Schaeffler India (505790) Q2 25/26 earnings summary

Executive summary

• Q2 CY2026 revenue reached INR 26,814.1 million, up 17.5% YoY, with strong growth in Automotive Technologies, Vehicle Lifetime Solutions, and Exports despite input cost pressures and geopolitical challenges.

• EBITDA for the quarter was INR 5,132 million (19.1% margin), with profit after tax at INR 3,367.3 million (12.6% margin).

• Working capital increased to INR 16,608 million due to planned inventory buildup; management expects recovery in the second half.

• CapEx framework remains on track, supporting capacity expansion and localization initiatives.

• Appointment of Mr. Amit Dinesh Bhalerao as COO and Senior Management Personnel effective August 10, 2026.

Financial highlights

• Standalone revenue from operations for Q2 2026 was INR 26,814.1 million, up from INR 22,821.0 million in Q2 2025; consolidated revenue was INR 27,605.5 million, up from INR 23,525.9 million YoY.

• EBITDA for Q2 2026 was INR 5,132 million (19.1% margin); PAT at INR 3,367.3 million (12.6% margin).

• Free cash flow declined 66.3% YoY to INR 965 million, mainly due to increased working capital and reduced earnings.

• Standalone EPS for Q2 2026 was INR 21.5, compared to INR 19.0 in Q2 2025; consolidated EPS was INR 20.8, up from INR 18.4 YoY.

• Net cash generated from operating activities for H1 2026 was INR 4,112.5 million (standalone) and INR 3,893.5 million (consolidated).

Outlook and guidance

• Management expects to recover working capital and free cash flow position in the second half of the year.

• Export growth momentum expected to be maintained at 15%-20%, but guidance remains cautious due to geopolitical risks.

• CapEx for FY2026 projected at INR 400-500 crore, with focus on capacity expansion and localization.

• The Board and management did not provide explicit forward-looking guidance in the reviewed period.