Synopsis:
Schaeffler India surged over 4% after posting strong Q2 results with double-digit growth in revenue and profit both QoQ and YoY. Margins expanded, operations remained steady, and a new plant was inaugurated. Management remains optimistic, backed by localization efforts and consistent financial momentum across business segments.
Shares of this automotive and industrial component manufacturer company moved higher after it reported a strong set of quarterly numbers with both revenue and profit growing sequentially and annually. Margins also expanded, further strengthening investor sentiment amid steady operational performance.
The stock in focus is Schaeffler India Ltd, which has a market capitalization of Rs 65,005 crore, opened at Rs 4,133 and touched an intraday high of Rs 4,221 compared to its previous close of Rs 4,033 marking a gain of around 4.66 percent from the previous closing price.
What’s the News?
The company announced its Q2 and H1 FY2025 results, reporting a solid uptick across key financial metrics on both quarter-on-quarter and year-on-year basis. The management highlighted consistent double-digit growth and margin improvements, supported by operational efficiency and localization strategies.
Quarter-on-Quarter Performance (Q2FY25 vs Q1FY25), On a sequential basis, Schaeffler India’s revenue from operations rose 8.15 percent sequentially to Rs 2,282 crore in Q2FY25 from Rs 2,110 crore in the previous quarter. Operating profit increased by 7.48 percent to Rs 431 crore, while profit before tax rose 11.79 percent to Rs 398 crore. Net profit for the quarter came in at Rs 296 crore, up 11.70 percent from Rs 265 crore in Q1FY25. PAT margin expanded from 12.6 percent to 13 percent, and EBITDA margin improved from 19.3 percent to 19.7 percent.
Year-on-Year Performance (Q2FY25 vs Q2FY24), On an annual basis, the company’s revenue grew 10.13 percent from Rs 2,072 crore to Rs 2,282 crore. Operating profit increased 13.42 percent from Rs 380 crore to Rs 431 crore. Profit before tax rose 17.06 percent year-on-year, reaching Rs 398 crore compared to Rs 340 crore in the same period last year. Net profit surged 16.53 percent to Rs 296 crore from Rs 254 crore a year ago. The PAT margin expanded from 12.2 percent to 13 percent, while the EBITDA margin improved from 18.6 percent to 19.7 percent.
Comments from Management
Commenting on the results, Mr. Harsha Kadam, Managing Director and Chief Executive Officer, said, – “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 H1’2025. We remain committed to delivering results and creating value for our stakeholders as we approach the remainder of the year.”
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Operational Highlights
During the quarter, Schaeffler inaugurated its fifth manufacturing facility. The Phase 1 construction spans 16,500 square meters and is expected to ramp up by Q4CY25. The entire land parcel for the new plant covers 108,000 square meters, indicating further potential expansion in the medium term.
About the Company
The Schaeffler Group has been pioneering motion technology for over 75 years. Its solutions span electric mobility, CO₂-efficient drives, chassis systems, and renewable energy. The company’s extensive portfolio includes bearing solutions, linear guidance systems, and service offerings like repair and monitoring.
With a workforce of approximately 120,000 employees across 250+ locations in 55 countries, Schaeffler is one of the world’s largest family-owned businesses and a major innovator in Germany’s industrial landscape.
Written by -Manan Gangwar
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