Schaeffler India Q2 FY2025-26 Results: Strong Profit Growth, Operational Efficiency, and Strategic Focus on Localisation

Mumbai, November 2025:
Schaeffler India Ltd., a leading global motion technology and automotive component company, announced its Q2 FY2025-26 financial results, showcasing steady revenue growth, improving margins, and consistent operational performance. Despite global headwinds, the company continues to post robust numbers, driven by localisation efforts, export expansion, and efficiency measures.

Let’s take a detailed look at the Q2 FY2025-26 results of Schaeffler India Ltd, along with a comparison against Q1 FY2025-26 and Q2 FY2024-25, followed by management guidance and key insights for investors.

📊 Schaeffler India Q2 FY2025-26 Financial Performance

Below is a detailed financial summary comparing Q2 FY2025-26, Q1 FY2025-26, and Q2 FY2024-25:

Particulars (₹ in Million)	Q2 FY2025-26	Q1 FY2025-26	Q2 FY2024-25	YoY Growth
Revenue from Operations	24,346.5	23,525.9	21,163.5	+15%
Profit Before Tax (PBT)	4,237.2	4,103.8	3,459.5	+22.5%
Net Profit (PAT)	2,892.6	2,871.1	2,364.1	+22.3%
Earnings Per Share (EPS)	₹45.6	₹45.1	₹37.2	+22%
Net Profit Margin	11.9%	12.2%	11.2%	Improved

Source: Company filings & public disclosures

💡 Key Highlights of Q2 FY2025-26 Results

1️⃣ Revenue Growth Driven by Automotive & Export Segments

Schaeffler India reported a 15% year-on-year increase in revenue, led primarily by strong performance in Automotive Technologies, Bearings & Industrial Solutions, and inter-company exports.

The Automotive Technologies division recorded robust growth with revenue of approximately ₹8,177 million in Q2 FY2025-26 compared to ₹6,350 million in Q2 FY2024-25.
Inter-company exports rose sharply by nearly 40%, reflecting the company’s increasing role in the global Schaeffler supply chain.

The company’s focus on localising production and reducing import dependency has been a key enabler of sustainable growth.

2️⃣ Profitability and Margin Expansion

Net profit surged by 22.3% YoY, significantly outpacing revenue growth. This indicates Schaeffler India’s improving operational leverage and cost discipline.

The Profit Before Tax margin improved from 16.4% in Q2 FY2024-25 to 17.4% in Q2 FY2025-26.
Input cost optimisation, supply chain localisation, and efficient working capital management contributed to the margin improvement.

3️⃣ Operational Efficiency and Localisation Strategy

Schaeffler India continues to strengthen its local manufacturing capabilities to enhance resilience and cost competitiveness. The company highlighted that “quality of earnings improved due to efficiency measures and concentrated efforts on localisation,” reaffirming its commitment to long-term value creation.

This approach not only supports profitability but also aligns with the ‘Make in India’ initiative, positioning Schaeffler as a key contributor to India’s manufacturing ecosystem.

4️⃣ Balanced Growth Across Business Segments

The company maintained balanced growth across its key divisions:

Automotive Technologies: ₹8,177 million (YoY growth ~29%)
Bearings & Industrial Solutions: ₹5,227 million (YoY growth ~2.5%)
Vehicle Lifetime Solutions: ₹3,534 million (YoY growth ~13%)
Inter-Company Exports: ₹2,393 million (YoY growth ~40%)

Such diversification mitigates risks associated with sectoral slowdowns and ensures consistent revenue generation from multiple segments.

🧭 Management Commentary: Steady Confidence Ahead

In the official press release, Mr. Harsha Kadam, Managing Director & CEO of Schaeffler India, shared:

“We registered higher revenue across all businesses and continued our trajectory of double-digit growth for the fifth consecutive quarter. Quality of earnings continued to improve due to efficiency measures and localisation focus. We remain committed to delivering strong results and creating value for our stakeholders as we progress through the year.”

The management’s focus remains on:

Sustaining double-digit growth momentum
Expanding localisation and product innovation
Enhancing manufacturing efficiency and digital integration
Strengthening exports and OEM partnerships

🌍 Industry Context: Auto Component Sector Outlook

The Indian automotive component industry is witnessing steady recovery, aided by:

Rising domestic auto production and aftermarket demand
Government incentives for manufacturing and exports
The shift towards electric and hybrid vehicles

Schaeffler India, with its advanced mobility solutions and diversified portfolio, is strategically positioned to benefit from this industry growth. Its e-axle solutions and EV-compatible components are already gaining momentum in the Indian and global markets.

📈 Investor Takeaways: What Makes Schaeffler India’s Q2 FY2025-26 Stand Out

✅ Strong Financial Health: Double-digit revenue and profit growth with consistent margin improvement.
✅ Operational Excellence: Continuous localisation drives cost savings and supply chain flexibility.
✅ Export Expansion: Rising inter-company exports demonstrate global integration and confidence from the parent group.
✅ Balanced Portfolio: Revenue evenly distributed across multiple business verticals.
✅ Long-Term Outlook: Positive sentiment in the automotive and industrial bearings sector supports future growth.

⚠️ Challenges & Risks Ahead

While the quarter’s performance is impressive, some cautionary factors include:

Rising input costs (steel, energy, logistics) could pressure margins.
Global demand fluctuations, especially in the European market, may impact exports.
Currency volatility (Euro-INR) can influence profitability.
Limited forward-looking guidance requires close monitoring of future quarters.

🔍 Analytical Summary

Parameter	Observation	Impact
Revenue Growth	Strong 15% YoY increase	Positive
Net Profit	+22.3% YoY	Positive
Margins	Improved QoQ and YoY	Positive
Localisation Strategy	Strong progress	Structural positive
Export Growth	Robust increase	Diversification benefit
Future Guidance	Neutral, limited details	Requires monitoring

🧩 Conclusion: Steady, Confident, and Well-Positioned

Schaeffler India Ltd. delivered a solid Q2 FY2025-26 performance, marked by 15% revenue growth and 22% profit growth, supported by operational excellence and a strong localisation push. The company continues to strengthen its manufacturing ecosystem and product innovation to align with India’s evolving mobility landscape.

For investors, the takeaway is clear — Schaeffler India is demonstrating consistent execution, financial discipline, and strategic clarity. As the automotive and industrial sectors continue their recovery, the company’s diversified approach and global backing make it one of the most reliable performers in India’s component manufacturing space.