SCHAEFFLER - Schaeffler India

📊 NSE: SCHAEFFLER 🏢 Bearings 📅 Last Updated: 12/14/2025 12:57

💰 Financial Performance

Revenue Growth by Segment

Bearings & Industrial Solutions grew 14.1% in 2024 (contributing 44% of revenue), while Automotive Technologies grew 11.6% (34% of revenue). Vehicle Lifetime Solutions contributed 13% and Intercompany Exports/Others 9%. Standalone revenue for Q3 2025 grew 13.9% YoY to INR 2,360.1 Cr.

Geographic Revenue Split

Exports hover at approximately 15% of total revenue, while domestic business remains the primary focus. Intercompany exports and others contributed 9% to the 2024 revenue mix.

Profitability Margins

PAT margin was 12.1% in 2024 (INR 977.7 Cr) compared to 12.6% in 2023. Standalone PAT margin for Q3 2025 improved to 13.0% (INR 306.7 Cr), a 24% YoY increase from INR 247.1 Cr.

EBITDA Margin

EBITDA margin was 18.5% in 2024 (INR 1,496.9 Cr). Standalone EBITDA margin for Q3 2025 reached 20.2% (INR 476 Cr), up from 18.5% in Q3 2024, driven by volume gains and fixed cost absorption.

Capital Expenditure

2024 Capex was INR 740.5 Cr, up 42.7% from INR 518.9 Cr in 2023. 9M 2025 Capex was INR 267 Cr, focusing on leveraging and sweating existing assets.

Credit Rating & Borrowing

Finance costs decreased 15.8% YoY to INR 3.5 Cr in 2024, indicating low leverage. Specific credit ratings and interest rate percentages were not disclosed in available documents.

⚙️ Operational Drivers

Raw Materials

Steel and traded goods are primary inputs for bearings and engine/transmission products. Traded goods sales are reducing as localization increases.

Capacity Expansion

Manufacturing facility is located in Savli, Gujarat. Current focus is on leveraging existing machines and capacities to generate value rather than aggressive new expansion.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, localization reached 79% in Q3 2025 (up from 76% in the preceding quarter), reducing dependency on imported traded goods.

Manufacturing Efficiency

Localization rate improved to 79% in Q3 2025. Operating margins improved due to better fixed cost absorption from higher volumes.

Logistics & Distribution

Distribution business is supported by over 150 partners pan-India. Specific costs were not disclosed.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be achieved by leveraging existing assets (sweating machines), increasing localization to 79%+, expanding the distribution network (150+ partners), and securing new business nominations in the EV segment and PV hydraulic tensioners.

Products & Services

Ball and roller bearings, plain bearings, engine and transmission products, clutch applications, dampers, hydraulic tensioners, large-size SRBs, and cast steel housings.

Brand Portfolio

Schaeffler, Koovers (KRSV Innovative Auto Solutions).

New Products/Services

Launched large-size SRBs and Cast Steel Housings for steel, cement, and mining. Secured new business in the EV segment for two-wheelers and hydraulic tensioners in the PV segment.

Market Expansion

Focus on growing domestic market share through 150+ distribution partners and expanding e-commerce channels via the Koovers platform.

Strategic Alliances

Acquisition of KRSV Innovative Auto Solutions (Koovers), an aftermarket e-commerce platform, which achieved sales of INR 158.1 Cr in 2024.

🌍 External Factors

Industry Trends

The industry is shifting toward EV technology and modernized railways (10,000 new LHB coaches planned). Schaeffler is positioning itself as a 'Motion Technology Company' to capture these shifts.

Competitive Landscape

Intense competition in automotive and industrial markets; company focuses on innovative product development to maintain a robust order intake.

Competitive Moat

Moat is built on precision engineering, 'X-life' quality standards, and a high localization rate (79%) which provides cost leadership and supply chain resilience.

Macro Economic Sensitivity

Sensitive to global economic conditions and headwinds which exerted pressure on 2024 margins. Domestic demand is sensitive to GST reforms.

Consumer Behavior

Shift toward passenger convenience in railways and sustainable performance in the automotive sector (EVs).

Geopolitical Risks

Global headwinds and trade barriers are mentioned as factors that could cause actual results to differ from projections.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to local statutory requirements and SEBI Regulation 30 for disclosures. GST reforms are impacting demand anticipation and working capital management.