1. Opening Hook
While the RBI cooled inflation to 1.7%, Schaeffler India’s management was busy heating up their EBITDA margin past 20% — clearly, bearings can handle friction better than our politicians. The company bagged awards from Escorts Kubota and TAFE for “zero defect supplies,” proving that German engineering plus Indian jugaad can indeed create miracles. As the Gita reminds us,“Yogah Karmasu Kaushalam”— excellence in action. And Schaeffler’s Q3 showed exactly that. Stick around — things get greased up later.
2. At a Glance
- Revenue up 13.9% YoY:CFO swears it’s not a rounding error — real growth.
- EBITDA margin breached 20%:Finally, bearings turned into profit magnets.
- PAT at ₹307 crore:Smooth like a ball bearing, steady 24% YoY rise.
- Free Cash Flow ₹223 crore:Management calls it “strong footing”; auditors call it “finally visible.”
- Localization hit 79%:“Atmanirbhar Bharat” officially adopted a German accent.
- Export down 4.5% QoQ:Blame America — tariffs take the wheel again.
3. Management’s Key Commentary
“We breached the 20% EBITDA barrier this quarter.”(Translation: Someone finally oiled the cost control machine. 😏)
“Localization now stands at 79%, targeting 80% soon.”(Translation: Imported parts? That’s so 2022.)
“Automotive technologies grew 18.7% YoY.”(Translation: ICE still runs hot while EV whispers in the background.)
“KRSV (Koovers) EBITDA at -14.7%, break-even by 2027.”(Translation: The e-commerce arm is running like a flat tire, but hey — it’s a start-up!)
“Capex will pick up from 2027 onwards.”(Translation: Until then, we’ll sweat the machines like overworked engineers in Hosur.)
“Industrial Solutions saw timing issues in project businesses.”(Translation: Clients are ghosting, not gone — just ‘delayed.’)
“Export growth driven by low base, not booming demand.”(Translation: The ‘growth’ story has a nostalgia filter.)
4. Numbers Decoded
| Metric | Q3 CY25 | QoQ Growth | YoY Growth | Commentary |
|---|---|---|---|---|
| Revenue | ₹2,360 Cr | +3.4% | +13.9% | Bearings spun faster than GDP. |
| EBITDA | ₹476 Cr | +6.1% | +24% | Margin crossed 20% milestone. |
| PAT | ₹307 Cr | +3.5% | +24% | Still a smooth ride. |
| Free Cash Flow | ₹223 Cr | — | +Strong | Finally, not stuck in working capital. |
| Localization | 79% | +1% | +3% | Almost “Made in India,” not just “Packaged here.” |
| Capex | ₹267 Cr (9M) | — | — | Focus: sweat existing assets, not buy new toys. |
Margins powered by domestic demand and fixed-cost absorption; export dip offset by OEM orders.
5. Analyst Questions
Q:Are OEMs asking for more capacity after GST cuts?A:Yes, they’re bullish — demand coming like a Diwali sale rush.
Q:B&IS growth slowing — structural or timing?A:Just project delays, not doom. Think “Netflix buffering,” not “connection lost.”
Q:EV revenues?A:Classified. NDA stricter than RBI on crypto.
Q:KRSV losses?A:Normal start-up burn; expect profits when your toddler graduates.
Q:Capex next year?A:Low now, hotter in 2027 —
