Schaeffler India Ltd

Meeting Details

• Date: 24/08/26; Type: One-on-One; Mode: Physical; Venue: Pune; Organizer: M&G Investments.

Participants

• Key participants: Company Officials (management).

Purpose

• Purpose: discuss the overall business situation.

Leadership appointment

• Amit Bhalerao appointed Chief Operating Officer, effective August 10, 2026.
• Will lead manufacturing operations across India and drive operational excellence.
• Amit has 23+ years in global manufacturing leadership across multiple firms.
• Prior roles include Managing Director–Operations at Kelvion India and positions at Cummins, Eaton.

Financial Performance

• Q2 revenue INR 2,681 crores, up 17.5% YoY; up 7% vs Q1'26.
• EBITDA INR 513 crores, 19.1% margin; +6.3% QoQ; +14.3% YoY.
• PAT around INR 336-337 crores (about 12.6%).
• Six-months revenue growth about 18%; EBITDA 19.2%; EBIT 15.8%; PAT ~12.6-12.7%.

Segment Update

• Automotive Technologies grew 33% YoY; conventional up ~20%, e-mobility contributed.
• Vehicle Lifetime Solutions grew 9.9%; Bearings & Industrial ~5%; Exports grew 24%.
• Revenue mix: Automotive Technologies 35%; Bearings & Industrial 35%; Vehicle Lifetime 12%; Exports 17%.
• Key wins: tractor double clutch; overrunning pulley; REPXPERT vans for VLS.
• Industrial non-mobility grew double-digit; wind energy timing issues; railways tender-based growth lag.

Capex and Investments

• CY26 capex guidance INR 500 crores; H1 spend INR 175 crores; balance INR 325 crores in H2.
• Capex breakup: automotive 120 crores; automotive technologies 170 crores; Bearings & Industrial 210 crores.
• Sustaining capex small, about 10% of total.

Q&A Highlights

• Industrial segment aims for double-digit growth; capacity and distribution expansion underway.
• Exports in H1 grew ~28% YoY; intercompany allocations and currency tailwinds.
• Exports momentum to be sustained near 15-20% growth; geopolitics acknowledged.
• Aftermarket growth cooled to ~9.9-10%; Hosur capacity constraints; OEM priority.
• Pricing pass-through: auto OEMs indexation; wage-code increases not indexed; FX indexation expected H2.
• Koovers standalone Q2 revenue INR 79 crores; margin hit by sales cutoffs and founders’ bonus; breakeven 2029.
• Automotive Technologies grew 33% YoY; conventional ~20%, e-mobility contributing; market share gains.

Outlook and Guidance

• Exports momentum expected to sustain near 15-20% growth; geopolitical risk acknowledged.
• Capex on track; CY26 capex INR 500 crores; remaining H2 spend to complete.
• Order book solid for the year; management aims to maintain export share around 20% of max exports.

Business overview

• Core segments: Automotive Technologies, Vehicle Lifetime Solutions, and Bearings & Industrial Solutions.
• Intercompany exports and other revenues form a material share of sales.

Operational highlights

• YoY double-digit growth in Automotive Technologies and Vehicle Lifetime Solutions; exports momentum.
• New clutch wins for passenger vehicles; momentum in double clutch for tractors.
• Capex framework on track; portfolio expansion and range extension continues.

Financial performance

• Q2 2026 revenue: 26,814 mn INR; YoY +17.5%, QoQ +7.0%.
• EBITDA: 5,132 mn INR; margin 19.1%.
• PAT: 3,367 mn INR; margin 12.6%.
• 6M 2026 revenue: 51,884 mn INR; YoY +12.0%.
• Capex: 958 mn INR; Free cash flow: 965 mn INR.
• Earnings quality marginally impacted by geopolitical developments.

Capital structure & liquidity

• No debt or equity issuance disclosed in this update.

Strategic priorities & outlook

• Capex framework on track; focus on portfolio expansion and penetration through range extension.
• Exports and intercompany sales remain key growth drivers.

