Schaeffler India Q1 FY27 Results (NSE: SCHAEFFLER)
Signal: Steady quarter
The read
Revenue growth remained strong at 17.3% YoY, but EBITDA margin was flat at 18.1% (down 21bps) as input cost pressures offset employee cost savings. PAT grew 13.5% YoY, dragged by subsidiary losses (KRSV) which eroded about ₹11 crore from group profit. Standalone PAT ₹33.7 crore higher than consolidated ₹32.6 crore. The 'Others' segment (industrial bearings) showed outstanding profit growth, while Mobility components lagged.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,760.55 Cr | 17.3% | 6.8% |
| EBIT | ₹498.98 Cr | 16.0% | |
| Net profit | ₹325.78 Cr | 13.5% | |
| EPS | ₹20.8 | 13.0% | |
| EBIT margin | 18.1% |
P&L walk
Revenue grew 17.3% YoY, gross margin compressed 40bps to 38.9%; EBITDA margin flat at 18.1% as employee cost ratio improved 60bps. PAT growth of 13.5% YoY constrained by subsidiary loss of ₹174 million in the quarter.
Segments
Others segment (Bearings & Industrial Solutions) profit surging 55.7% YoY, driving overall profitability; Mobility components profit grew modest 6.0%. Subsidiary KRSV (consolidated) remains a drag with ₹174.2 million loss in the quarter.
Key positives
- Revenue grew 17.3% YoY, maintaining double-digit trajectory
- EBITDA margin steady at 18.1% despite input cost headwinds
- Employee cost ratio improved 60bps YoY to 5.8%
- Others segment profit jumped 55.7% YoY, indicating strong demand in Bearings & Industrial Solutions
- Net cash position remains robust at ₹14,585 million
Key concerns
- Consolidated PAT growth (13.5%) lagged revenue growth (17.3%) due to subsidiary losses and higher depreciation
- Subsidiary KRSV continued to incur losses (₹174.2 million in Q1, ₹322.4 million in H1) and has negative net worth of ₹1,275.9 million
- Gross margin compressed 40bps YoY to 38.9%
- Other income declined 14.7% YoY
Research and educational content only. Not investment advice.