Schaeffler India reported a strong performance for the fourth quarter (Q4) of CY25 and the full year 2025. Q4 revenue reached INR 2,643 crores, marking a 26.9% year-on-year growth. The company achieved an annual turnover of INR 9,395 crores. Key highlights included strong performance across automotive and industrial sectors, successful business wins in hybrid technology, and significant improvements in sustainability scoring.
Q4 and Full Year Financial Highlights
Schaeffler India commenced the call by detailing its robust results for the fourth quarter ended December 31, 2025. Quarterly revenue stood at INR 2,643 crores, which was 26.9% higher than Q4 2024 and a 12% sequential increase over Q3 2025. The company concluded the full year with a total turnover of INR 9,395 crores, reflecting a 16.3% growth over the previous year.
EBITDA for Q4 was INR 505 crores, leading to an annualized EBITDA margin of 19.6%. Profit after tax for the quarter was INR 328 crores. The company also noted strong free cash flow generation, bringing in INR 254 crores in Q4 alone, alongside a 56% year-on-year improvement in free cash flow.
Macroeconomic Context and Sector Performance
Management pointed to the resilient Indian economy, noting stabilizing financial conditions driven by policy rate cuts and regulatory relaxation. Inflation remained low, averaging around 2.2% for 2025, with Q4 registering an all-time low of 0.8%. The recent GST 2.0 reform provided a major boost to the automotive industry.
In the industrial sectors, Cement production grew 10% and Steel production grew close to 9%. The automotive sector saw significant rebound, with 2-wheelers growing at 8.6% annually, passenger vehicles at 8%, and tractors at 17.2%. Export performance was also strong, with commercial vehicle exports improving by 58% for the full year.
Business Development and Strategy
The growth story was supported by sustained business development activity across segments. New wins were secured in automotive technology for passenger vehicle clutches and Dual Mass Flywheels. In Bearings and Industrial Solutions, significant wins were recorded in the 2-wheeler sector and specialized industrial applications like spherical and tapered roller bearings for cement and steel sectors.
Regarding the integration of Vitesco (Koovers/KRSV), management confirmed that front-end presence is now fully branded as Schaeffler. They are seeing new business wins, particularly in the BMS (Battery Management System) space for Battery Electric Vehicles. KRSV itself generated INR 81.5 crores in Q4 revenue.
Sustainability and Capital Management
A major milestone noted was the achievement of the S&P Dow Jones Sustainability Index score, where Schaeffler India ranked first in India and seventh globally. The overall CSA score improved by 40 points to 76 out of 100.
Working capital management showed improvement, reducing to 17.9% of sales in Q4 from 19% in the preceding quarter and the previous year. Capex spend for 2025 was moderated, operating at about 4% of sales, as the company focused on leveraging existing capacities (running above 85% utilization). Capex is expected to step up again in 2026 towards the INR 500 crores level.
Shareholder Returns and Outlook
The Board of Directors recommended a dividend payout of INR 35 per share, maintaining the target payout ratio between 30% to 50% of net income. Management concluded by emphasizing the goal of sustaining double-digit growth momentum into 2026 while prioritizing capital efficiency and continued localization efforts (currently at 78%).
Source: BSE
