Schaeffler India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Schaeffler India Ltd filed with BSE on 06 May 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 Q1 CY26 revenue of Rs 2,507 crores, up 18.8% year-on-year but down 5.1% quarter-on-quarter, with EBITDA of Rs 483 crores at 19.3% margin and profit after tax of Rs 319.7 crores, up 12.8% year-on-year. Management attributed the sequential revenue decline to deliberate cost-correction and portfolio calibration exercises in the Bearings and Industrial Solutions business, alongside a liquidity crunch affecting aftermarket distributor demand. Exports grew 32.5% year-on-year and Automotive Technologies grew 30.8% year-on-year, while localization levels reached 80% of total revenue.
Numbers mentioned
Revenue: INR 2,507 crores (Q1 CY26)
p. 5
“we have been able to post a robust growth performance and delivered INR 2,507 crores in the first quarter, which was a clear 18.8% more than Q1 2025.”
Harsha Kadam, page 5 of the filed PDF · View the filing
EBITDA: INR 483 crores at 19% margin (Q1 CY26)
p. 5
“we have been able to deliver INR 483 crores in the quarter and staying at 19% EBITDA.”
Harsha Kadam, page 5 of the filed PDF · View the filing
Profit after tax: INR 319.7 crores (Q1 CY26)
p. 5
“The profit after tax, bringing in INR 319.7 crores, again, remaining compared to the first quarter, which was 12.8%”
Harsha Kadam, page 5 of the filed PDF · View the filing
Automotive Technologies revenue growth: 30.8% YoY (Q1 CY26)
p. 6
“The first quarter performance grew by 30.8% when compared to Q1 2025, while over the preceding quarter, we did have a marginal drop of 1.3%.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Vehicle Lifetime Solutions revenue growth: 18.1% YoY (Q1 CY26)
p. 6
“Vehicle Lifetime Solutions also posted robust double-digit numbers at 18.1% over last year but a marginal 0.6% drop when compared to the preceding quarter.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Bearings and Industrial Solutions revenue growth: 4.2% YoY, -14.3% QoQ (Q1 CY26)
p. 6
“However, compared to the last year's quarter, you would find we have still done 4.2% growth.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Exports revenue growth: 32.5% YoY, 6.6% QoQ (Q1 CY26)
p. 6
“Exports also posted very robust numbers, as you can see, 32.5% compared to last year and 6.6% over the preceding quarter.”
Harsha Kadam, page 6 of the filed PDF · View the filing
Working capital as percentage of sales: 17.9% (Q1 CY26)
p. 7
“As a percentage to sales, we have registered at about 17.9% and we will continue to keep our focus and efforts on our inventory levels”
Harsha Kadam, page 7 of the filed PDF · View the filing
Capex: close to INR 80 crores in quarter, INR 350 crores and 3.1% of sales (Q1 CY26)
p. 7
“close to INR 80 crores still continued to be the investment within the quarter. And as a percentage to sales, we are at about INR 350 crores and 3.1%.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Free cash flow: INR 137 crores (Q1 CY26)
p. 7
“We had a positive cash flow into the system of about INR 137 crores coming in, in the first quarter compared to the Q1 of last year where it was about INR 237 crores that came in.”
Harsha Kadam, page 7 of the filed PDF · View the filing
Localization level: 80% (Q1 CY26)
p. 8
“our localization levels have reached up to 80%”
Harsha Kadam, page 8 of the filed PDF · View the filing
KRSV revenue: INR 78.7 crores (Q1 CY26)
p. 7
“KRSV, on the other hand, delivered a revenue of INR 78.7 crores in the quarter still has to breakeven when it comes to the profitability side, and it has registered an EBITDA of minus 13.4%”
Harsha Kadam, page 7 of the filed PDF · View the filing
Consolidated revenue: INR 2,585.6 crores (Q1 CY26)
p. 7
“Overall, the consolidated result, INR 2,585.6 crores revenue, 19.1% on the EBITDA, registering a 15.6% EBIT margin at a consolidated level.”
Harsha Kadam, page 7 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 growth — 10% to 12% · CY2026
stated conditionally by Hardevi Vazirani
p. 9
“And very likely, if we go run rate of the full year, we will be close to 10% to 12%.”
Hardevi Vazirani, page 9 of the filed PDF · View the filing
Capex — INR 400 crores to INR 500 crores · CY2026
stated firmly by Hardevi Vazirani
p. 18
“So, it will be in the range of what we had earlier, INR 400 crores to INR 500 crores investment this year.”
Hardevi Vazirani, page 18 of the filed PDF · View the filing
Full-year delivery commitment — CY2026
stated firmly by Harsha Kadam
p. 8
“we do not see major concerns in terms of delivering the numbers that we are committed to deliver this year.”
Harsha Kadam, page 8 of the filed PDF · View the filing
Formal revenue and margin guidance — CY2027, CY2028
stated firmly by Harsha Kadam
p. 15
“No, Varun. We do not issue a guidance as such.”
Harsha Kadam, page 15 of the filed PDF · View the filing
Price increase recovery from cost pass-through — full realization · six quarters
stated firmly by Hardevi Vazirani
p. 14
“We have first batch of price increases realizing from Q2 onwards. However, for the full realization, it takes close to six quarters.”
Hardevi Vazirani, page 14 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 supply chain headwinds from the Middle East crisis persist but they remain focused on delivering committed numbers through daily crisis management meetings.
Answered by Harsha Kadam
Asked by Raghunandhan: What is the outlook for the industrial demand segment for CY2026, including wind, railways and off-road categories?
p. 8
“As we see, we do not see major concerns in terms of delivering the numbers that we are committed to deliver this year.”
Harsha Kadam, page 8 of the filed PDF · View the filing
Management attributed strong performance to presence across all technology platforms including ICE, hybrid, and e-mobility.
