Shares of mid-cap company engaged in manufacturing and distribution of high-precision roller and ball bearings, saw its shares surged nearly 9 percent in Wednesday’s trade after the company reported strong Q4 results and laid out an optimistic growth roadmap for FY26.
Price Action
During Wednesday’s trading session, Schaeffler India Ltd shares hit an intra-day high of Rs.3,566.00 per share, soaring 8.6 percent from its previous close of Rs.3,282.80 each. The share has since retreated and trading at Rs.3,407.30 per share. Over the past five years, the stock has delivered over 400 percent returns.
Financial Performance
Schaeffler India Ltd experienced a significant rise, fueled by strong growth in both revenue and net profit, as reflected in its latest financial results.
In Q4 FY25, the company reported revenue of Rs.2,207.9 crore, reflecting a 16 percent increase compared to Rs.1,904.2 crore in Q4 FY24. However, on a quarter-on-quarter basis, revenue saw a slight decline of about 1.5 percent from Rs.2,170.8 crore in Q3 FY25, though overall business momentum remained robust.
The net profit for Q4 FY25 stood at Rs.251.6 crore, marking a 14.5 percent year-on-year increase from Rs.219.7 crore in the same quarter last year. On a sequential basis, net profit saw a marginal decline of around 2.4 percent compared to Rs.257.2 crore in Q3 FY25, indicating slight pressure on earnings.
Segmental Revenue
The total revenue for the company across various segments for the period is as follows: Automotive Technologies generated Rs.6,941.7 crore, while Vehicle Lifetime Solutions contributed Rs.3,191.4 crore. Bearings & Industrial Solutions reported revenue of Rs.8,493.6 crore, and Intercompany Exports & Others accounted for Rs.3,117.4 crore. The overall revenue from operations, combining all segments, totaled Rs.21,744.1 crore.
In terms of segment results, the Mobility Components and Related Solutions segment recorded a profit of Rs.2,057.8 crore, while the Others segment posted a profit of Rs.1,039.6 crore before unallocable income, finance costs, and tax.
Capex and EBITDA Margin Guidance
The company has outlined its capital expenditure (Capex) plans for FY26, with an anticipated investment range of Rs.450 crore to Rs.500 crore. Additionally, it has provided an EBITDA margin guidance of 20-22 percent, reflecting a strong focus on profitability and operational efficiency in the upcoming fiscal year. These strategic investments are expected to support the company’s growth trajectory and margin expansion goals.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 23.72 percent and a Return on Equity (ROE) of 17.6 percent. Its Price-to-Earnings (P/E) ratio stands at 54.62, higher than the industry average of 48.57. Furthermore, the company maintains a current ratio of 2.88, a debt-to-equity ratio of 0.01, and an Earnings Per Share (EPS) of Rs.60.06.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
