Listed Bearings Makers Have a Strong Outlook

Earnings forecasts lifted for Schaeffler, SKF, and Timken

- RAM PRASAD SAHU

Bearings outperformed other segments in the auto component sector in the fourth quarter of 2024-25 (Q4FY25). Three major listed bearing biggies—Schaeffler India, SKF India, and Timken India (Timken)—saw their earnings get upgraded for FY26 and FY27 after the Q4 show, and the prospects for the sector going ahead.

The three stocks have generated higher returns than their peers and broader indices over the last three months, with Timken leading the chart, registering gains of 23.5 per cent. The average returns for the bearing companies over this period has been 20 per cent, which is twice that of the BSE 200 and BSE 500 indices. The BSE Auto index, too, has lagged behind them with returns of 12.7 per cent.

In Q4, aggregate revenues of bearing companies grew 9 per cent year-on-year (Y-o-Y), driven by strong growth in the railway segment (Timken), an uptick in the aftermarket division (Schaeffler and Timken), robust growth in two-wheeler production volumes (SKF), and a recovery in export revenue (Schaeffler), says Kotak Research.