Answered by Harsha Kadam
Asked by Raghunandhan: What is driving outperformance in Automotive Technologies versus underlying automotive production growth?
p. 9
“Clearly, we see that the automotive sector demand trend should continue the way it is, and we believe that it will remain robust going forward as well.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Management said input costs for fuel-related items rose due to Middle East supply chain disruption and they are exploring alternate sourcing, stocking, and customer compensation.
Answered by Harsha Kadam
Asked by Raghunandhan: Are there cost pass-through mechanisms for rising commodity and fuel costs?
p. 9
“So, LPG, propane and some of the fuel items, which India relies heavily on imports has been impacted and the prices definitely have gone up there.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Management said multiple factors contributed, including continued localization efforts and a deliberate portfolio recalibration exercise done early in the year.
Answered by Harsha Kadam
Asked by Mukesh Saraf: Why has the industrial bearings business remained flattish, and is it competitive intensity, weak demand, or planned calibration?
p. 10
“our localization percentage has actually gone up to 80% now. So, we are on the right track there.”
Harsha Kadam, page 10 of the filed PDF · View the filing
Management confirmed competition is intensifying within India, prompting portfolio recalibration.
Answered by Harsha Kadam
Asked by Mukesh Saraf: Is the calibration due to pricing pressure from local or imported competition?
p. 10
“that is one of the reasons as well that we see our competition is also intensifying their activity within India.”
Harsha Kadam, page 10 of the filed PDF · View the filing
Management said there was demand slowdown in the aftermarket side due to a liquidity crunch affecting distributors, viewed as likely seasonal.
Answered by Harsha Kadam
Asked by Ankur Sharma: Has demand itself slowed in industrial bearings, and in which segments?
p. 11
“We have seen a bit of demand slowdown in the aftermarket side of the industrial business, surely. And there appears to be a liquidity crunch in the market as a result of which the cash flows to our distributor community has been impacted in this quarter.”
Harsha Kadam, page 11 of the filed PDF · View the filing
Management said no dip in demand is visible and the order book for the year shows at least 10% growth, aided by Southeast Asia business development.
Answered by Hardevi Vazirani
Asked by Ankur Sharma: How are export markets like APAC and Southeast Asia shaping up given crude price spikes?
p. 11
“The order book for the year is solid, . Currently, it's showing 10% growth, minimum 10% that we are likely to register.”
Hardevi Vazirani, page 11 of the filed PDF · View the filing
Management said current performance is purely from own ICE technology products and Vitesco benefits are yet to materialize.
Answered by Hardevi Vazirani
Asked by Abhishek Ghosh: Is the Automotive Technologies outperformance linked to Vitesco integration benefits?
p. 13
“No, the benefits of that are yet to come. It is purely our own ICE technology products in the space of clutch systems and engine systems.”
Hardevi Vazirani, page 13 of the filed PDF · View the filing
Management confirmed inventory buildup occurred and expects a better outlook in coming quarters.
Answered by Hardevi Vazirani
Asked by Abhishek Ghosh: Is there inventory buildup in the quarter due to supply chain issues?
p. 14
“There has been inventory buildup and the outlook for coming quarters is better.”
Hardevi Vazirani, page 14 of the filed PDF · View the filing
Management said industrial space localization is around 60% versus 80% overall, and full localization is unlikely given evolving technology needs.
Answered by Hardevi Vazirani
Asked by Varun Jain: What is the localization percentage specifically within the industrial bearings space and its upper bound?
p. 14
“Within industrial space, we might be around 60% or so. And there is still enough room for us in the industrial space, specifically bearings to localize.”
Hardevi Vazirani, page 14 of the filed PDF · View the filing
Management said Q1 aftermarket distribution is seasonally weaker due to inventory correction around fiscal year-end, and capacity utilization remains healthy due to exports.
Answered by Hardevi Vazirani
Asked by Viraj Kacharia: Why is the industrial business underperforming despite Schaeffler's localization lead over MNC peers?
p. 16
“Second thing is even though our performance of the market appears lower, but overall, our capacity utilization are not impacted because we are compensated through exports.”
Hardevi Vazirani, page 16 of the filed PDF · View the filing
Management said exports depend on intercompany order books and idle capacity utilization rather than a dedicated export growth strategy.
Answered by Hardevi Vazirani
Asked by Nirali Gopani: Is the strong export growth a one-off or expected to continue over the longer term?
p. 17
“We don't have a kind of export strategy to focus only on export growth. Whenever there are idle capacities, those are utilized by intercompany partners to increase our exports.”
Hardevi Vazirani, page 17 of the filed PDF · View the filing
Risks flagged
Supply chain disruption from the Middle East and West Asia geopolitical crisis affecting fuel and input costs
p. 9
“with the situation in the West Asia clearly has resulted in choking of the supply chains for the fuel.”
Harsha Kadam, page 9 of the filed PDF · View the filing
Liquidity crunch among distributors affecting aftermarket demand
p. 11
“there appears to be a liquidity crunch in the market as a result of which the cash flows to our distributor community has been impacted in this quarter.”
Harsha Kadam, page 11 of the filed PDF · View the filing
Intensifying local and import competition in the industrial bearings segment
p. 10
“our competition is also intensifying their activity within India”
Harsha Kadam, page 10 of the filed PDF · View the filing
Weak traction in the mining sector
p. 10
“when you look at the mining sector, we have not seen much traction on the mining sector”
Harsha Kadam, page 10 of the filed PDF · View the filing
Uncertainty over passing on higher input costs to customers
p. 9
“I guess time will tell us how successful we will get in terms of adjusting these cost increases or accommodating these cost increases or getting compensation for these cost increases.”
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.