Schaeffler India's Q4 CY25: Riding the Motion Wave with Double-Digit Growth

Schaeffler India Limited, a key player in motion technology, concluded its financial year 2025 with a robust performance, demonstrating sustained double-digit growth across its operations. The company's Q4 CY25 standalone revenue stood at INR 2,643.1 crore, marking an impressive 26.9% year-on-year increase and a 12.0% sequential growth from Q3 CY25. For the full year, the standalone revenue reached INR 9,395.3 crore, reflecting a 16.3% growth over the previous year. This strong top-line expansion was complemented by improved profitability, with EBITDA reaching INR 505.6 crore in Q4 CY25, translating to a healthy 19.1% margin. Profit After Tax (PAT) for the quarter was INR 328 crore, with a margin of 12.4%, underscoring the company's operational efficiency and disciplined capital allocation.

The growth momentum was broad-based, with all divisions contributing significantly. The Automotive Technologies segment saw a remarkable 41.6% year-on-year growth in Q4 CY25, driven by new business wins in hydraulic cam phasers, PV clutches, and LV clutches, alongside the ramp-up of e-Axle projects. Vehicle Lifetime Solutions also posted a strong 16.6% YoY growth, fueled by new product launches and deal wins for auxiliary drive mechanisms. The Bearings & Industrial Solutions segment grew 13.1% YoY, benefiting from new business in two-wheelers and industrial applications across sectors like cement and steel. Exports also saw a strong rebound, growing 49.2% YoY in Q4 CY25, contributing to the overall positive performance.

Strategic Focus and Future Readiness

Schaeffler India's success is not merely a reflection of market buoyancy but also a testament to its strategic initiatives. The company's relentless focus on localization has been a significant enabler, with localization content reaching 78% in the last quarter. This strategy aims to reduce import dependency and enhance competitiveness, particularly for spherical roller bearings. Furthermore, the integration of Vitesco's portfolio has proven complementary, leading to new business wins in Battery Management Systems (BMS) for Battery Electric Vehicles, and the e-Axle project exceeding its 2025 projections. The company is now investing in the next phase of localization for e-Axle production, signaling a clear commitment to the evolving e-mobility landscape.

In the aftermarket segment, the company's subsidiary, KRSV Innovative Auto Solutions (Koovers), continues to be a strategic investment. While it is currently in a growth phase and reporting losses, management has established an infrastructure base of dark stores and hubs. The focus for 2026 will shift towards optimizing the channel and product mix and improving operational efficiency, with a clear plan to achieve breakeven. This disciplined approach extends to capital allocation, with capex deliberately moderated in 2025 to prioritize utilization and capital efficiency, achieving over 85% capacity utilization. Capex is set to scale up again in 2026, exceeding INR 500 crore, aligning with future product demands and long-term growth objectives.

Sustainability and Outlook

Beyond financial metrics, Schaeffler India has made significant strides in sustainability. The company was ranked 1st in India and 7th globally in the S&P CSA Dow Jones Sustainability Index, a testament to its strong ESG performance. This achievement, marked by a 40-point increase in its overall CSA score, highlights the company's commitment to environmental, social, and governance excellence. The company's water conservation project, Jal Samruddhi, and women skill development initiatives further underscore its dedication to social responsibility.

Looking ahead, Schaeffler India is committed to sustaining its double-digit growth trajectory in the midterm. While export growth is expected to moderate to 5-10% in 2026 due to global economic conditions, the robust domestic demand, infrastructure push, and government support for electric mobility are expected to provide strong tailwinds. The company's disciplined capital allocation, focus on localization, and strategic investments in future technologies position it well to continue its journey as a leading motion technology company, delivering long-term stakeholder value.