Thank you, Yusuf. Good evening, everyone.

Mukesh Saraf here from Avendus Spark. Appreciate everybody logging into this 4Q FY26 earnings conference call of Timken India.

From the management team, I'm pleased to host 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.

Koul for his opening remarks, post which we'll begin the Q&A. Over to you, sir.

Thank you very much. Thanks a lot.

Hello all, and a good evening. Thanks for joining today.

Obviously, it is always a pleasure and a privilege to welcome you all to the quarterly call so that we can discuss the results of the last quarter of the previous financial year and also the, the whole year a little bit as well. I'm pleased to report that FY26 has been another year of consistent and a little bit, if I can use the word, broad-based performance for Timken India.

We have delivered good healthy revenue growth, which was obviously driven by the strong demand in core industrial segments supported by good execution on our projects, and also some momentum we see in both domestic and the exports. Our fourth quarter performance remained very resilient despite the issues of, uncertainty in the microeconomics, and cost pressures are pretty significant, and, and then obviously, we are doing investments.

That also handed hand. Update on Q4 FY26: first time we crossed ₹1,000 crore in a quarter revenue, so that is a milestone, a first time for us.

Then revenue from operations stood at 10,731 million, reflecting a 14.2% growth over the same period last year. PBT for the quarter stood at 2,074 million, ₹207 crore.

PBT margin was at 19.3% compared to a little bit less in Q3 FY26 and 21% in Q4 '25. We had excluding one-time Baba adjustment impact in the previous year and a labor code-related impact in the current year.

PBT margin improved by around 10 basis points over the same period last year. The consolidated numbers, consolidated revenue from operations stood at 10,898 million for the quarter ended March 31st, '26, and 34,780 million for the whole year ended on March 31st.

Consolidated PBT stood at 2,120 million for the quarter and 5,826 million for the whole year. The full financial numbers closed the year with the all-time highest standalone revenue of 31,478, representing an 8.6% growth over last year, driven by growth, a little bit of good growth in domestic and export markets.

PBT stood at 5,304 million, almost a 3% increase over last year, with PBT margin at 15.5%, EBITDA at 18.7. Cash generated from operations at 4,374 million, improved from last year.

Capital advanced for the year at 2,972 million, which was 8.7% of the revenue. Very important operation and strategic updates: the board has approved the merger of Timken GGB with Timken India Limited.

This will help drive operational synergies, improved effectiveness, and reduce obviously overall cost. We have completed the investment towards the renewable energy initiatives, which will continue to do across all our plants, that would obviously support long-term power security, energy security, and cost optimization.

All lines at our new Bharuch plant have now been capitalized, and the plant continues to ramp up progressively. Massive PPAP work being done, and obviously, we have started shipping and selling out of that plant.

Investment towards rail expansion in Jamshedpur and plain bearing expansion at Bharuch continue to remain broadly on track. On the geopolitical front, the Middle East conflict did not have any significant financial impact on that quarter, just finished quarter.

However, as we enter the new financial year, we are beginning to see some inflation trends, as you must be fully aware. Input costs are going up, we are actually working on mitigation initiative, both in terms of cost reduction activities, efficiencies, and customer engagement, which is where we will recover the recover the the increases.

On the market outlook, global trends continue to remain uncertain, as we all know, and slower growth trends. Geopolitical developments are changing every day.

Trade tensions are very much there. Supply chain realignments are happening.

That sentiment is very much there. Despite the backdrop, demand across for most of the key segments continues to remain relatively stable.

Focus remains on obviously execution and efficiency, but the demand is pretty stable. That is the opening remarks, and I'm sure let us jump into the Q&A.

With me is Sujit Patnaik, our CFO, as well so that between us, we can handle the questions, if you may, please.

Good evening, sir. Thanks for your time as always.

Three questions. One, you did talk about RM inflation and obviously costs going up.

I'm just trying to understand in terms of price hikes, how much have you already tried to kind of take, how much more needs to be taken? In the context, which I would understand is that passing on price hikes would be relatively easier in the aftermarket channel and maybe more difficult with your OEM customer.

Just some color in terms of how much price hikes have been taken, need to be taken, and could there be some margin impact maybe in the next one or two quarters till all of that gets passed on?

Yeah. The cost increases are happening on many fronts.

