Schaeffler India LimitedAutomobilesSCHAEFFLER
Q2 FY27 concall · earnings callSchaeffler India Limited
Schaeffler India is prioritizing domestic-led growth with 14% to 15% local expansion and about 80% localization, keeping exports at 15% to 20% while investing in automotive, railways and wind capacities.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Export share of business | 15% and 20% | — | |
| Domestic market growth | 14% to 15% | — | |
| Localization level | about 80% | — | |
| Export mix to China | 13% | — | |
| Railways share of revenue | 13% - 14% | — | |
| Automotive growth | 29% - 30% | — | |
| YTD June performance implies full-year revenue | ₹10,000 Cr | — | |
| Historical commodity cost recovery | 70% | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹2,136.06 Cr+14% YoY+0.9% QoQ | ₹237.28 Cr+13.2% YoY+0.4% QoQ | ₹15.20+13.4% YoY+0.7% QoQ |
| Q2 FY25 | ₹2,116.35 Cr+14.2% YoY+0.5% QoQ | ₹236.41 Cr+1.6% YoY-3.7% QoQ | ₹15.10+1.3% YoY-3.8% QoQ |
| Q1 FY25 | ₹2,106.84 Cr— YoY+12.5% QoQ | ₹245.45 Cr— YoY+11.7% QoQ | ₹15.70— YoY+11.3% QoQ |
| Q4 FY24 | ₹1,873.13 Cr— YoY-0.1% QoQ | ₹219.72 Cr— YoY+4.8% QoQ | ₹14.10— YoY+5.2% QoQ |
| Q3 FY24 | ₹1,874.55 Cr— YoY+1.1% QoQ | ₹209.61 Cr— YoY-9.9% QoQ | ₹13.40— YoY-10.1% QoQ |
TL;DR
- Exports diversified beyond Europe and expected to stay between 15% and 20% of business.
- Localization at about 80%, up from 60% - 65%, with automotive near 90% and industrial at 65% - 70%.
- Automotive grew 29% - 30% on GST 2.0 demand and IC-engine localization; e-axle in Phase 2 localization.
- Railways at 13% - 14% of revenue with double-digit growth; wind growth via larger bearings including 1.6-meter bearing for 6 megawatt.
- Commodity cost recovery historically 70%, with balance via efficiencies; YTD June trend points to crossing INR10,000 crores.
Said on the call
“We're so competitive. A lot of exports from India, bearings goes back to China today.”
From the Q&A
| Topic | What management said |
|---|---|
| Exports outlook and geography | Management said mix is 50% Europe intercompany, 25% Southeast Asia, rest China and Americas; export is not an explicit strategy and will stay between 15% and 20% as domestic market grows 14% to 15%. |
| Localization strategy | Management said localization rose from 60% - 65% to about 80%, with automotive at 90% and industrial at 65% - 70%; strategy is driven by customer and product need, with steel, wind and e-axle Phase 2 localization underway. |
| Automotive and e-mobility growth | Management said automotive growth of 29% - 30% was driven by IC-engine clutch and engine systems on GST 2.0 demand and localization, plus 300% jump in e-mobility from a small base on e-axle volumes. |
| Order visibility and demand | Management tracks order visibility over 1-3 years via probability-weighted pipeline and book-to-bill ratio above one; said domestic automotive demand remains intact with first-time car buyers overtaking repeat buyers. |
| Cost pass-through | Management said steel costs are indexed and passed through, other input and FX costs are negotiated, with historically about 70% recovered and 30% absorbed via efficiencies and localization. |
| Railways and wind | Management said railways is 13% - 14% of revenue with double-digit growth, driven by electrification, Vande Bharat upgrades and freight load increases; wind is indirect exports with 85% of turbine output exported. |
| Vitesco merger | Management said from customer perspective Vitesco portfolio is already offered through the listed company, but legal merger has no timeline due to 74.13% promoter holding constraint. |
Guidance
- Export share expected to remain between 15% and 20% as domestic base grows
- Domestic market growing at 14% to 15% for the company
- Continue localization in phased manner driven by customer strategy; Phase 2 of e-axle localization underway with production line being installed
- Expanding Shoolagiri with second hall focused on passenger vehicle transmission side and investing in railway and wind (Savli Hall 3) capacities
Source
Summary written from the transcript filed by Schaeffler India Limited for the call held on 28 Sept 2026; published 5 Oct 2026, 18:34 IST.
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