01 — At a Glance
The Bearing That’s Bearing Fruit (Very Expensive Fruit)
- 52-Week High / Low₹4,468 / ₹2,823
- CY25 Revenue (Full Year)₹9,395 Cr
- CY25 PAT (Full Year)₹1,196 Cr
- Full-Year EPS (CY25)₹76.53
- Annualised EPS (Q4×4)₹83.92
- Book Value₹352
- Price to Book12.3x
- Dividend Yield0.65%
- Debt / Equity0.01x
- Return (6 months)+11%
Opening Note: Schaeffler India closed CY25 with ₹9,395 crore revenue (+16.3% YoY), ₹1,196 crore PAT, 29.8% ROCE, and a debt-to-equity of 0.01x — basically zero debt, because apparently leverage is for companies with anxiety disorders. The stock trades at 56.5x P/E (industry median: 26.7x). Translation: you are not paying for today’s earnings. You are gambling on tomorrow’s hype. A greenfield plant at Shoolagiri just came online with ₹3,300 crore invested. Hybrid vehicle supplies have begun. e-Axles are ramping faster than guidance. The question isn’t whether Schaeffler India is growing — it clearly is. The question is whether you’re buying growth at 2x the price your neighbour paid three years ago.
02 — Introduction
The German Company That Decided India Was Its Actual Headquarters
Let’s say you’re a 70-year-old German bearing manufacturer. You’ve been making roller and ball bearings since 1945. You’ve sold to Mercedes, Porsche, and basically every car that costs more than a house. One day, you realize: “Wait. What if we moved production to India?” Schaeffler Group did exactly that. And now, Schaeffler India is the crown jewel of the Schaeffler story, consistently delivering double-digit growth while the global bearing market looks like it was invented during the Great Depression.
CY25 was a breakout year. Revenue grew 16.3% to ₹9,395 crore. Profit swelled 22.4% to ₹1,196 crore. PAT margins expanded 60 basis points to 12.7%. The company is running 4 manufacturing plants at >85% capacity utilization. Capex was judiciously managed in CY25, but management confirmed a step-up to ₹500+ crore in 2026 to support the expansion. A shiny new plant in Tamil Nadu (Shoolagiri) is now in production with 1.6 million unit capacity over 3-5 years.
But here’s the kicker: the stock has already re-rated hard. P/E of 56.5x is not a bargain-hunting opportunity. P/B of 12.3x suggests every book rupee is worth ₹12.30 in market expectations. EV/EBITDA is sitting at 34.1x. If you bought in January 2023, congratulations — you’ve delivered 32.8% returns over 5 years, including dividends. If you’re buying now at peak optimism and peak valuation, you’re the one who should be congratulated for courage, not consistency.
February 2026 Concall Note: Management cited structural support from GST 2.0 reform, inflation at 0.8% in Q4 (lowest ever), and IIP improvement to 5% — all constructive for vehicle demand and capital formation. The macro backdrop is genuinely solid. The question is whether ₹4,326 per share has priced all of this in. Spoiler: it probably has.
03 — Business Model: WTF Do They Even Do?
They Make Shiny Spinning Metal Things (Very, Very Precisely).
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