Schaeffler India Q2 FY26 Results (NSE: SCHAEFFLER)
Signal: Growth reaccelerated
The read
Q2FY26 consolidated results show robust topline growth (17.3% YoY) driven by Automotive Technologies, but EBITDA margin contracted ~71bps YoY to 19.4% due to higher raw material costs. Net profit grew 13.5% YoY. The subsidiary KRSV continues to drag consolidated profitability with repeated losses. Standalone performance was marginally stronger (PAT +13.7% YoY, EPS ₹21.5). Margin trajectory warrants monitoring amid input cost pressures.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,760.55 Cr | 17.3% | 6.8% |
| EBIT | ₹444.59 Cr | 13.3% | |
| Net profit | ₹325.78 Cr | 13.5% | |
| EPS | ₹20.8 | 13.0% | |
| EBIT margin | 19.4% |
P&L walk
Revenue growth accelerated to 17.3% YoY driven by Automotive Technologies (+33% YoY). EBITDA margin contracted ~71bps YoY to 19.4% on higher raw material costs (cost of materials + purchases as % of revenue rose from 60.7% to 62.4%). Net profit grew 13.5% YoY, in line with operating profit. Subsidiary KRSV contributed a loss of ₹174.2 mn, dragging consolidated PAT below standalone.
Segments
In standalone, Mobility components segment posted 19.3% YoY revenue growth and 6.0% YoY profit growth; Others segment grew 11.4% revenue and 55.7% profit. On consolidated basis, subsidiary KRSV incurred a loss of ₹174.2 mn (net equity -₹1,275.9 mn), reducing consolidated PAT below standalone by ₹109.5 mn.
Key positives
- Revenue growth accelerated to 17.3% YoY (vs 15.1% in Q1FY26) backed by Automotive Technologies (+33% YoY).
- Employee cost as % of revenue improved from 6.4% to 5.8% YoY, reflecting operating efficiency.
- Near-zero net debt with net cash of ₹14,585 mn; strong operating cash flow of ₹4,113 mn in H1.
- Both standalone segments reported revenue and profit growth; Others segment profit up 55.7% YoY.
Key concerns
- EBITDA margin contracted ~71bps YoY to 19.4% as raw material cost ratio rose from 60.7% to 62.4%.
- Subsidiary KRSV continues to report losses (₹174.2 mn in Q2) with negative net worth of ₹1,275.9 mn, dragging consolidated results.
- Inventories surged 27% sequentially to ₹22,497.5 mn, increasing working capital pressure.
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