Schaeffler India Limited has appointed Amit Bhalerao as its Chief Operating Officer, effective August 10, 2026. The appointment strengthens the company’s Executive Leadership Team as it seeks to drive operational excellence and accelerate localisation initiatives across its manufacturing footprint in India.

Bhalerao will lead manufacturing operations nationwide, focusing on digital transformation, capability development, and enhancing the company’s customer-centric approach. In this role, he will work closely with business and functional leaders to shape future-ready manufacturing capabilities across Schaeffler India’s five plants located in Talegaon, Savli, Maneja, Hosur, and Shoolagiri.

Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India Limited, stated that strengthening manufacturing and operations capabilities is central to the company’s journey as a leading motion technology provider. Kadam noted that Bhalerao’s extensive experience in leading complex manufacturing operations and building high-performing teams will enhance the company’s competitiveness and innovation capabilities.

Leadership Profile

Amit Bhalerao brings over 23 years of global leadership experience spanning manufacturing, operations, business excellence, lean transformation, quality, and supply chain management. Prior to joining Schaeffler India, he served as Managing Director and Vice President of Operations at Kelvion India. During his tenure at Kelvion, he led operations and business performance while driving manufacturing excellence, technology transfer, and capacity expansion initiatives.

His earlier career includes leadership roles at Cummins, Eaton, and Sterlite Technologies, where his focus remained on lean manufacturing, operational excellence, continuous improvement, and strategic transformation.

Operational Context

Schaeffler India operates with a dedicated workforce of over 3,800 employees and maintains three R&D centers alongside five sales offices. The company offers precision engineering solutions for electric mobility, CO2-efficient drives, chassis solutions, and renewable energies. With an 80-year global legacy and a presence in India for over 60 years, the company continues to expand its industrial and automotive aftermarket network.

The appointment aligns with Schaeffler Group’s broader strategy to make motion more efficient, intelligent, and sustainable. The group employs around 110,000 people across more than 250 locations in 55 countries.

Schaeffler India Limited reported a 17.5% year-on-year increase in revenue from operations to ₹26,814 million for the quarter ended June 30, 2026 (Q2FY26), driven by double-digit growth across its Automotive Technologies, Vehicle Lifetime Solutions, and Intercompany Exports segments. The company’s profit after tax (PAT) for the period stood at ₹3,367 million, reflecting a net profit margin of 12.6%. While top-line growth remained robust, earnings quality faced marginal pressure from geopolitical cost developments, and free cash flow declined significantly due to working capital requirements.

Financial Performance for Q2FY26

Revenue from operations for the second quarter of FY26 was ₹26,814 million, marking a 17.5% increase compared to the corresponding quarter of 2025 and a 7.0% rise over the preceding quarter. Profit before tax (PBT) before exceptional items was ₹4,525 million, up 13.7% year-on-year. The PBT margin for the quarter was 16.9%, compared to 17.4% in the same period last year and 17.0% in the preceding quarter.

Earnings before interest, tax, depreciation, and amortization (EBITDA) before exceptional items stood at ₹5,132 million, representing a 19.1% margin. This marks a slight contraction from the 19.7% margin recorded in Q2FY25. Management attributed the dip in earnings quality to increased costs linked to geopolitical developments, including fuel price volatility and currency fluctuations.

Segmental Growth and Business Developments

The revenue growth was broad-based across key segments. Automotive Technologies saw a 33.3% YoY surge, driven by new business wins in clutches for passenger vehicles and double clutches for tractors. Vehicle Lifetime Solutions grew 9.9% YoY, supported by increased market coverage through FEAD timing kits, bearings, and lubricants. Intercompany Exports & Others rose 23.9% YoY.

In the Bearings and Industrial Solutions segment, Schaeffler secured new business wins for cylindrical roller bearings, deep groove ball bearings, spherical roller bearings, tapered roller bearings, and plain bearings for the raw material sector. Additionally, momentum continued in non-road bearings for the two-wheeler segment.

Cash Flow and Working Capital Dynamics

Free cash flow (FCF) for Q2FY26 dropped sharply by 66.3% YoY to ₹965 million, down from ₹2,868 million in the previous year. This decline was primarily attributed to an increase in working capital, which rose to ₹20,291 million in Q2FY26 from ₹16,238 million in Q2FY25. Working capital as a percentage of sales increased to 17.9% for the three months ended June 2026, compared to 18.5% in the same period last year. Management indicated that the working capital increase is mainly due to inventory buildup and expects it to be managed in coming quarters.

Capital expenditure (Capex) for the quarter was ₹958 million, keeping the framework on track. For the half-year ended June 30, 2026, total Capex stood at ₹1,746 million, amounting to 3.6% of sales.

What the Numbers Show

The divergence between strong revenue growth (17.5%) and declining free cash flow (-66.3%) highlights a temporary liquidity constraint driven by inventory accumulation rather than operational inefficiency. With EBITDA margins holding above 19% despite geopolitical cost pressures, the core profitability remains resilient. The significant drop in FCF suggests that near-term cash generation will depend on inventory normalization, while the sustained double-digit growth in automotive technologies indicates strong demand visibility for the remainder of FY26.