Our steel has started showing the signs of cost changes. The knocks on the doors are happening, so that is going to come, and obviously, that gets passed on.

It has not come up yet in volume. Second is that any input which is generally our grinding wheel, coolants, everything has gone up.

This quarter, we are trying to pass it on. I should say that we have only begin passing it on.

We are at 10% currently. The massive work is underway.

Then There is an impact on currency as well, currency deterioration is there, though we import finished bearings for trading, but otherwise raw material also there is indirect little bit of impact because for making grinding wheels in India, something is coming from China or VCI packaging is coming from outside. On our cost passing, the exercise, both in terms of giving costs and taking the price, the job has started from middle of April in a very serious note, both of giving and collecting.

We are at a 10%, as we talk, 90% has to be achieved on realizing this price. It will happen over the next two quarters, this quarter and next quarter.

In case still there is volatility, then it might continue a little bit. As I speak, our sales head was at Pune at one of the large companies who we supply bearings, and obviously, everybody resists giving change of price.

We are in that super mode of passing it on. To your question, both in terms of giving and taking, we have obviously started giving.

On taking, we have still not achieved more than 10%, but we are on an overdrive on that, and we hope between this quarter and next quarter, we should be able to pass it on. Obviously, there is always this lag which happens with negotiations, and the automotive world, they will keep on dragging as much as they can, but it is going to be retrospective, hopefully.

From April 15th really, the whole thing of giving and also passing it on has begun.

Perfect. Second question, sir, on the domestic rail and the CV market, how are you seeing in terms of growth outlook really there?

Also on the export front, especially in the US geography, which is I think 50% of our exports. Are we seeing any pickup there?

Of course, the trade deal is still pending, but as and when that happens, I'm assuming it will help. Before that, in the interim, how are you seeing exports overall and specifically to the US?

Yeah.

On the Ankur, on the export side, the last quarter of last quarter of the last financial year, we did ₹222 crore, which was 21% of our pie, which was 222 crore compared to quarter three, the previous quarter, it was 160, 159.2 exactly. You can see there is definitely a quarter-over-quarter 40% jump, and I think year-on-year that jump is also, if you take the whole year, the jump is almost 66%.

You despite this trade deal not happening, there is definitely a pull from the North American market. There is we see that pull from the export.

We had a good quarter on exports. I would say if you see Q3 was 159 and Q4 FY25 was 133, we did 222.

That is that is a plus, a good guide there. On the rail, definitely this market, as I always say, is going to be slow and steadily.

There are always ups and downs. Sometimes there are delay from the Railway Board and sometimes the wagon builder has a delay.

All that, and then the cash in circulation between between the wagon builders and the railways. That would would remain, it would be slow and steady growth.

That is where we are. Rail for us in Q4 '26 was ₹278 crore, and and if you compare it to Q3 of FY 120 '26 was ₹128 crore.

That was obviously a jump on Q-over-Q, but Y-o-Y if you see, overall there was a de-growth, a slight de-growth there.

Got that. On CVs, Sanjay?

On CV, robust. CV is the market we play in commercial vehicles that is pretty good so far.

I think the mobile others for us, which CV and tractors are both put together, was ₹205 crore, which was actually a jump of quarter-over-quarter 22%. CV market is going to remain, I think, robust.

Obviously, we have some cyclicities there, there might be a little bit of dampening, but then catching up again. CV has remained in that condition in last few years a little bit not robust.

CV is okay, and we see it okay. Rail, we see steady, slow growth, so that also is very much there.

Overall the sentiment is domestic consumption is not bad despite the inflationary market situation, inflation, and cost pressures are there, but the local demand is okay. The export demand is also okay, and then the cost pressures are there.

I think that all is in one bag. Right.

Just a last question, if I may, on the Bharuch factory, where are we in terms of utilization? Where do we target to reach, say, over the next one year, say, end of FY27?

Also, if you could talk about your market strategy, how you're trying to gain market share here in the SRB, CRBs. Just some color there would be very helpful.

Thank you.

Yeah. On SRB, CRB, all our lines have been capitalized, so that is all done.

We are running the smaller lines, which we call up to 250. That we are running pretty full, actually, and we have already done Sujit, how much revenue we have generated till date

now? For the full year, it was almost ₹80 crore revenue coming out of the new plant.

