Timken India Ltd Q1 FY27 Results Analysis: Revenue Surges 14.87%, EBITDA Margin Expands 94 bps

Timken India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 929.09 Cr (+14.87% YoY) and PAT growth of +10.46% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 14.87% to a record Q1 high, EBITDA margins expanded 94 bps from price pass-through and operating leverage. Depreciation from Bharuch capex and higher tax rate capped reported PAT growth at 10.46%, but normalized PAT rose 16.45%. Zero-debt balance sheet and ongoing capacity expansions (Bharuch ramp-up, Jamshedpur rail) position the company for sustained growth.

Key Investment Insights

Key Positives

• Revenue grew 14.87% YoY to Rs.929.09 Cr, highest-ever first quarter.
• EBITDA grew 21.01% YoY to Rs.172.24 Cr, with margin expanding 94 bps to 18.54%.
• Normalized PAT grew 16.45% YoY to Rs.111.76 Cr.
• Net material cost as % of revenue improved 97 bps YoY to 60.09%, indicating successful price pass-through.
• Zero-debt balance sheet with cash equivalents of Rs.268.5 Cr provides ample liquidity.
• Consolidated PAT includes Rs.4.53 Cr from subsidiary, which is profitable.

Risk Factors

• Depreciation surged 50.62% YoY to Rs.31.33 Cr due to Bharuch plant capitalisation, limiting PAT growth to 10.46% vs EBITDA growth of 21.01%.
• Effective tax rate jumped 333 bps YoY to 23.42%, reducing net profit growth.
• Other expenses grew 15.47% YoY, in line with revenue, indicating ongoing ramp-up costs from Bharuch.