Schaeffler India (505790) Q2 24/25 earnings summary

Executive summary

• Achieved strong double-digit revenue growth in Q2 2025, with broad-based performance across all segments and continued focus on operational efficiency and localization initiatives.

• Quality of earnings improved, driven by volume growth in local products and operational efficiency.

• Recognized with multiple awards from major customers and agencies for quality, delivery, CSR, water conservation, and diversity initiatives.

• Inaugurated new manufacturing facilities in Savli and Tamil Nadu, and commenced e-axle series supplies, marking milestones in capacity expansion and e-mobility.

• Board approved unaudited financial results for Q2 and H1 2025; noted resignation of an Independent Director.

Financial highlights

• Q2 2025 consolidated revenue reached ₹23,525.9 million, up 10.1% year-over-year and 8.2% sequentially; H1 2025 revenue at ₹43,921 million, up 12% year-over-year.

• EBITDA for Q2 2025 was ₹4,489 million (19.7% margin), up 16.6% year-over-year; PAT at ₹2,962.3 million (13% margin), up 16.8% year-over-year.

• Free cash flow improved to ₹2,868 million in Q2 2025 from negative in Q2 2024; net cash from operating activities for H1 2025 was ₹7,109 million.

• CapEx for Q2 2025 was ₹1,002 million, focused on growth and localization.

• Basic and diluted EPS (consolidated) for Q2 2025: ₹18.4, up from ₹15.7 in Q2 2024.

Outlook and guidance

• Export order book secured for the year, with sustained growth expected in Asia-Pacific; future growth dependent on global geopolitical and market conditions.

• CapEx to ramp up from 2026, averaging EUR 100 million annually over five years, with current focus on capital efficiency.

• Continued focus on localization, targeting above 80% by 2025/2026.

• Long-term growth objectives supported by manufacturing expansion and e-mobility initiatives.