Schaeffler India (505790) Q2 25/26 earnings summary

Executive summary

• Q2 2026 revenue reached INR 26,814.1 million, up 17.5% YoY, with strong growth in Automotive Technologies, Vehicle Lifetime Solutions, and Exports.

• EBITDA for the quarter was INR 5,132 million (19.1% margin), and profit after tax was INR 3,367.3 million (12.6% margin).

• Earnings quality was impacted by increased input costs and geopolitical developments.

• Working capital increased due to higher inventories, with management planning recovery actions.

• Appointment of Mr. Amit Dinesh Bhalerao as COO and Senior Management Personnel effective August 10, 2026.

Financial highlights

• Standalone revenue for Q2 2026 was INR 26,814.1 million; consolidated revenue was INR 27,605.5 million, both up YoY.

• EBITDA margin for Q2 2026 was 19.1%; PAT margin was 12.6%; EBIT margin was 15.9%.

• Free cash flow declined 66.3% YoY to INR 965 million, mainly due to increased working capital and reduced earnings.

• CapEx for FY 2026 projected at INR 400–500 crore, with INR 175 crore spent in H1 and the remainder planned for H2.

• Net cash generated from operating activities for H1 2026 was INR 4,112.5 million (standalone) and INR 3,893.5 million (consolidated).

Outlook and guidance

• Management expects to recover free cash flow and working capital in the second half of the year.

• Export growth is expected to be maintained at 15–20%, though guidance remains cautious due to geopolitical risks.

• CapEx plans remain on track, supporting ongoing business expansion.