1. At a Glance
Schaeffler India clocked ₹2,282 Cr revenue (+10% YoY) and ₹296 Cr PAT (+16.8%) in Q1 FY26. ROCE? A sizzling 25.7%. But with a P/E of 59.7 and CMP of ₹4,033, this stock is more premium than the fuel you avoid at petrol pumps.
2. Introduction with Hook
Think of Schaeffler India like a BMW engine in a Maruti shell — precise, efficient, and almost too polished for its peers. But like every luxury component maker, it’s also priced like it’s the protagonist in a Christopher Nolan film — complex, admired, and mostly unaffordable.
Two facts to chew on:
- Trading at 11.4x Book Value
- Q1 EPS of ₹18.95, yet priced like it’s about to invent perpetual motion
3. Business Model – WTF Do They Even Do?
Schaeffler makes stuff that moves… the stuff that moves.
Their catalogue includes:
- Bearings (for wheels, engines, etc.)
- Transmission systems (because gears need love too)
- Chassis & clutch systems
- Electric mobility components (now with extra ESG)
- Industrial automation tools (aka “Please use AI but only with precision”)
Basically: If it rotates, vibrates, or transmits torque, they probably sell it.
4. Financials Overview – ₹ Cr
| Metric | Q1 FY25 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue | 2,072 | 2,282 | +10.1% |
| EBITDA | 380 | 431 | +13.4% |
| Net Profit | 254 | 296 | +16.8% |
| OPM | 18% | 19% | Constantly German |
It’s a clinic in efficiency. Every quarter looks like it was audited by a team of Swiss bankers.
5. Valuation – What’s This Worth, Really?
Let’s pull some fancy tools from the valuation toolbox:
- P/E Method: ₹1,058 Cr TTM PAT × 35x = ₹37,030 Cr → FV = ₹2,390
- EV/EBITDA Method: ₹1,585 Cr EBITDA × 25x = ₹39,625 Cr EV → Net cash ≈ ₹350 Cr → FV = ₹2,540
Fair Value Range: ₹2,390–₹2,540
CMP = ₹4,033
Verdict? If you’re buying at this price, you better love your bearings more than your portfolio.
6. What’s Cooking – News, Triggers, Drama
- ₹1,700 Cr Tamil Nadu Plant Launch (May 2025): Powertrain + hybrid components for future-ready manufacturing
- Planetary Gear Systems for EVs: Because the world spins in orbits now
- EV Maintenance Training: Skilling the youth to fix the things Schaeffler sells
- Koovers & KRSV Acquisitions: Building auto aftermarket power
- 25+ concalls in 3 years: They talk a lot — but to be fair, when margins are 19%, you’ve earned it
More moves than a Formula 1 pit stop.
7. Balance Sheet – Clean as a Whiteboard
| Item | Jun 2025 |
|---|---|
| Equity Capital | ₹31 Cr |
| Reserves | ₹5,475 Cr |
| Borrowings | ₹39 Cr |
| Total Liabilities | ₹7,337 Cr |
| Fixed Assets + CWIP | ₹2,317 Cr |
| Net Cash | ₹350+ Cr (estimated) |
Debt? Practically zero. Net worth? Built like a vault. Balance sheet stronger than your gym bro’s flex.
8. Cash Flow – Real Cash, Not Paper Gains
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY22 | ₹751 Cr | –₹535 Cr | –₹257 Cr | –₹41 Cr |
| FY23 | ₹900 Cr | –₹611 Cr | –₹386 Cr | –₹97 Cr |
| FY24 | ₹884 Cr | –₹71 Cr | –₹419 Cr | ₹394 Cr |
Despite heavy CapEx, cash keeps flowing like Schaeffler’s reputation — steady and hard to rattle.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 25.7% |
| ROE | 19.2% |
| PAT Margin | 12.4% |
| D/E | 0.01 |
| CMP/BV | 11.45x |
All numbers scream: “German precision meets Indian pricing delusion.”
Fundamentals: flawless
Valuation: feral
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY22 | ₹6,867 Cr | ₹1,296 Cr | ₹879 Cr |
| FY23 | ₹7,226 Cr | ₹1,327 Cr | ₹909 Cr |
| FY24 | ₹8,076 Cr | ₹1,468 Cr | ₹978 Cr |
| TTM | ₹8,547 Cr | ₹1,585 Cr | ₹1,058 Cr |
Profits are compounding like a German pension — slow, consistent, and incredibly satisfying.
11. Peer Comparison – Bearings vs Buzzwords
| Company | Revenue (TTM ₹ Cr) | PAT | ROE | P/E |
|---|---|---|---|---|
| Bosch | ₹18,087 | ₹2,012 Cr | 15.6% | 55x |
| Schaeffler India | ₹8,547 | ₹1,058 Cr | 19.2% | 60x |
| Uno Minda | ₹16,774 | ₹934 Cr | 17.5% | 67x |
| Endurance | ₹11,561 | ₹782 Cr | 14.6% | 46x |
Schaeffler sits in the Goldilocks zone — not the biggest, not the flashiest, but definitely among the most efficient.
12. Miscellaneous – Shareholding, Dividends, Legacy
| Category | Jun 2025 |
|---|---|
| Promoters | 74.13% |
| FIIs | 4.57% |
| DIIs | 15.97% |
| Public | 5.31% |
Dividend Payout = 45%
EPS = ₹67.7
Still compounding like it’s trying to win “Best Supporting Actor” in your long-term portfolio.
Also, no management drama, no lawsuits, no debt bomb — just boring, wonderful compounding.
13. EduInvesting Verdict™
Schaeffler is a rare auto ancillaries company that runs like a metronome. It’s clean, global, and scalable — but also trades like it’s already solved climate change and India’s logistics problem.
A beautiful machine. But don’t confuse bearings with barfi — this one’s priced like gold-plated engineering.
Written by EduInvesting Team | 25 July 2025
Tags: Schaeffler India, Bearings, Auto Components, Q1 FY26 Results, EduInvesting Premium
