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    Schaeffler India

    SCHAEFFLER
    Automobile and Auto Components·30 Apr 2026
    Management Summary

    Schaeffler India reported strong Q1 CY26 results with double-digit YoY growth in revenue and PAT, driven by robust performance in Automotive Technologies and exports. Despite QoQ declines and supply chain challenges, the company maintained healthy margins and achieved 80% localization. Management highlighted intensifying competition and a liquidity crunch in the industrial aftermarket.

    Highlights

    6

    • Revenue of INR 2,507 crores, up 18.8% YoY.

    • EBITDA margin at 19.3%, with EBITDA of INR 483 crores.

    • Profit After Tax (PAT) of INR 319.7 crores, up 12.8% YoY.

    • Automotive Technologies segment showed strong growth of 30.8% YoY.

    • Exports posted robust growth of 32.5% YoY.

    • Localization levels reached 80%.

    Concerns

    5

    • Revenue dropped 5.1% QoQ compared to Q4 2025.

    • EBITDA saw a 4.5% drop QoQ.

    • Bearings and Industrial Solutions segment experienced a significant 14.3% drop QoQ.

    • Liquidity crunch in the aftermarket industrial business led to demand slowdown.

    • Supply chain headwinds due to Middle East crisis impacted fuel costs.

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue₹2,507 Cr+18.8%YoY
    2. 02EBITDA₹483 Cr+18.6%YoY
    3. 03EBITDA Margin19.3%
    4. 04PAT₹319.7 Cr+12.8%YoY
    5. 05PAT Margin12.8%

    Segment breakdown

    Share of SalesYoY GrowthQoQ Drop
    Automotive Technologies37%30.8%-1.3%
    Bearings and Industrial Solutions35%4.2%-14.3%
    Vehicle Lifetime Solutions12%18.1%-0.6%
    IC Exports16%32.5%—
    Heatmap· 3 shared metrics

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹80 crores this quarter · ₹500 crores (CY26) planned

    raised — picking up from rationalized spend last year

    Liquidity

    Liquidity disclosed

    Positive free cash flow into the system of INR 137 crores in Q1 CY26, compared to INR 237 crores in Q1 last year.

    Guidance & targets

    2
    CategoryTargetPriority
    Capex
    Total Investment
    INR 400-500 crores
    		High
    Volume
    Export Growth
    10-12%
    		Medium

    Impact of Cost Increases & Customer Compensation

    next quarter
    CurrentEarly days (1.5 months) since inflationary increases, exploring alternate sourcing, stocking, and customer compensation.
    TargetSuccessful adjustment of cost increases or accommodation/compensation from customers.

    Why it matters

    The ability to mitigate rising commodity costs and secure customer compensation will directly impact future margins.

    I guess time will tell us how successful we will get in terms of adjusting these cost increases or accommodating these cost increases or getting compensation for these cost increases. (Page 9)

    How to verify

    key_financials.metrics[label='EBITDA Margin']

    Risks & concerns

    4
    RiskSeverity

    Supply Chain Disruptions

    Geopolitical conflicts in the Middle East and West Asia led to choking of supply chains for fuel items like LPG and propane, increasing input costs. — Management acknowledged

    medium

    Liquidity Crunch in Aftermarket Industrial Business

    A liquidity crunch in the market impacted cash flows to distributors, leading to a slowdown in demand offtake in specific industrial sectors. — Management acknowledged

    medium

    Increased Competitive Intensity

    Competition is intensifying in India, particularly in the bearings segment, necessitating portfolio recalibration to maintain profitability and growth. — Management acknowledged

    medium

    Commodity Price Volatility

    Increased prices for fuel items (LPG, propane) due to supply chain issues, with the company exploring mitigation strategies like alternate sourcing and customer compensation. — Management acknowledged

    medium

    Q&A highlights

    8

    “As we see, we do not see major concerns in terms of delivering the numbers that we are committed to deliver this year. Of course, it would require a lot of monitoring as well as agility on our part.”

    Analyst sought clarity on the industrial segment's future performance, especially for key sub-sectors like wind and railways, given current economic conditions.

    asked by Raghunandhan

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 CY26 Performance Overview

    Schaeffler India reported robust Q1 CY26 results with revenue of INR 2,507 crores, marking an 18.8% YoY growth, despite a 5.1% QoQ decline. EBITDA stood at INR 483 crores (19.3% margin), growing 18.6% YoY but dropping 4.5% QoQ. Profit After Tax (PAT) was INR 319.7 crores (12.8% margin), up 12.8% YoY, reflecting a marginal QoQ drop. The company also generated INR 137 crores in free cash flow during the quarter.

    02

    Awards and Accolades

    In Q1 2026, Schaeffler India received six prestigious awards from its customers. These included the John Deere Partner Level Excellence Award for strong engagement in transmissions, TVS Mobility for strategic partnership in Vehicle Lifetime Solutions, and Rail Analysis for innovation in underframe components for Indian Railways and Metros. Other recognitions came from Adani Power for innovative products in thermal power plants and ELIN for outstanding contributions to the wind sector.

    03

    Economic and Industry Outlook

    The overall economic outlook for India in Q1 CY26 was characterized by resilient domestic growth, despite geopolitical conflicts and trade pressures. Core industrial sectors, including cement, steel, electricity, fertilizers, and coal, showed positive growth in January 2026. The automotive sector demonstrated robust traction, with 2.5 million two-wheelers and over 0.5 million passenger vehicles produced in March alone, indicating a strong growth story for India's auto industry.

    04

    Business Segment Performance

    Automotive Technologies, encompassing ICE and e-mobility, showed strong performance with 30.8% YoY growth, contributing 37% to total sales. Vehicle Lifetime Solutions also posted robust double-digit growth of 18.1% YoY, accounting for 12% of sales. Bearings and Industrial Solutions, representing 35% of sales, grew 4.2% YoY but experienced a significant 14.3% QoQ drop due to recalibration efforts and market liquidity. Exports were a strong performer, growing 32.5% YoY and 6.6% QoQ, making up 16% of total sales.

    05

    Localization and Supply Chain Management

    Schaeffler India has achieved 80% localization, driven by efforts to be closer to customers and optimize its product and market mix. The company is actively developing local suppliers for e-axle components as part of Phase 2 localization, aiming to source more child parts from within India. Despite supply chain headwinds from the Middle East crisis impacting fuel costs, the company implemented crisis management meetings, explored alternate sourcing, and stocked up on items to maintain supply chain integrity.

    06

    Capital Expenditure Plans

    The company invested INR 80 crores in Q1 CY26, representing 3.1% of sales. For the full calendar year 2026, Schaeffler India plans capital expenditure in the range of INR 400-500 crores. This indicates a strategic ramp-up in investments compared to the previous year's rationalized spend, with a focus on continuing investment initiatives as customer projects evolve and market demand dictates.

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