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Supply chain disruption from Middle East crisis
View Risks →Schaeffler India Ltd — Q4 FY26
Schaeffler India delivered a robust Q1 FY26 with revenue of ₹2,570 crore (+18.8% YoY) and EBITDA of ₹483 crore (19.3% margin).
bullish
medium
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Schaeffler India delivered a robust Q1 FY26 with revenue of ₹2,570 crore (+18.8% YoY) and EBITDA of ₹483 crore (19.3% margin). Automotive technology led growth at 30.8% YoY, driven by strong ICE and hybrid demand, while exports surged 32.5% YoY on intercompany orders. Industrial bearings saw a planned recalibration due to pricing pressure and liquidity crunch in the aftermarket, leading to a 14.3% QoQ decline. Management guided for full-year export growth of 10-12% and capex of ₹400-500 crore. Key risk: supply chain disruptions from Middle East tensions and inability to fully pass on input cost inflation (6-18 month lag).
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Automotive Technology Revenue Growth
30.8%
+30.8% YoY
Strong outperformance vs industry production growth of ~15%, driven by ICE, hybrid, and e-mobility portfolios.
Exports Revenue Growth
32.5%
+32.5% YoY
Robust intercompany orders from Europe, Americas, and Southeast Asia; full-year outlook upgraded to 10-12%.
Localization Level
80%
+80%
Overall localization reached 80%; industrial bearings at ~60%, with further room to improve.
Industrial Bearings Revenue QoQ Change
-14.3%
-14.3% QoQ
Planned recalibration due to pricing pressure and liquidity crunch in aftermarket; capacity utilization remains above 80%.
What Changed vs Last Quarter
NEW
Full-year export growth of 10-12%
Exports expected to grow 10-12% for CY26, driven by strong intercompany order book from multiple regions.
NEW
Price recovery over 6-18 months
Input cost increases from Middle East crisis will be passed on over 6-18 months, with first batch from Q2 onwards.
UPDATED
Capex of ₹400-500 crore for CY26
Capital expenditure planned in the range of ₹400-500 crore, picking up from last year's rationalized level.
DROPPED
Export growth to moderate to 5-10% in CY26
Export order book for 2026 is in line with 2025, but growth is expected to moderate to 5-10% due to economic conditions in Europe and Asia Pacific.
DROPPED
Sustained double-digit revenue growth in CY26
Management reiterated commitment to double-digit growth in the medium term, supported by strong pipeline and market demand.
NEW RISK
Supply chain disruption from Middle East crisis
Geopolitical tensions have choked fuel supply chains, increasing input costs; management has set up crisis teams but impact may persist.
NEW RISK
Pricing pressure in industrial bearings
Intensifying competition from local and MNC players is forcing recalibration of product portfolios, potentially impacting market share.
NEW RISK
Liquidity crunch in aftermarket
Distributor cash flow issues led to lower demand in industrial aftermarket; though seasonal, it could recur if economic conditions worsen.
NEW RISK
Delayed pass-through of cost inflation
Full recovery of input cost increases may take up to 18 months, pressuring margins in the interim if commodity prices remain elevated.
RISK GONE
Export growth moderation
Management guided export growth to slow to 5-10% in CY26 from 30-35% in CY25, due to weaker European and Asia Pacific demand.
RISK GONE
Competitive intensity in industrial bearings
Analyst raised concern about a competitor's new SRB plant; management acknowledged competition but emphasized localization strategy.
RISK GONE
KRSV subsidiary losses
KRSV's losses widened to 18.3% margin in Q4; management expects improvement in CY26 through channel and product mix optimization.
Fast read
Guidance and risk preview
Exports expected to grow 10-12% for CY26, driven by strong intercompany order book from multiple regions.
Geopolitical tensions have choked fuel supply chains, increasing input costs; management has set up crisis teams but impact may persist.
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