Schaeffler India Limited , a leading industrial and automotive supplier, has reported a strong financial performance for the second quarter, with significant growth in revenue and profitability.

Financial Highlights

The company achieved a revenue of INR 2,282.00 crores in Q2, marking a 10.1% year-on-year growth and an 8.2% sequential increase. This robust performance was driven by strong demand across various segments, particularly in automotive technologies, vehicle lifetime solutions, and exports.

Schaeffler India's profitability also saw notable improvements:

• EBITDA reached INR 449.00 crores, with a margin of 19.7%
• Profit after tax stood at INR 296.00 crores, representing a 13% margin
• Free cash flow generation was impressive at INR 287.00 crores

Segment Performance

The company's diverse business portfolio contributed to its strong performance:

New Manufacturing Facility

In a significant development, Schaeffler India inaugurated its fifth manufacturing facility in Bangalore. This new plant, dedicated to clutch and drivetrain applications, represents an investment of INR 330.00 crores. The facility's first hall, spanning 16,500 square meters, has already commenced production, with potential for further expansion.

E-Mobility Progress

Schaeffler India has begun series production of e-axles for the Tata Harrier platform, marking an important milestone in its e-mobility journey. The company has set up a partial production line at its Talegaon plant and is moving into Phase-2 of expansion to increase localization.

Localization and Efficiency

The company continues to focus on localization and efficiency improvements:

• Localization rate increased to 78% from 76% in the previous quarter
• Capacity utilization across plants remains above 85%

Future Outlook

Harsha Kadam, Managing Director and CEO, commented on the results: "We have delivered a strong performance in Q2, with double-digit growth year-on-year. Our focus on quality of earnings, efficiency, and cost management continues to yield positive results. We remain agile in our CAPEX investments, closely monitoring market developments."

Schaeffler India's robust performance, coupled with strategic investments in new technologies and manufacturing capabilities, positions the company well for sustained growth in the evolving automotive and industrial sectors.

Additionally, the parent company Schaeffler AG has announced a €500 million investment plan for India over the next five years starting 2026, further reinforcing the company's commitment to the Indian market and its growth potential.

Schaeffler India Limited , a leading motion technology company, has announced robust financial results for the second quarter, showcasing sustained growth and improved profitability.

Key Financial Highlights

• Revenue from operations for Q2 stood at INR 22,821.00 million, marking a 10.1% increase year-over-year (YoY) and an 8.2% rise quarter-over-quarter (QoQ).
• Profit Before Tax (PBT) reached INR 3,980.00 million, up 17.1% YoY, with the PBT margin improving to 17.4% from 16.4% in the previous year's Q2.
• Net Profit for the quarter was INR 2,962.00 million, with a net profit margin of 13.0%.

Half-Year Performance

For the first half of the year (January-June):

• Revenue from operations grew by 12.0% YoY to INR 43,921.00 million.
• PBT increased by 16.7% YoY to INR 7,537.00 million, with the PBT margin expanding to 17.2%.
• Net profit reached INR 5,616.00 million, with the net profit margin improving to 12.8% from 12.3% in the same period last year.

Operational Highlights

Schaeffler India's performance was driven by broad-based growth across all business segments:

1. Automotive Technologies: Revenue grew by 13.3% YoY.
2. Vehicle Lifetime Solutions: Reported a strong 13.0% YoY increase.
3. Bearings and Industrial Solutions: Showed a modest 2.7% YoY growth.
4. Intercompany Exports and Others: Witnessed significant growth of 22.8% YoY.

The company's domestic business grew by 8% YoY, while maintaining a positive QoQ trend with a 6% increase.

Strategic Developments

Schaeffler India continues to focus on long-term growth through various initiatives:

1. New Manufacturing Facility: The company inaugurated its fifth manufacturing facility in Shoolagiri, Tamil Nadu, dedicated to producing conventional and electrified powertrain technologies.
2. E-Mobility Milestone: Schaeffler's e-Propulsion technology has been integrated into the Harrier.ev, showcasing the company's capabilities in electric drive systems.
3. Localization and Efficiency: The company's strategic priority on localization efforts has contributed to improved quality of earnings.

Management Commentary

Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India, commented on the results: "I am pleased to share that we registered QoQ as well as YoY higher revenue across all businesses and continued to sustain on our trajectory of registering double-digit growth for the fifth consecutive quarter. Quality of earnings continued to improve given efficiency measures and concentrated efforts on our strategic priority of localization. This coupled with improved financial and operating metrics resulted in a good H1. We remain committed to delivering results and creating value for our stakeholders as we approach the remainder of the year."

Looking Ahead

With its strong performance in the first half, Schaeffler India is well-positioned to capitalize on the growing demand for motion technology solutions. The company's focus on innovation, localization, and operational efficiency is expected to drive sustainable growth in the coming quarters.

Investors and stakeholders can look forward to Schaeffler India's continued efforts in pioneering motion technology and creating value in the Indian market.