Schaeffler India Q2 FY27 Results (NSE: SCHAEFFLER)
Signal: Steady quarter
The read
Q2FY27 revenue of ₹2,681 Cr (17.5% YoY) and PAT of ₹337 Cr (13.1% YoY) reflect sustained double-digit growth across all segments, though PBT margin contracted 50bps YoY due to input cost pressures from geopolitical developments. The sequential 7.0% revenue growth is a positive sign amid a volatile macro landscape, but the quality of earnings was 'marginally impacted' per management. Overall, consistent financial performance with a watch on margin trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,681.4 Cr | 17.5% | 7.0% |
| EBIT | ₹452.5 Cr | 13.7% | |
| Net profit | ₹336.7 Cr | 13.1% | |
| EPS | ₹16.1 | 12.6% |
P&L walk
Revenue grew 17.5% YoY with QoQ acceleration (+7.0%), driven by double-digit growth in Automotive Technologies, Vehicle Lifetime Solutions, and Intercompany Exports. PBT margin contracted 50bps YoY to 16.9% due to cost pressures from geopolitical developments, but earnings quality remained broadly stable.
Key positives
- Revenue of ₹26,814 million (+17.5% YoY, +7.0% QoQ) – double-digit growth continued in Automotive Technologies, Vehicle Lifetime Solutions, and Intercompany Exports.
- Net profit margin 12.6% broadly stable despite cost pressures; PAT grew in line with revenue.
- Sequential QoQ growth of 7% in a challenging quarter demonstrates business momentum.
Key concerns
- PBT margin contracted 50bps YoY to 16.9% due to cost pressures from geopolitical developments – quality of earnings marginally impacted.
- Net profit margin for H1 stood at 12.7% vs 12.8% in prior period – slight compression.
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