Schaeffler India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Schaeffler India Ltd filed with BSE on 28 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Schaeffler India reported Q2 CY26 revenue of Rs 2,681 crores, up 17.5% year-on-year, with EBITDA of Rs 513 crores at a 19.1% margin and profit after tax of Rs 336-337 crores. Management attributed growth to Automotive Technologies, Vehicle Lifetime Solutions and exports, while Bearings and Industrial Solutions grew in single digits. Working capital rose due to planned inventory build-up, and management cited input cost increases, freight costs and foreign exchange as pressures on earnings during the quarter.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR 2,681 crores (Q2 CY26)
p. 5
“the revenue generation in the quarter was INR 2,681 crores, which is a clear 17.5% higher performance compared to last year.”
Harsha Kadam, page 5 of the filed PDF · View the filing
EBITDA: INR 513 crores (Q2 CY26)
p. 5
“we were able to deliver INR 513 crores at an EBITDA level in the quarter.”
Harsha Kadam, page 5 of the filed PDF · View the filing
Profit after tax: INR 336-337 crores (Q2 CY26)
p. 6
“resulting in a profit after tax of INR 336 crores or INR 337 crores, which is about 12.6% profit after tax.”
Harsha Kadam, page 6 of the filed PDF · View the filing
EBITDA margin: 19.1% (Q2 CY26)
p. 7
“what you see here is the EBITDA numbers, INR 513 crores coming into the system at 19.1% EBITDA”
Harsha Kadam, page 7 of the filed PDF · View the filing
Working capital: INR 2,029 crores (Q2 CY26)
p. 7
“our working capital has gone up to INR 2,029 crores.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Automotive Technologies growth: 33% (Q2 CY26 YoY)
p. 7
“the Automotive Technologies brought in 33% growth compared to year-on-year.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Vehicle Lifetime Solutions growth: 9.9% (Q2 CY26 YoY)
p. 7
“Vehicle Lifetime Solutions at 9.9%.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Exports growth: 24% (Q2 CY26 YoY)
p. 7
“our export business grew 24%.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Six-month revenue growth: 18% (H1 CY26 YoY)
p. 8
“our revenue growth is about 18% compared to the last year.”
Harsha Kadam, page 8 of the filed PDF · View the filing
Six-month EBITDA margin: 19.2% (H1 CY26)
p. 8
“resulting in a six-month EBITDA of 19.2% and an EBIT margin of 15.8%.”
Harsha Kadam, page 8 of the filed PDF · View the filing
KRSV (Koovers) revenue growth: INR 79 crores (Q2 CY26)
p. 8
“the KRSV or Koovers, as we call it, registered a revenue growth of INR 79 crores in the quarter.”
Harsha Kadam, page 8 of the filed PDF · View the filing
Consolidated revenue: INR 2,760 crores (Q2 CY26)
p. 8
“the revenue generation has been INR 2,760 crores at an EBITDA of 18.5% and an EBIT of 15.2%.”
Harsha Kadam, page 8 of the filed PDF · View the filing
Wage increase: 10% (Q2 CY26)
p. 11
“On wage increase, we have seen average of wage increase of 10%.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Industrial (BIS) segment growth — double-digit growth rate
stated as an aspiration by Harsha Kadam
p. 9
“our aspiration is to make sure the industrial business too gets to a double-digit growth rate, yes.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Export share of revenue — about 20% of max exports
stated firmly by Harsha Kadam
p. 10
“we said our wish is to contain the exports up to about 20%.”
Harsha Kadam, page 10 of the filed PDF · View the filing
Export growth momentum — close to 15% - 20% growth · FY26
stated conditionally by Hardevi Vazirani
p. 10
“While all-round efforts will be done to sustain this level of momentum close to 15% - 20% growth, but you never know.”
Hardevi Vazirani, page 10 of the filed PDF · View the filing
Price corrections from customers — second half of the year
stated conditionally by Hardevi Vazirani
p. 11
“very likely in second half of the year, we will see some traction on price corrections and other is on steel price indexation.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
Capex for CY26 — INR 500 crores · CY26
stated firmly by Hardevi Vazirani
p. 15
“in the remaining period, we are expecting that we will be consuming the remaining of INR 500 crores.”
Hardevi Vazirani, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said core sectors performed well, some impact came from wind energy contract timing, and the aspiration is for the segment to reach double-digit growth.
