input cost, so that also has a different pattern and behavior. Then the customers, between off-highway to heavy truck to rail and other places, some are tender-based, some are where you have fixed contracts.

We are able to pass on certain level of cost escalation, especially in the heavy truck market. Railway is a fixed contract, so as we get into the new contracts, then that would start going in.

In the public sector units, we have annual rate contracts, or even in large cement plants, we have ARCs, and that cannot be violated, unfortunately. As new ARCs get made, then we'll try to pass on to them.

Heavy truck market, tractor, we are able to get largely our cost escalation into the pricing.

Maybe just one additional point there just to put the numbers into perspective. If you look at it, the gross margin for this quarter, we were at 39.9%, that is 100 basis point expanded year-over-year.

Just to give it a context, the quarter four of the financial year is always going to be a favorable mix for us from a margin standpoint. You may be seeing a flattish margin from a gross margin perspective sequentially, but technically the quarter one of the financial year are always unfavorable mix from a margin perspective.

You have an unfavorable mix, plus the Chairman whatever he has explained in terms of getting this price increases from heavy truck and off-highway customers has actually expanded the margin. That is why we have not eroded the margin, it was almost flat compared to sequential of last quarter, but 100 basis point expanded the same period of last year.

Got it, sir.

Secondly, for Q1 FY27, what was the manufactured versus traded mix? Also, you spoke on the Bharuch product ramp-up, can you tell us like, other than the utilization terms, can you tell us product-wise which product made the most headway, like large SRB or CRB or small SRB, like like that if you can give us some color?

That we explained, I think, from an utilization perspective, so as from the revenue perspective, as we speak, the SRBs are probably higher compared to the cylindrical roller bearing at this stage for Bharuch.

The manufactured versus traded mix for Q1?

It is almost in the similar range, I would say. Though we don't disclose, but I think whatever numbers we gave in the earlier quarters, it's almost in the similar range of 75/25.

Got it. Sir, for FY27, capex was 8% to 10% of sales, that was the indicative range given.

Any plan of exact capex how much it will be, and where it will be allocated to?

Again, plant-wise breakup we generally do not give. I think directionally it will be very similar numbers what you have explained.

Again, there are a lot of work it's happening. The as the Chairman explained, the rail plant is on track, the plain bearings, which is going on in our Bharuch factory, that's on track.

We are almost on track to the overall capex numbers. There may be a timing difference here and there in terms of this financial year, this financial year spilling over something to the next financial year, but from a project perspective, we are almost on track, and the capex should be in the similar range.

Sir. Got it.

Thank you, and all the best.

Thank you. Thanks a lot.

As we had indicated, we'll be closing it at 4:30 today because of an urgent customer visit on the campus. Thanks a lot, and if there are any further questions, we are always open on an email and things like that.

Take care, and God bless you all. Thank you.