₹80 crore coming out of the new plant for the full year. Now April onwards, it would be as we generate.

We have a robust PPAP going on. As we talk, we have almost more than 100 new part introduction underway in that plant.

As you know that we have to go through each part has to go through a proper PPAP, and we have to have Timken approvals, and then it has to go to the customer approvals. All our smaller lines of sphericals are running full.

On large line, PPAPs are happening. I think we are running more than a shift.

We have to do more PPAPs, which they are doing. On CRBs, again, PPAPs are happening, and we are running more than, I think, one shift there, closer to two shifts.

As Sujit just said, whole year last year, we did ₹80 crore, and then April onwards. On the general strategy, we are selling anyway to the metal industry, aggregate, material handling, our tapers and imported stuff.

Now with this, in fact, today morning only a cement customer was telling me that they see more life out of Timken bearing. We sell value, oil engineering.

We are pitching to all the customers where we are anyway selling tapers, whether it is cement, steel, or it is material handling equipment or the construction equipment. That is the target segment, and then obviously, exports as well.

I think out of that ₹80 crore, we did some exports as well.

Got that. Okay.

Great. Thank you so much, and all the best.

Thanks.

Hi, sir. Good evening.

My first question is that I just wanted to know the segmental breakup for Q4 and FY26.

Sure. Varun, Q4 FY26, rail was ₹278 crore, which was 26% of the pie; mobile, which is for us CV and tractors, was ₹205 crore, which was 19% of the pie; distribution, which was both industrial and aftermarket, more industrial, is ₹162 crore, was 15% of the pie; process industry, which is the heavy industry stuff, that was ₹200 crore, which was 19% of the pie; and intercompany was 222.5, which was 21% of the pie.

In total for the quarter was ₹1,073 crore. For the FY26 in totality, rail, we did ₹781 crore; mobile others, we did 681, rail was 23% of the total pie and mobile others, which is CV, tractors, et cetera, was 681, which is 20% of the pie; distribution was ₹582 crore, which is 17% of the pie; process was ₹651 crore, or 19% of the pie; intercompany, which is exports, is 707 crore, which was 21% of the pie.

In total was 3,419 cr.

Sir. Thanks.

That's very helpful. Sir, for this Jamshedpur CapEx, are we on line to go live with it in the December '26 quarter?

What is the revenue potential for it, what is the asset turns? I think we're investing ₹120 cr there.

What is the total overall CapEx guidance for '27?

Yes, we are roughly at ₹120-plus crore for CapEx. Last week, I was in Jamshedpur.

We should be able to produce by what, November this year?

By November this year, and then obviously, new line PPAPs and all that. December, we should start producing.

On terms of total asset turns, we are looking at two. Two to start with, and then we'll see, because these are all state-of-art robotics, imported assets, and highly precise, great for super precision high-speed railways for future as they come, and obviously, you can make slower rail bearings as well, but are capable to do the ultra-high speed for rail as well.

We should be able to produce the first rail bearing by hopefully by November and December. That is the target.

The machines are all getting shipped from Europe, and the building is getting ready, and all the assets regarding phosphating, et cetera, et cetera. We are in Jharkhand, getting all these approvals, all those are in place.

We have all the approvals now in place.

To your direct question, should be by December producing the bearings. Then the global rail markets, in fact, Africa rail looks pretty strong in coming months, so that is good.

America is also okay, and India is slow and steady growth. Hopefully, it is timed very right as we start producing.

Sir. Sir, of the total FY26 sales we have, what percentage of our sales have we produced locally in India as of now, and what is the localization target henceforth?

Out of that 3,413, I think 60-odd percent would be domestic 65 would be domestic, 35 would be imported. As you know that, you can't produce everything in India.

There are not thousands, lakhs of different part numbers. This 65/70 would be a good mix between, and we are also exporting almost similar, similar stuff, it generally remains a very good balance.

We are looking at different things. If the market remains growing, BIS gathers momentum, all that stuff is on our plate, but it was 65/35 if you take FY26, a percent here or there.

Sir. Just last one from me.

Any revenue growth and margin guidance for FY27, if you'd like to share?

Margins and revenue both, we want to be more than the market growth. On the top line, we want to be more than the market growth, and on the bottom line, obviously, there are pressures on the cost.