Answered by Harsha Kadam
Asked by Harshit Patel: Is the industrial (BIS) portfolio recalibration complete and when will it return to double-digit growth?
p. 9
“So, our aspiration is to make sure the industrial business too gets to a double-digit growth rate, yes.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Management attributed the growth mainly to intercompany allocation from localized capacities in India and favorable FX in non-rupee billing regions, while cautioning on future guidance due to geopolitical risk.
Answered by Hardevi Vazirani
Asked by Harshit Patel: What is driving the export outperformance versus guidance, and will guidance be revised?
p. 10
“Yes, it is mainly because of intercompany allocations.”
Hardevi Vazirani, page 10 of the filed PDF · View the filing
Management cited capacity constraints that force prioritization of OEM demand over aftermarket, along with local supply chain development still in progress.
Answered by Harsha Kadam
Asked by Raghunandhan N. L.: Why did aftermarket (VLS) growth slow to 9.9% from historical 20%+ levels?
p. 11
“What we are seeing is some capacity constraints that we have, which is something that is currently being addressed as I speak.”
Harsha Kadam, page 11 of the filed PDF · View the filing
Management explained that wage code increases and certain input costs are not covered by indexation mechanisms with OEMs, and reimbursement is unlikely; the company must instead absorb costs through productivity measures.
Answered by Hardevi Vazirani
Asked by Raghunandhan N. L.: How is the company managing commodity cost pass-through and wage hikes with OEMs?
p. 11
“it is very unlikely that the customer will reimburse, this customer would expect that we are doing some productivity measures, VA/VE, etcetera, to absorb such kind of cost.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
Management said intercompany export pricing follows arm's-length transfer pricing trued up annually per OECD guidelines, while OEM cost recovery depends on indexation mechanisms that exclude items like Labor Wage Code increases.
Answered by Hardevi Vazirani
Asked by Mukesh Saraf: How does pricing and cost pass-through work across export, OEM and aftermarket segments?
p. 12
“when we talk about the intercompany exports, it is at arm's length pricing principles. Transfer prices are determined and that true-up is done at end of the year in December.”
Hardevi Vazirani, page 12 of the filed PDF · View the filing
Management attributed the change to a new sales cutoff accounting policy and a new founders' bonus provision impacting EBITDA.
Answered by Hardevi Vazirani
Asked by Varun Jain: Why did KRSV (Koovers) standalone EBITDA margin change quarter-on-quarter?
p. 15
“we have started making the provision for founders' bonus, which is to be paid next year in the month of May for 3 years, which is leading to this level of margin change.”
Hardevi Vazirani, page 15 of the filed PDF · View the filing
Management said growth came from both the conventional ICE business growing near 20% and e-mobility, and clarified the passenger vehicle share gain was due to market share rather than higher content per vehicle.
Answered by Hardevi Vazirani
Asked by Varun Jain: What is driving strong Automotive Technologies growth and is it sustainable?
p. 15
“Automotive Technologies, overall growth rate for -- if we see year-on-year quarter is 33.3%.”
Hardevi Vazirani, page 15 of the filed PDF · View the filing
Risks flagged
Weak monsoon performance could affect the tractor business
p. 5
“this is something that now we have to monitor closely due to the not so good performance of the monsoon is what we are hearing.”
Harsha Kadam, page 5 of the filed PDF · View the filing
Input cost increases from LPG and oil prices not yet compensated by customers
p. 6
“some of the adverse situations that we faced with the LPG and the oil prices going up, our input costs have gone up, which is yet to be compensated by the customers, which we are still in discussions with them.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Freight cost increases impacting the bottom line
p. 6
“some freight cost increases, which have impacted the bottom line here and some of the IT costs that came in, in the quarter as such.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Foreign exchange effect impacting earnings quality
p. 7
“We did get impacted on the foreign exchange effect route as well, input cost route and both these have impacted to a certain extent, our bottom-line performance.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Wind energy segment impacted by contract negotiation timing
p. 14
“Yes, we are going through some contract negotiations with some of our customers there. And these are global contracts that we get into. So, wind energy has seen a dip in terms of revenue in the second quarter for us.”
Harsha Kadam, page 14 of the filed PDF · View the filing
Capacity constraints limiting ability to meet aftermarket demand alongside OEM demand
p. 11
“invariably in a high-growth situation, the OEMs end up getting the priority and the VLS kind of takes a second preference.”
Harsha Kadam, page 11 of the filed PDF · View the filing
Geopolitical disruptions creating uncertainty for export guidance
p. 10
“We will be careful in future guidance due to the ongoing geopolitical disruptions.”
Hardevi Vazirani, page 10 of the filed PDF · View the filing
General geopolitical and supply chain challenges expected to continue
p. 9
“more challenges are visible on the horizon.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.