Schaeffler India concluded 2025 with sustained double-digit growth, reporting Q4 revenue of ₹26,431 million INR, marking a 26.9% YoY increase. Operational efficiency, localization benefits, and disciplined capital allocation drove margin improvement across all divisions. The company also achieved a significant ESG milestone, improving its S&P CSA Score to 76/100, ranking 1st in India. The Board recommended a dividend of INR 35 per share for the year.
Q4 and Full Year 2025 Performance Summary
Schaeffler India reported robust performance for the fourth quarter (Q4) and the full year (12M) ending December 31, 2025. Key financial highlights for Q4 2025 include:
- Revenue: ₹26,431 million INR, demonstrating a 26.9% YoY growth and 12.0% sequential (QoQ) growth over Q3 2025.
- EBITDA: ₹5,056 million INR, achieving an 18.4% consolidated margin (19.1% standalone).
- PAT: ₹3,280 million INR, with a margin of 12.4%.
- Free Cash Flow (FCF): Robust generation at ₹2,540 million INR for the quarter.
For the full year 2025 (12M), total revenue reached ₹93,953 million INR, reflecting 16.3% YoY growth.
Key Business Messages
The strong financial results were supported by strategic operational achievements:
- Growth Momentum: Continued double-digit growth was sustained across all operating divisions.
- Margin Improvement: Operating margins improved, benefiting from localization efforts, increased volumes, and efficient capital utilization.
- Capital Management: Capex realization was executed as planned, ensuring disciplined financial management.
Segment Performance Highlights
The Automotive Technologies division saw significant YoY growth of 41.6% in Q4 2025 compared to Q4 2024, contributing 35% to the Q4 2025 sales mix. The Bearings and Industrial Solutions segment accounted for 39% of the mix. Automotive business developments focused on Precision and Longevity, including new wins in hydraulic cam phasers and extended-life LV clutches.
In Vehicle Lifetime Solutions, the focus was on Increased market coverage, securing deals for FEAD/Timing Kits in the Passenger Vehicle (PV) segment.
Macroeconomic Context (India)
The economic environment showed resilience:
- GDP: Growth moderated but remained resilient, supported by infrastructure push.
- IIP: Showed strong growth, fueled by policy reforms and capital expenditure momentum.
- Automotive Production: Q4 demonstrated strong YoY growth across categories, with CVs at 12.2%, PVs at 18.9%, and Tractors at 31.5%.
Sustainability Leadership (S&P CSA 2025)
Schaeffler India significantly enhanced its sustainability standing:
- Overall Score: Improved by +40 points from the 2024 score of 36/100, reaching 76/100. This is approximately 2x the 2024 score.
- Ranking: Achieved 1st rank in India and 7th rank globally within its assessed industry segment.
- Score Percentile: Placed in the 98th percentile relative to its peers.
Financial Health & Payouts
Working Capital as a percentage of sales decreased slightly to 17.9% by year-end 2025 (from 19.0% in 2024 12M), reflecting better management alongside improved operating margins.
The Board has recommended a final dividend for 2025 of INR 35 per equity share, which represents a payout ratio of 46% of the standalone PAT, aligning with the target payout range of 30% to 50% of net income.
Summary and Outlook
Schaeffler India is On track to build the leading Motion Technology Company. The company enters 2026 committed to delivering results and driving long-term stakeholder value based on its sustained financial and operational performance throughout 2025.
Source: BSE
