Schaeffler India (505790) Q4 2025 earnings summary

Executive summary

• Achieved strong double-digit revenue growth in Q4 and full year 2025, with annual turnover reaching INR 93,953 million, up 16.3% year-over-year, and Q4 revenue at INR 26,431 million, a 26.9% increase over Q4 2024.

• EBITDA margin improved to 19.6% for the year, with Q4 EBITDA at INR 5,056 million (19.1% margin), and profit after tax for Q4 at INR 3,280 million (12.4% margin).

• Free cash flow generation was robust, totaling INR 10,010 million for 2025, a significant increase from the previous year.

• Dividend per share for 2025 recommended at INR 35, up from INR 28 in 2024, with payout ratio at 46%.

• Statutory auditors issued an unmodified opinion on both standalone and consolidated results.

Financial highlights

• Standalone revenue from operations for FY25 was INR 93,953.2 million, up from INR 80,762.9 million year-over-year; consolidated revenue was INR 96,858.5 million.

• Standalone net profit for FY25 was INR 11,962.5 million; consolidated net profit was INR 11,503.5 million.

• Basic and diluted EPS (consolidated) for FY25 was INR 73.6, up from INR 60.1 year-over-year.

• Working capital as a percentage of sales improved to 17.9% in Q4 2025.

• CapEx for 2025 was INR 3,836 million, executed as planned.

Outlook and guidance

• Capacity utilization across plants exceeded 85%, with CapEx to scale up in 2026 to over INR 500 crores, aligning with a 5-year growth strategy.

• Continued focus on operational efficiency, localization, and disciplined capital allocation for 2026.

• Dividend of INR 35 per share recommended for FY25, subject to shareholder approval.

• Company continues to monitor regulatory changes, especially regarding new labour codes, and will adjust accounting as needed.

• Exports expected to moderate to 5%-10% growth in 2026, following strong recovery in 2025.