Schaeffler India Q2 FY27 results (Jul–Sep 2026) and concall

This was Schaeffler India's annual investor group meeting, held on 28 September 2026 and filed with the exchanges on 5 October 2026. It was Q&A only, and no quarterly revenue, EBITDA, PAT or margin figures were disclosed. The only quantified top-line signal came from CFO Hardevi Vazirani: 'based on YTD June performance, we will cross INR10,000 crores.' She added that a business of this scale 'can absorb cost of capital of new products easily.' Management said a book-to-bill ratio above 1 is its 'one true indicator' of continued growth, but did not disclose the actual ratio.

Automotive technologies grew 29-30%, and the CEO said 'a lot of it came even on the IC engine part.' He credited GST 2.0, which the government introduced last September, and BS-VI-driven demand for new clutch and engine systems. Localizing lines that previously relied on parts imported from Germany also helped. First-time car buyers overtook repeat buyers last month, a trend management called 'still intact, at least touch wood.' With the domestic market growing 14-15% for the company, management summed up: 'industrial is good, it's growing, but automotive is growing faster.'

E-mobility demand jumped about 300% on a very small base, driven by the coaxial e-axle used in the Harrier. That product is entirely Schaeffler's, including the power electronics, and was won before the Vitesco acquisition. The e-axle is currently 100% imported, and the CFO called it 'a low margin compared to ICE.' Localization is in Phase 2 (importing sub-components and assembling them locally, with the production line being installed); Phase 3 (local child parts) depends on supplier development. The end-of-line test line localized in Phase 1 can test 300,000 pieces against demand of only 85,000, and the CFO confirmed that group e-mobility is loss-making.

Management puts India's EV adoption at under 5% today, rising to only 15% by 2030-31. It projects hybrids, which were almost zero three years ago, at about 15% of the market by 2031. With no clear government policy, and with hybrids and ethanol blending in the mix, the market is fragmented, and an analyst cited a Bosch EV JV with Tata Auto components as rising competition. Schaeffler is 'betting on everything' and says it will shift investment toward whichever technology wins. At least two ICE engine and transmission lines are on their way to India. At the Shoolagiri greenfield site, a line is arriving from Europe and a second hall is being built for PV transmission, but the CEO gave no Phase 2 numbers. Vitesco's capabilities move the company from 400-volt to 800-volt systems, opening up commercial vehicles and electric buses.

Overall localization has risen to about 80%, from 60-65% three to four years ago. The CFO put automotive at 90%, although the CEO later said it is 'well above 95%'. Industrial is at 65-70%, and imports of finished bearing products are down to about 18-20%. Management sets no localization target and calls the number 'an outcome' of customer-driven decisions. Exports are mainly bearings: 50% go to European intercompany partners, 25% to Southeast Asia and the rest to China and the Americas, with 13% of exports going to China. The company has no explicit export strategy and builds capacity for local demand first. The CFO expects exports to stay at 15-20% of revenue as the domestic base grows.

The West Asia crisis is hurting industrial bearing export demand. On the automotive side it hits costs: fuel and LPG prices are up and suppliers have raised prices, which the CEO called a 'double whammy.' Steel is passed through via indexed formulas, but FX on imported child parts is 'very difficult to get a compensation' for as the INR has depreciated. Historically about 70% of cost increases are recovered, and the remaining 30% 'has to be adjusted with our own operational efficiencies, localization.' Customer negotiations are 'still work in progress', while management reported no price pressure so far in spherical and cylindrical bearings.

Railways contributes 13-14% of revenue, and the CFO expects double-digit growth for at least 6 months. Growth is driven by 100% track electrification, which uses insulation-coated traction motor bearings that Schaeffler makes 100% locally while peers import them. Vande Bharat upgrades and higher-load freight, such as Class K products, add to this. New railway production line capacities are 'on the way', though tender lumpiness 'will remain'. In wind, Schaeffler holds almost half the market share. About 85% of Indian turbine output is exported, mostly by European OEMs such as Siemens Gamesa, Vestas and Nordex. The company produced a 1.6-metre bearing for 6 MW turbines last quarter and is starting to build Hall 3 at Savli. Steel and cement are strong, but construction equipment was negative last year, mining 'has never picked up', and the company has no solar offering for India.

Customers do not see Schaeffler and Vitesco as two companies, because 'the entire decision-making, the leadership team, is all in the listed company.' New business wins will draw on the Vitesco portfolio, including battery management systems (BMS), NOx and knock sensors, control units and thermal management. Vitesco still supplies some sensors and control units to PV customers directly. Asked about a legal merger, the CEO said 'Your guess is as good as mine.' The CFO noted that the group is integrating 'a few dozen companies' worldwide and that, with Schaeffler already holding 74.13% and only 26% public, 'there has to be few steps before that', with 'No timeline as of now.' The group has humanoid-relevant capabilities (actuators, sensors, BMS, power electronics), but management sees no near-term production in India.