Schaeffler India Delivers Robust Q2 FY26 Performance with Margin Expansion
About the company
Schaeffler India Ltd, a leading global motion technology company, manufactures precision-engineered components for the automotive, industrial, and mobility sectors. Known for innovation and strong R&D capabilities, it plays a key role in India’s evolving EV and manufacturing landscape. The company’s consistent operational discipline and capacity expansion have supported its margin stability and earnings resilience.
Financial highlights
| Parameter | Q2 FY26 | Q2 FY25 | Change (YoY) |
|---|---|---|---|
| Revenue (₹ Cr) | 2,435 | 2,116 | +15% |
| EBITDA (₹ Cr) | 456 | 369 | +24% |
| EBITDA Margin (%) | 18.73 | 17.43 | ↑130 bps |
| Net Profit (₹ Cr) | 289 | 236 | +22% |
The company reported strong double-digit growth in revenue and profit. Operational efficiency and a favourable product mix in automotive bearings and industrial segments supported the improvement in margins.
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Operational and segmental performance
Automotive contributed 58% of total revenue, driven by premium bearing demand and strong OEM orders. The industrial division maintained 42% share, with consistent performance in wind, steel, and construction sectors. Export demand from the EU and ASEAN markets remained stable. Management reaffirmed focus on expanding local manufacturing capacity and localization of high-value components.
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SWOT analysis
| Strengths | Weaknesses |
|---|---|
| Strong brand equity and diversified customer base across automotive and industrial segments. | High dependence on global raw material imports may affect margin stability. |
| Opportunities | Threats |
| Rising EV penetration and domestic manufacturing push offer scalable opportunities. | Volatility in steel prices and slowdown in global exports can impact revenue growth. |
Investment view
Short Term: Positive — steady demand and order inflow expected to sustain Q3 growth.
Medium Term: Strong — localization efforts and product innovation to enhance profitability.
Long Term: Positive — robust R&D, technology leadership, and strong industrial presence make Schaeffler India a consistent compounder.
Investor takeaway
Schaeffler India’s Q2 FY26 performance demonstrates its ability to sustain margin expansion and earnings growth despite input cost challenges. The company remains well positioned to capitalize on India’s industrial and EV growth story.
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Related queries on engineering stocks
- What Drives Schaeffler India’s Margin Expansion?
- How Does Localization Impact Schaeffler’s Profitability?
- Is Schaeffler India a Good Long-Term Investment?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