We are definitely going to pass them on. Then we are very good at continuous improvement in manufacturing, so that is there.

It should be healthy. We aspire for doing it better than before, but depending on what happens around us.

Sir, would it be a 10% revenue growth, that is the base case? Can I take that?

Would that be a fair assumption?

I don't think we can give you a percentage guidance, either on the bottom line or the top line. I can tell you, we will outgrow the market, so that is the maths you have to see.

Sure, sir. No problem.

Thanks a lot and all the best.

Thanks, Varun.

Hi, sir. Thank you for the opportunity.

Just on the CRB/SRB plant, right? Now incrementally going into FY27, how should we think about the ramp-up of this plant?

We ended at ₹80 crores, our target was to exit at 40-45% utilization levels. Which would not have happened, but how should we look at going into FY27?

Are we seeing good traction in that facility?

Yeah. I think with the PPAPs going on, we should be July-August, we should start seeing utilization of above 70%, and then with every passing month, it'll get better and better.

It is a long cycle, especially when you are supplying to the OEs. Not only will they PPAP, they might even ask for testing and things like that, and some of that parts might also go to the rail application.

There again, there is a huge process which we are already underway, but I think we would cross the 70% by July time frame.

The peak revenue would be what, ₹1,000 crores?

Revenue would be ₹1,000 crore. I wish it would be that much, but no, it won't be that much.

As we do the next quarter, the picture will be more clear.

No, no. As in the peak revenue potential.

Yeah. No, no.

The mix is different. Obviously, the mix plays a big role, and as I said, asset turns of two-ish, so that would be the math.

Generally, with the whole year depending on mix, we'll have to do the calculation, but won't be ₹1,000 crores.

Sir, as in you did a CapEx of ₹700 crores, if you're saying 2x, then the peak revenue potential, not I'm saying that you'll reach in '27, but then it is what north of ₹1,000 crores, is how we should look at it.

Yeah. Sujit, you want to say something?

You have to take the building out of that.

Yeah. I think in the last meeting, we have explained that as well.

The peak revenue would be very similar to what the Chairman explained in terms of the asset turns, right? That very close to 2x, he told in the past as well.

If you are specifically asking for financial year 2027, it's very difficult to estimate at this stage because there are multiple things that's happening in part ramp-up and the manufacturing space ramp-up, the customer approvals, on, forth. It may not be exactly possible to estimate at this stage, but yes, the peak revenue would be very close to the asset turn, which the Chairman explained.

What would be the CapEx for this plant ex of buildings and land, say out of ₹700 crores, what would be the CapEx for just machinery and all that on which we should then count the asset turns? Yeah.

If you take out, I think we explained in one of the earlier calls as well, total investment is roughly around ₹720-odd crore, including the forex and other stuff. It's not on top of my hand, and may stand corrected, but building was very close to I think 300, 350.

Yeah.

See, it was certainly ₹350 crore.

You can take. Yeah.

Around 3, I think. You can, just for rough calculation, the assets purely, obviously, it is not only the building, there is also air conditioning, other stuff.

Maybe 50%, you can take 300, 310, ₹320 crores.

In this facility, sir, is there a scope to further expand the capacity if required in the future years?

Yes. Yes, the building has been built for tomorrow.

Understood. The second question, just a clarification, the CapEx number which you guided for '27 is 150-odd crores.

Is that right or?

No, I think he explained about 120 crores.

₹120 for the rail.

Okay.

Okay.

What would be for '27?

Yeah. We don't give the guidance for CapEx, but if you look at it historically, for last year, 25-26, we spent roughly around 8.5% of our revenue.

That's very close to the CapEx spend. It will be almost in the vicinity of the same range

because

there are multiple expansion that's happening, Jamshedpur rail, then we are bringing in GGB, the plain bearings in our Bharuch factory, then there will be a little bit of heat treatment investment in the new plant. Put together, it will be very close to that number.

Similar lines.

8%, 9%, 10%.

Understood, sir. Thank you for this.

Thank you.

Thank you, sir, for the opportunity. Congratulations on the strong numbers.

Sir, firstly, for FY27, how is the traction and inquiries on the industrial bearings business in domestic and overseas markets, and which geographies are driving this in exports?

