Schaeffler India Ltd (SCHAEFFLER) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management is confident of recovering 80-85% of recent input cost inflation, with 50% already recovered and the rest under negotiation with a 4-6 month retrospective effect.
- A significant inventory buildup for an unbudgeted surge in e-mobility demand and logistical buffers caused a sharp drop in free cash flow, which management expects to correct in Q4.
- The parent company has expressed an intent to monetize a minor stake, potentially reducing its holding to ~67%, but no merger with Vitesco India is planned.
Performance Overview
- Schaeffler India reported a strong double-digit revenue growth of 27.4% year-on-year for the third quarter, driven by robust performance across all business segments.
- The company experienced margin pressure, with the EBITDA margin slightly contracting to 18.7% from 19.1% in the preceding quarter due to rising input costs and the West Asia crisis impacting fuel prices.
- Exports were a standout performer, growing 46.3% year-over-year and increasing their share of total revenue to 17% from 15% in the previous quarter.
- The company maintained a strong focus on securing new business across its Automotive Technologies, Vehicle Lifetime Solutions, and Bearings & Industrial Solutions divisions to fuel future growth.
- Working capital increased to 19% of sales, impacting free cash flow, which was significantly lower at 41 crores, a situation management is actively working to correct in Q4.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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