Opening Hook
When the economy wobbles, most auto component companies squeak. Schaeffler India, however, rolled into Q2CY25 with German precision—delivering double-digit growth, more awards than a Bollywood award night, and a CAPEX plan that could make even Elon Musk take notes.
Investors were treated to tales of e-axles, localization wins, and a love story with Toyota and Tata Motors. Here’s what we decoded from this 17-page corporate saga.
At a Glance
- Revenue: ₹2,282 Cr – up 10.1% YoY, because bearings don’t believe in slowdowns.
- EBITDA: ₹449 Cr – margin at 19.7%, flexing those efficiency muscles.
- PAT: ₹296 Cr – profit rolled in smooth, up 17% YoY.
- Exports: Grew like weeds in the monsoon, up 23% for H1CY25.
- CAPEX: A cautious pause this year, but €500 Mn incoming by 2030 – brace yourselves.
The Story So Far
Schaeffler India started as a bearing manufacturer and evolved into a mobility-tech powerhouse. Over the last five quarters, it’s been on a growth streak, riding the EV-hybrid wave, winning awards, and sprinkling CSR fairy dust with projects like Jal Samruddhi. Q2CY25 continues the streak—revenues zoomed, margins held strong, and localization climbed to 78%. The company even inaugurated its fifth manufacturing plant at Shoolagiri and kicked off e-axle production for Tata Harrier.
Management’s Key Commentary
- On Growth:
“Momentum continues with double-digit growth.”
– Translation: We’re on a roll, literally. - On Exports:
“Asia-Pacific driving growth, order book secured for 2025.”
– Translation: Our bearings are traveling more than we are. - On CAPEX:
“€500M over 5 years starting 2026.”
– Translation: Wait for the fireworks; this year is just the warm-up. - On E-Mobility:
“e-Axles successfully launched for Tata Harrier.”
– Translation: EV future? We’ve already plugged in. - On Localization:
“Rate up to 78%.”
– Translation: Make in India, make in margin.
Numbers Decoded – What the Financials Whisper
| Metric | The Hero | The Sidekick | The Drama Queen |
|---|---|---|---|
| Revenue | ₹2,282 Cr (+10% YoY) | +8% QoQ | “Broad-based growth.” |
| EBITDA | ₹449 Cr (+16.6% YoY) | Margin 19.7% | “German efficiency in action.” |
| PAT | ₹296 Cr (+17% YoY) | Margin 13% | “Rolling profits.” |
One-liner: Strong quarter, cash flow rolling smoother than the bearings themselves.
Analyst Questions That Spilled the Tea
- On Debt & CAPEX:
Management: “Spending aligns with market volatility.”
– Translation: Chill, we’re not burning cash… yet. - On e-Axle Exports:
Management: “Currently focused on India.”
– Translation: Domestic EVs first, world domination later. - On Koovers Subsidiary:
Management: “Margins negative, working on it.”
– Translation: Pray for Koovers.
Guidance & Outlook – Crystal Ball Section
Expect continued double-digit growth, powered by new orders, hybrid powertrains, and a robust export pipeline. Margins will stay healthy (19-20%) while free cash flow keeps shining. CAPEX will ramp up only from FY26, meaning near-term spends remain conservative.
Risks & Red Flags
- Koovers Losses – still a drag.
- Market Volatility – auto production slowing domestically.
- High NDAs – investors love numbers, not secrecy.
- Global Factors – Europe demand and geopolitics could throw a wrench.
Market Reaction & Investor Sentiment
Traders cheered the export growth and margins, while analysts drooled over the CAPEX pipeline. The stock is likely to stay in the “strong buy” zone as long as Schaeffler keeps rolling out these quarters.
EduInvesting Take – Our No-BS Analysis
Schaeffler India is like that German-engineered car—solid, efficient, and expensive to ignore. Q2CY25 was a perfect mix of growth, margin control, and strategic investments. However, risks from Koovers, domestic auto weakness, and global headwinds can’t be brushed aside. Investors should ride along but keep an eye on the road.
Conclusion – The Final Roast
Q2CY25 showed Schaeffler India can handle market potholes while cruising at high speed. Bearings, e-axles, and localization are driving the story. If they deliver on CAPEX and Koovers stops bleeding, the company’s growth ride could turn turbocharged.
Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.
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