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Analyst Meet / AGM
25-Feb-26
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Conference Call
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Schaeffler India
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Aims to step up capex to over Rs 500 crore in 2026
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Schaeffler India conducted a conference call on 25 February 2026 to discuss its financial results for the quarter ended December 2025. Harsha Kadam, MD&CEO of the company addressed the call:
Highlights:
The company has been able to demonstrate a sustained growth. The company continue to sustain a balanced mix of automotive OEM business and bearings and industrial business at 35% and 39% respectively. The aftermarket too has performed much better with 11% share of the total sales mix with export sustained at 15%.
The company has recorded strong growth in revenues at 26.9% yoy and 12% qoq to Rs 2643 crore in Q4CY2025. This strong volume growth resulted in a strong EBIDTA bringing in Rs 505.6 crore in Q4CY2025. The net profit has jumped to Rs 328 crore in Q4CY2025.
The company has strong focus on free cash flow generation which stood at Rs 250.4 crore for Q4CY25.
The company has absorbed the impact of new labour code at 0.8% of the revenues in Q4CY2025.
The company has reduced the working capital as a percentage to sales down to 17.9% in Q4CY25 much better than 19% in Q4CY24.
The company has been now value evaluated by S&P Dow Jones sustainability index score and ranked first in India and seventh globally as well.
GST 2.0 reforms have been a big boost for the automobile industry. The automotive sectors all segments have grown strongly riding on the back of the GST 2.0 reforms.
The capacity utilization in plants has been pretty robust and the company had all the plants running well above 85% capacity utilizations.
The company looks forward to a sustained growth and continue to deliver the strong results
The dividend has been well within targeted dividend payout ratio of 30-50%.
Awards
The company has continued to win award and during Q4CY25 the company won three awards from the customers and two awards for CSR activities. The first award is from industrial customer Voith for the best performance and continuous commitment to excellence with zero quality complaints in last 12 months.
The second award is from Eicher Motors in the aftermarket space for outstanding contribution in supply chain transformation wherein the company has made investments to ensure on-time deliveries to customer.
The third award is from Mahindra and Mahindra for on-time deliveries for the engine systems.
Order wins
The company is always prepared in terms of wining new businesses. The company achieved some good wins on passenger vehicle clutches and slidings. It has new business wins in the hydraulic cam phasers and clutches for light vehicle category.
Even in the vehicle lifetime solutions, the company had some strong wins on the front-end auxiliary drag mechanisms, the timing kits for the passenger vehicles. The focus continued on adding more products to the portfolio as more and more BS VI stage vehicles started to come back for repairs.
In the bearings and industrial solutions too, the company had significant business wins particularly in the product lines of ball bearings, needle roller bearings in the two-wheeler sector, needle bearings in offroad segment and four row and two rows critical roller bearings and the taper roller bearings specifically in the cement and the steel sectors.
The company continuously strive to secure new businessmen and the company had a very strong book-to-bill ratio. Going forward, the company remain focused on continue to create the pipeline and make the appropriate investments in production capacities.
Localisation
The focus on localization continue to march ahead. The localization has increased to 78% and the company will continue to localize and predominantly of focus is on the spherical bearings where the company see lot more potential.
The company look at the market dynamics and bringing the appropriate products into India for localization.
The relocation of the clutch line from UK to Hosur plant is done and the company is expecting full realization in 2026.
Exports
The exports number does not have wind in it. Sales to the wind customers is in domestic sales who export their products.
Wind business has grown quite significantly at 17-18% in 2025.
Exports growth for the company is coming from all the regions with Europe and Asia Pacific leading.
The company expects to benefit from India and European Union trade agreement to be signed specifically on import of raw materials and components. The duty is in the range of 7.5-15% on import of raw material, but the new rates have not been announced as yet.
Export order book for 2026 is in line with the last year. The company do not see the export growth momentum of 30-35% will continue. The company do not see that it will be more than 5-10% for CY2026.
Capex
The commitment to invest in capex continues. However, the company has reduced the capex for 2025 as the focus on was sweating of the assets that were already invested in last year.
The company is looking at stepping up capex again in 2026 to the average of previous three years levels over Rs 500 crore.
The capex for CY2025 was in the range of Rs 375-400 crore. The company will continue to invest in capacity for the products which are relevant for the market and new technologies that the market is expecting.
The company has always strived to deliver a double-digit growth.
Subsidiaries
KRSV Innovative Auto Solutions have generated improved revenues of Rs 81.5 crore in Q4CY25 in line with plan.
The company has done quite a good infrastructure setup of dark stores and hubs now and more focus will be on the channel and product mix from now onwards.
The company has three channels - wholesalers, retailers and workshops and it will be balancing channel mix. The company will be looking at the product mix based on different geographies.
The company is also expecting improvement in the financial parameters of KRSV. There is a clear plan as when to achieve break even.
On Vitesco Technologies front, the company has lot of plans in the battery management system. The company has started to consolidate and grow offerings with many OEMs. The Vitesco portfolio is very complimentary to mechanical product offerings taking the company on a stronger footing to give a much higher value ad to own customers.
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