On the industrial side, when you say industrial, one is the OE pull and the other is the MRO pull. Steel MRO is a little bit slow, and you must have seen that the overall melt of last quarter was also a little bit lower than the previous quarters.

Cement MRO is pretty much good. Overall the sentiment in the OE side, which is because of the geopolitics, is a little bit wait and watch.

General statement is okay, it is not showing any signs of despair, if I can use that word. On exports, despite that the US treaty is not fully signed, dusted, but the flow is pretty okay.

North America, if we say our exports, North America is gaining momentum. Rest are also there, but main driver is North America.

The order book is healthy. Both domestic and export commercial vehicle is pretty much bullish, tractor is okay, rail is slow and steady is okay, MRO means the aftermarket is also okay.

Overall, for me, the current top three worries: demand is not a worry. Cost escalation and passing it on obviously is our top priority; ramping up Bharuch new plant, PPAP is second; and third is further projects of expansion.

Demand is not currently an issue, obviously, we want more and more, but it is not on the top three.

Noted, sir. Thank you.

That was helpful. Any change in the timeline for Bharuch ramp-up?

No, I think we are a little bit delayed. Obviously, we had massive rains last year in Bharuch that inundated the whole city there.

There were some issues because of that, and then there were some approvals. Overall, I say there was slight delay, but we are on a path, pretty good path.

As I said earlier, we have capitalized all our lines, which means they are all functional. Now we have to complete all the PPAPs.

The demand is now to the capacity utilization. As we speak, we are hiring more operatives for the plant, which tells you that we need more people to run more shifts.

By July onwards, I think we should be 70% of the utilization, then every month, it will become better and better. PPAP, because for every PPAP, you have to get all the toolings and then all the approvals.

That is massive work underway currently.

Noted, sir. Very clear.

Do you anticipate any revision in CapEx guidance for next three years with more products coming in?

There could be. We are always looking at, as earlier I think Rishi from Kotak asked that is this plant capable of handling more?

The answer: space is available, and we are only doing in the new plant a certain range of sizes which are not adequate for the whole market. Further range has to be brought in.

When we decide time is right, so that would happen. Similarly, if there is a chance to do any M&A, definitely, we always are on a lookout.

Then if there is a need to do anything more in our 0 to 8-inch, which is the traditional commercial vehicle, tractor, et cetera, those things are also currently actually under discussion. There might be a chance, but general Sujit just said that we would do 8-9% of our sales figure.

Then we are a debt-free company, we have the resources at hand. If there's a good project, we'll not shy away from investing.

Thank you, sir. On the Bharuch revenue, in Q3, the revenue was about 12 to 15 crore.

How much was the revenue in Q4, and also ramp-up cost had impacted 170 bps in Q3, was there any cost impact in Q4?

No significant impact. From a revenue perspective, of course, Q3 was lower one.

We were just ramping up of roughly around 12 crores of revenue. Q4, we had a step-up revenue.

The total revenue for Q4 was very close to ₹60 crore. That is how it made ₹80 crores for the full financial year.

Yes, we are still very close to the break-even. If you look at it, the ramp-up cost impact, what we had in the last quarter of 170 basis point, definitely that has gone down a bit.

We are still very close to the break-even, and the impact is not significantly higher specific to this quarter.

Thank you, sir. Just the last question.

On GGB, can you indicate how is the profitability for this entity?

Which one, GGB?

GGB.

Yeah. GGB, if you look at it, the results which we have announced, for the quarter, the revenue was ₹16.6 crores, and the profit before tax was ₹4.6 crores.

Very strong PBT at close to 30-32% level.

Thank you, sir. I'll fall back in the queue.

Very helpful.

Thank you, Raghu. Thanks a lot for your question.

Yeah.

Thank you very much. Sanjay, actually, I'm not going to ask anything on the technical front because you people are expert with this business and very big business.

I will only ask that dividend, last time you paid a good dividend, ₹36. This year, you are drastically reduced it.

We retired people depend on this type of dividend, if you pay more, we'll be very happy.

We paid last time, we paid how much, Sujit?

It's ₹36.

36. Did we announce this dividend of this year, which is 2.5.

Obviously, it is slight less than before, but once in a while, we take a mega dividend as well.

Not slight. 36

to 2.5. 36 to 2.5 is not [unclear].

