Schaeffler India (505790) Q1 25/26 earnings summary

Executive summary

• Achieved robust revenue growth of 18.8% year-over-year in Q1 2026, reaching INR 2,507 crore (₹25,070 mn), with strong double-digit growth in Automotive Technologies, Vehicle Lifetime Solutions, and Exports, despite a 5.1% sequential decline.

• Maintained earnings quality through localization benefits, with localization reaching 80%, and capital efficiency, while successfully managing margin headwinds from supply chain disruptions and inflation.

• Unaudited standalone and consolidated financial results for the quarter ended March 31, 2026, were approved by the Board on April 29, 2026, with statutory auditors finding no material misstatements.

• Working capital levels remained stable, and capex investments were moderate and aligned with strategic framework.

• Secured multiple customer awards for innovation, quality, and strategic engagement across sectors including automotive, railways, power, and wind.

Financial highlights

• Q1 2026 revenue reached INR 2,507 crore (₹25,070 mn), up 18.8% year-over-year, with consolidated revenue at ₹25,856.4 mn; EBITDA margin at 19.3%, PAT margin at 12.8%.

• EBITDA stood at INR 483 crore (₹4,830 mn), up 18.6% year-over-year, with consolidated EBITDA margin at 19.1%.

• Profit after tax was INR 319.7 crore (₹3,197 mn), with basic and diluted EPS (consolidated) at ₹20.2, up from ₹16.1 in Q1 2025.

• Free cash flow for the quarter was INR 137 crore (₹1,369 mn), lower than the previous year due to market liquidity crunch.

• CapEx for Q1 2026 was INR 788 mn, representing 3.1% of sales, with full-year CapEx expected in the INR 400-500 crore range.

Outlook and guidance

• Management remains optimistic about sustaining growth in automotive and export segments, with a full-year export growth outlook of 10-12%.

• No formal revenue or margin guidance issued for CY 2027/2028, but commitment to deliver on targets remains.

• Committed to delivering results and driving long-term stakeholder value.

• CapEx for 2026 expected in the INR 400-500 crore range, with continued focus on capacity and localization.

• Figures for previous periods have been regrouped/reclassified for comparability; no material impact from these changes.