Risks & mitigation

• Geopolitical developments affecting fuel prices and INR; inventory management to mitigate.
• Working capital increases expected to ease in coming quarters.

Governance & leadership

• No governance or leadership changes disclosed in this update.

Business Overview

• Core segments: Automotive Technologies, Vehicle Lifetime Solutions, Bearings and Industrial Solutions.
• Intercompany Exports contribute a portion of revenue.

Operational Highlights

• New business wins in clutch for passenger vehicles.
• Momentum in double clutch for tractors.
• Overrunning Alternator Pulley business wins.
• FEAD timing kits, bearings and lubricants continued.
• Portfolio expansion and range extension.
• Expanded market coverage with CRBs, DGBBs, SRBs, TRBs.
• NRBs for two-wheelers continued momentum.

Financial Performance

• Q2 2026 revenue 26,814 mn INR; YoY growth 17.5%.
• Q2 2026 EBITDA 5,132 mn INR; margin 19.1%.
• PAT 3,367 mn INR; PAT margin 12.6%.
• Consolidated revenue 27,605 mn INR; EBITDA before exceptional 18.5%.
• Capex of 958 mn INR; framework on track.
• Free cash flow 965 mn INR; working capital increase impacting FCF.
• Domestic business up 16.2% YoY; total revenue up 17.5% YoY; QoQ 7.0%.
• 6M 2026 revenue 51,884 mn INR; YoY growth 12.0%.
• Earnings quality marginally impacted by fuel prices and INR depreciation.

Strategic Priorities & Outlook

• Capex framework on track; growth investments maintained.
• Double-digit growth momentum in Automotive Technologies, Vehicle Lifetime Solutions, and Exports.
• Portfolio expansion and range extension to boost penetration.
• Working-capital management to support continued capex and growth.
• Earnings quality may be affected by geopolitics; cost controls and diversification cited.

Meeting Details

• Date and time: July 23, 2026 at 10:30 IST.
• Type and mode: earnings conference call (virtual).
• Event organiser: Schaeffler India Limited.
• Key company participants: MD & CEO; Director Finance & CFO.
• Purpose: discuss Q2 and H1 2026 performance.
• Results release: unaudited results announced on July 22, 2026.
• Presentation: management will present during the call with Q&A.

Meeting Details

• Date and time: 23 July 2026 at 10:30 IST.
• Type and mode: earnings conference call, virtual.
• Event/organiser: Schaeffler India Limited.
• Key participants: MD & CEO; Director Finance & CFO.
• Purpose: discuss Q2 and H1 2026 performance.
• Presentation: senior-management presentation to accompany the call.

Overview

• Launch of Schaeffler India Social Innovation Fellowship 2026-27 to support 10 social innovators across India.
• Focus on entrepreneurs from Tier II, III and rural geographies.

Funding and program features

• Fellows receive Rs 2 Lakhs grant, mentorship, ecosystem access, and post-program tracking.
• 24-week cohort delivered by IIMA Ventures at IIM Ahmedabad.

Implementation and partnerships

• Program implemented by IHFC (I-Hub Foundation for Cobotics) in partnership with India Accelerator.
• IIMA Ventures provides cohort-based mentorship and venture development.

Selection and focus

• Selection involves multi-stage evaluation with a final jury.
• Cohort aims to strengthen and scale social innovations addressing India's challenges.

Meeting Details

• Date: July 22, 2026; Time/Location: not disclosed; to consider unaudited standalone and consolidated results.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for Q2 and H1 ended June 30, 2026.

Other Notes

• Trading window closed from July 1, 2026 to July 24, 2026 inclusive.

Unpaid dividend notification

• Email sent on July 9, 2026 to shareholders with unpaid dividend as of May 31, 2026.
• Requests recipients to update KYC details and claim unpaid/unclaimed dividend.
• Communication issued under Regulation 30 of SEBI LODR as part of campaign.
• No financial figures or changes to dividend policy disclosed.
• No governance changes or material operational updates disclosed.