No, no. I get your point.

It is 2.5 for the face value of 10, and before that was 3.6. Every three, four years, we do 50 in big range.

Saha, I thought your question will be for don't give dividend, invest and grow it more. We want to make sure that we leverage our cash to invest more rather than pay it to the banks as interest.

As you have not been investing in CapEx now very much, I would request you to consider more dividend in future, which is more dividend, at least 10%

in the past. Sure.

Absolutely. If you see our last five years, in that, at least once, we paid a mega dividend.

Your consideration and your question and suggestion is well taken.

Yeah. There is no problem.

You have been paying good amount. Periodic, instead of regular, if you make a stable payment, that will be better.

Okay. Okay.

Okay. Thank you so much.

Thank you.

We hear you.

Thank you.

Yeah. Hi.

Thanks for the opportunity. Just one question.

On this manufactured versus traded mix of 65/35, where do we see this number going in next two to three years given the thought process behind setting up this Bharuch facility was to replace the traded products that we used to import to Make in India and manufacture here in India? What this number should be in two, three years?

Yeah. Obviously, we are producing more and more, but then you see the overall pie is also increasing.

The pie is becoming bigger and bigger. If we were making selling only ₹500 crore a quarter, then this would have been different percentage.

As the Indian pie is also the bearing pie of India is increasing, and then also there's new application coming up. Say, for example, on wind, it used to be sub-megawatt, then 2-megawatt, then 3.

Now, a lot of 5-megawatt is coming up. I think this 65/35 or maybe some year 60/40, some year 70/30, depending on the pie and depending on the market, depending on the mix.

As I said earlier, Sabyasachi, that we cannot produce everything in India, though our desire would be to do 100% in India, but there are thousands and thousands and lakhs of different part numbers, application keep on changing. Unless there is a critical volume, we do not want to invest unnecessarily.

Currently, as I said that, all of a sudden, 5-megawatt is becoming very popular, which a lot of wind companies want to use. Putting up a plant for 5-megawatt is massive.

Then we have other sister plants which from which we can buy at competitive rates and sell in India. I would say to your question, though the desire is always that we want to make more and more, but given the market dynamics, business opportunities, diversion, and new growth in India, and India is obviously changing very fast.

I would say that 65/35 might be there for next two, three years easy, but the pie will keep on increasing.

Got it. Understood.

Just another question on the segments that we cater to: railways, mobile, process and automotive, industrial aftermarket, and of course exports. Which are the segments that you think would grow faster in the next one, two years?

Rail, you mentioned, it will be slow and steady, but how about the other segments? Where do you see faster growth next?

I think definitely given the fact that process industry would grow faster. India, just for the sake of it, general India is still $2 billion-$2.5 billion bearing market.

It is not a massive market like China, which is 20 billion. So, $2.5 billion ka market hai ye, and out of that, 65% is actually mobile, which means washing machines, refrigerators, two-wheelers, three-wheelers, passenger cars, and all that, then JCBs of the world, and the excavators and backhoe loaders of the world.

But 35% is only stationary equipment. Generally, in a mature market, it would be 50/50.

Process will definitely grow in India as people start investing more in steel, expansion of steel, and as they start putting up more cement in India, more power generation, whether it is wind, solar, and then if there is a need of massive material handling and things like that. Very soon, I am sure that West Bengal will see a big revision on industrialization.

Heavy industries, it is East India, heavy industries can easily come there, which are connected to the mining and all that stuff. Process is one area which is going to grow.

When the process will grow, distribution will also grow, because as you steel, as you produce more steel, more mining, more cement, et cetera, you'll consume more bearings. Rail would be slow and steady growth.

Mobile, truck is always, and same thing goes with tractors, monsoon, policies. Last two, four years, commercial vehicle was down, all of a sudden, we saw a nice uptick, and that would have it is cyclicity connected to different policies and the market conditions.

To your direct answer, definitely, process, distribution, these are going to be strong growth, followed by rail and followed by mobile and rail.

Got it. Understood.

Thanks for it. Okay.

Yeah. Thanks a lot.

I think the time is over. With that, I definitely want to say thanks, and we look forward to the next quarterly call, and hope we are again meeting on a good note next quarter.

Thank you very much. Thanks a lot.