Schaeffler India Ltd — Q2 FY27 earnings call
Summary generated by AI from the official transcript Schaeffler India Ltd filed with BSE on 05 Oct 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
Management described export mix, localization strategy, and growth across automotive, industrial, railways and wind segments during an investor group meeting. They discussed the Vitesco integration status, e-axle localization phases, and the impact of GST 2.0 on automotive demand. Management also addressed cost pass-through dynamics, competitive positioning in EV and humanoid-related technologies, and segment-level growth expectations.
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
Exports: INR 350 crores to INR 400 crores (end of year)
p. 3
“Because that's what keeps us at INR 350 crores to INR 400 crores at the end of the year.”
Questioner, page 3 of the filed PDF · View the filing
Export share of revenue: 50% to Europe intercompany partners, 25% Southeast Asia, remaining China and Americas
p. 3
“Currently on exports, our mix is like 50% is to Europe intercompany partners and 25% is Southeast Asia, and the remaining is China and Americas.”
Hardevi Vazirani, page 3 of the filed PDF · View the filing
Localization percentage: 80%
p. 4
“today we are hovering at about 80%, which means 80% of our need we locally produce is proof enough that our localization strategy is the prevalent strategy.”
Harsha Kadam, page 4 of the filed PDF · View the filing
Automotive technologies growth: 29% - 30%
p. 5
“So if you see 29% - 30% growth in the automotive space, correct, a lot of it came even on the IC engine part.”
Harsha Kadam, page 5 of the filed PDF · View the filing
E-mobility demand growth: 300%
p. 6
“so that's why you would find a 300% good jump in demand, because the main factor obviously being, my customer's product is doing very well in the market.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Commodity cost recovery via pass-through: 70%
p. 8
“Historically, usually 70% is recovered.”
Hardevi Vazirani, page 8 of the filed PDF · View the filing
Railways revenue share: 13% - 14%
p. 11
“Continues to be around 13% - 14% of our revenue.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
Railways growth: double-digit growth (at least 6 months)
p. 11
“And double-digit growth, at least, 6 months.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
Wind export share consumed outside India: 85%
p. 11
“Our Wind customers themselves, all the wind turbine manufacturers and the gearbox manufacturers, 85% of their production they export.”
Harsha Kadam, page 11 of the filed PDF · View the filing
Automotive localization: 90%
p. 16
“And within that, automotive is already at 90%.”
Hardevi Vazirani, page 16 of the filed PDF · View the filing
Industrial localization: 65% - 70%
p. 16
“Within industrial, we are close to 65% - 70%.”
Hardevi Vazirani, page 16 of the filed PDF · View the filing
Import content of industrial finished products: 18-20
p. 16
“Import of finished products, currently, I think we're down to about 18 - 20.”
Harsha Kadam, page 16 of the filed PDF · View the filing
Automotive localization content: well above 95%
p. 19
“our localization content in automotive space is well above 95%.”
Harsha Kadam, page 19 of the filed PDF · View the filing
EV adoption rate in India projected: 15% (2030-31)
p. 14
“And our research data shows that by the year 2030-31, India will still be only 15% adoption, 15 still a small number.”
Harsha Kadam, page 14 of the filed PDF · View the filing
Revenue milestone: INR10,000 crores (YTD June)
p. 17
“And based on YTD June performance, we will cross INR10,000 crores.”
Hardevi Vazirani, page 17 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.
Export share of business — 15% to 20%
stated as an aspiration by Hardevi Vazirani
p. 3
“so with this higher base at the local market, we expect that export will continue to be between 15% and 20%.”
Hardevi Vazirani, page 3 of the filed PDF · View the filing
Localization strategy
stated firmly by Harsha Kadam
p. 4
“Obviously, we are going up, means it's only one direction, keep increasing.”
Harsha Kadam, page 4 of the filed PDF · View the filing
Hybrid market share — about 15% of the market · by 2031
stated as an aspiration by Harsha Kadam
p. 14
“Hybrid, which was almost zero, is today we are projecting it will be at about 15% of the market by 2031, which is equal to electrics.”
Harsha Kadam, page 14 of the filed PDF · View the filing
Vitesco legal integration
stated conditionally by Hardevi Vazirani
p. 10
“No timeline as of now.”
Hardevi Vazirani, page 10 of the filed PDF · View the filing
Wind Hall 3 investment
stated firmly by Hardevi Vazirani
p. 12
“And in Savli, we are also starting to build Hall 3.”
Hardevi Vazirani, page 12 of the filed PDF · View the filing
ICE/transmission production lines — two production lines
stated firmly by Harsha Kadam
p. 15
“I did talk about We are having at least two production lines for the ICE engine application, not just the engine, but the transmission application, on its way to India.”
Harsha Kadam, 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 export mix is diversified across Europe, Southeast Asia, China and Americas, and expects export share to remain between 15-20% as domestic market grows.
