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).
Schaeffler India operates in four revenue streams: Automotive Technologies (35% of Q4 revenue), Bearings & Industrial Solutions (BIS, 39%), Automotive Aftermarket (11%), and Exports (15%). The company manufactures high-precision roller bearings, ball bearings, clutch systems, hydraulic cam phasers, and increasingly, electrification components like e-axles and battery management systems.
The core thesis is simple: global carmakers need precision components. India is becoming the manufacturing hub for those carmakers (Volkswagen, Audi, BMW, Komatsu, etc.). Schaeffler India supplies them from four plants: Pusan (Pune), Maneja (Vadodara), Jamshedpur, and now Shoolagiri (Tamil Nadu). Distribution reaches 33,000+ retail touchpoints through 330 channel partners. Localization stands at 78%, meaning 78% of COGS is sourced or manufactured locally.
The revenue mix is deliberately balanced: automotive OEM demand drives 35–39% of revenue (exposed to vehicle cycle), industrial bearings add stability via railways, automation, and heavy equipment exposure, aftermarket services (Koovers subsidiary, acquired 2023) provide recurring spare parts revenue, and exports hedge India-specific demand risk.
Auto Tech35%Q4 Revenue Mix
Bearings & Ind.39%Q4 Revenue Mix
Aftermarket11%Q4 Revenue Mix
Exports15%Q4 Revenue Mix
The Vitesco Mega-Story: In 2022, Schaeffler acquired Vitesco Technologies (a €5bn+ global electrification powerhouse). The merger is now complete. Management calls it: “in front of the customer, there is only one brand — Schaeffler.” Translation: Vitesco’s electronics, software, and battery management IP is now combined with Schaeffler’s mechanical engineering. Result: BMS (Battery Management System) wins are happening, e-axle ramping is ahead of schedule, and the integrated moat just got deeper.
💬 Schaeffler is betting big on hybrid vehicles and e-axles. Do you think India will be a hybrid stronghold, or jump straight to BEV? This changes the entire TAM.
04 — Financials Overview
Q4 CY25: The Raw Numbers
Result type: Quarterly Results | Q4 CY25 EPS: ₹20.98 | Annualised EPS (Q4×4): ₹83.92 | Full-year CY25 EPS: ₹76.53
| Metric (₹ Cr) |
Q4 CY25
Dec 2025 |
Q4 CY24
Dec 2024 |
Q3 CY25
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 2,643 | 2,082 | 2,360 | +26.9% | +12.0% |
| Operating Profit | 489 | 378 | 467 | +29.4% | +4.7% |
| OPM % | 18% | 18% | 20% | -200 bps | -200 bps |
| PAT | 328 | 249 | 307 | +31.5% | +6.8% |
| EPS (₹) | 20.98 | 15.95 | 19.62 | +31.5% | +6.9% |
P/E Recalculated: Full-year CY25 EPS ₹76.53 ÷ CMP ₹4,326 = P/E 56.3x. Q4 EPS annualized (₹20.98 × 4) = ₹83.92 → P/E 51.5x. Industry median for auto components is 26.7x. Schaeffler trades at 2.1x the sector median. Revenue grew 26.9% YoY, PAT grew 31.5%, margins compressed 200 bps (mainly due to labour-code regulatory cost absorption). The growth is explosive. The valuation is… optimistic? Management explicitly noted ₹0.8% regulatory cost absorption in Q4 related to labour-code changes. Strip that out, and OPM would have been ~19%.
05 — Valuation: Fair Value Range
Is ₹4,326 The Peak Or Just The Base Camp?
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