Schaeffler India (505790) Q3 25/26 earnings summary

Executive summary

• Standalone Q3 revenue rose 27.4% YoY to ₹30,057.9 million, with broad-based growth across domestic and export businesses.

• Consolidated Q3 revenue was ₹30,894.2 million; Q3 revenue and earnings increased YoY on both standalone and consolidated bases.

• Input-cost inflation, higher working capital and e-mobility inventory build pressured margins and cash flow; Q4 priorities included recovery and control.

• The Board approved the unaudited standalone and consolidated results and appointed Joshi Apte & Associates as Cost Auditors for FY26.

Financial highlights

• Standalone Q3 revenue was ₹30,057.9 million, up 27.4% YoY and 12.1% QoQ; EBITDA before exceptional items was ₹5,617 million, up 18.0% YoY.

• Standalone Q3 PAT was ₹3,703.8 million, up 20.8% YoY; 9M revenue was ₹81,941.6 million and PAT ₹10,268.2 million.

• Consolidated Q3 revenue was ₹30,894.2 million and PAT ₹3,490.6 million; 9M revenue was ₹84,356.1 million and PAT ₹9,909.1 million.

• 9M standalone EBITDA was ₹15,579 million; 9M free cash flow was ₹2,742 million, versus ₹7,471 million a year earlier.

Outlook and guidance

• Q4 priorities were working-capital discipline and free-cash-flow recovery; management expected the Q3 e-mobility inventory build to be sold by December.

• Around 50% of raw-material inflation, equal to 1%-1.1% of quarterly sales, had been recovered; 80%-85% recovery was expected based on prior experience.

• Customers expected strong automotive demand to continue for at least some quarters of 2027; growth beyond that remained uncertain.

• Vehicle Lifetime Solutions was expected to maintain double-digit full-year growth; Q4 exports were expected slightly below Q3 absent a surprise in orders.

• CY 2026 CapEx of ₹500 crore was expected to be reached shortly; CY 2027-28 spending could average near or slightly above that level, subject to budgets.