Answered by Hardevi Vazirani
Asked by Questioner: What is the outlook for exports given geopolitical tensions?
p. 3
“We don't say that the same momentum will continue forever, or even we are not focusing that share of business of export will be 25% - 30%.”
Hardevi Vazirani, page 3 of the filed PDF · View the filing
Management said localization is not an explicit target but an outcome of following customer and market strategy.
Answered by Harsha Kadam
Asked by Questioner: Is there a localization target over the next 4-5 years?
p. 4
“We don't set a target for localization? Localization number is more of an outcome of where we have reached.”
Harsha Kadam, page 4 of the filed PDF · View the filing
Management explained a probability-based tracking system for new business wins and a book-to-bill ratio metric used to gauge future growth.
Answered by Harsha Kadam
Asked by Questioner: How far ahead is order visibility?
p. 6
“So, which is a metric we use to measure, which confirms, if I continue to keep my book-to-bill ratio above one, above one, that means, I will continue my growth story the way I am growing.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Management said the conflict mainly affects industrial export costs, not automotive demand, and that input costs like fuel have risen.
Answered by Harsha Kadam
Asked by Questioner: How has the West Asia conflict and tariffs affected costs and demand?
p. 7
“The West Asia crisis is more impacting our industrial side of the export business, because our exports are predominantly bearings.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Management said steel cost pass-through is indexed and largely recovered, while other input costs including FX are harder to recover, with about 70% historically recovered.
Answered by Hardevi Vazirani
Asked by Questioner: What proportion of commodity cost increases are passed through to customers?
p. 8
“Historically, usually 70% is recovered.”
Hardevi Vazirani, page 8 of the filed PDF · View the filing
Management said there is no fundamental hurdle but legal integration requires steps given the listed company structure, with no set timeline.
Answered by Hardevi Vazirani
Asked by Questioner: What is the status of the Vitesco-Schaeffler India merger?
p. 10
“As such, fundamentally, there is no hurdle.”
Hardevi Vazirani, page 10 of the filed PDF · View the filing
Management attributed growth to electrification of locomotives, insulation-coated bearing capability, and new product portfolios like Class K for freight.
Answered by Harsha Kadam
Asked by Questioner: What is driving Railways demand - new products or replacement?
p. 10
“So, the electric locomotives, with the electrification, I think we have benefited well and we continue to grow on that.”
Harsha Kadam, page 10 of the filed PDF · View the filing
Management acknowledged the FX risk from imported e-axle kits and described a phased localization plan to reduce it over time.
Answered by Hardevi Vazirani
Asked by Questioner: Could new EV/e-axle import content create margin risk due to FX exposure?
p. 15
“Yes, so it's a low margin compared to ICE, of course, but then unless and until you reach those volumes and localize, you have to take that risk.”
Hardevi Vazirani, page 15 of the filed PDF · View the filing
Management said no pricing challenges have been experienced, with more opportunity seen in further localization of large cylindrical bearings.
Answered by Harsha Kadam
Asked by Questioner: Is there price pressure in spherical and cylindrical bearings due to competition?
p. 19
“Not that we have experienced any challenges there.”
Harsha Kadam, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical tensions and West Asia conflict affecting industrial export costs and input prices
p. 7
“The West Asia crisis is more impacting our industrial side of the export business, because our exports are predominantly bearings.”
Harsha Kadam, page 7 of the filed PDF · View the filing
FX impact from imported components due to INR depreciation
p. 7
“the effects impact will be hurting now with the way INR has depreciated, right?”
Harsha Kadam, page 7 of the filed PDF · View the filing
Pure export strategy risk from geopolitical disruption leaving production lines idle
p. 5
“Another war breaks out and then you have a drop in demand, I will have a production line standing idle, no demand in India.”
Harsha Kadam, page 5 of the filed PDF · View the filing
Construction equipment sector growth was negative last year
p. 9
“Unfortunately, we saw last year it didn't grow. It was negative, by the way.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Mining sector has never picked up due to government policy constraints on leases
p. 9
“Mining is a sector which has never picked up, but again, that's to do with the policies of the government, because unless they open up leases, it won't happen, right?”
Harsha Kadam, page 9 of the filed PDF · View the filing
Low profitability and high import content for emerging EV e-axle business
p. 15
“Yes, so it's a low margin compared to ICE, of course, but then unless and until you reach those volumes and localize, you have to take that risk.”
Hardevi Vazirani, page 15 of the filed PDF · View the filing
Fragmented EV/hybrid/ICE market due to lack of clear government policy
p. 14
“There's no clear policy, government policy. Like the West took a decision, it's battery electric vehicles.”
Harsha Kadam, page 14 of the filed PDF · View the filing
EV charging infrastructure limitations slowing adoption
p. 18
“India, 200 kilometers, you will have to think twice. I don't know whether it is there. So, it's a big challenge on the infrastructure.”
Harsha Kadam, page 18 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.
Continue reading
More Q2 FY27 earnings calls, in alphabetical order