Schaeffler India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Schaeffler India Ltd trades at ₹4,146, in a confirmed uptrend and 15 weeks into that stage. That is +3.6% against its own 200-day average. It sits at 72% of a 52-week range of ₹3,600 to ₹4,357. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (5 weeks and counting).

Today the stock is in a confirmed uptrend — week 15 of stage 2, confirmed. At ₹4,146 it trades +3.6% versus its 200-day average and sits at 72% of its 52-week range (₹3,600–₹4,357).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +432% while the NIFTY 500 moved +272% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (5 weeks and counting; last ahead the week of 2026-06-24) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 13th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Schaeffler India Ltd trades at 51.2× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 56.6×, measured across 3.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 51.2× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 56.6× measured over 3.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +22.5% against a −1.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +10.2%/yr price move, ~+13.1%/yr came from earnings growth and ~−2.9 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Schaeffler India Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 28.8% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

62.3/100 — rank 2 of 7 in Bearings · 100% evidence confidence

Schaeffler India Ltd scores 62.3 out of 100 against the 7 companies it is compared with in Bearings, ranking 2. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -4.3% and the one-year return is -1.3%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 27.9 + 18.5 + 9.7 + 6.2 = 62.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Schaeffler India Ltd reported ₹2,761 Cr of revenue in the Jun 26 quarter, +17.3% year on year. That is the 12th straight quarter of year-on-year growth. Over 3 years it has compounded at 12.1% a year. The last full year, FY25, came in at ₹9,686 Cr. The last four reported quarters add to ₹10,506 Cr.

Schaeffler India Ltd reported ₹2,761 Cr of revenue in the Jun 26 quarter, +17.3% year on year. That is the 12th straight quarter of year-on-year growth. Over 3 years it has compounded at 12.1% a year. The last full year, FY25, came in at ₹9,686 Cr. The last four reported quarters add to ₹10,506 Cr.

FY25 revenue came in at ₹9,686 Cr (+17.7% on the year), capping 3 years at 12.1% compound. The latest quarter (Jun 26) printed ₹2,761 Cr, +17.3% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +19.7% growth against the decade's 12.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +19.7% over the last 4 quarters against +16.7%/yr over the last 8 — stabilising; TTM profit +23.8% vs +17.5%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 18.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Schaeffler India Ltd's operating margin is 18.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 18.0% to 19.0%. The current quarter sits inside that band.

Schaeffler India Ltd's operating margin is 18.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 18.0% to 19.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 18.0%, +0.0 pp against the same quarter a year ago. Across 4 fiscal years the operating margin has ranged 18.0%–19.0%.

🚨 Why the margin moved: operating margin went −0.2 pp year on year while gross margin went −0.4 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +13.6% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Schaeffler India Ltd earned ₹326 Cr of net profit in the Jun 26 quarter, +13.6% year on year. It is the 10th consecutive quarter of growth. Full-year FY25 profit was ₹1,150 Cr. The 3-year compound rate is 9.4%. That is 11.8% of the quarter's revenue. The same quarter a year earlier earned ₹287 Cr.

Schaeffler India Ltd earned ₹326 Cr of net profit in the Jun 26 quarter, +13.6% year on year. It is the 10th consecutive quarter of growth. Full-year FY25 profit was ₹1,150 Cr. The 3-year compound rate is 9.4%. That is 11.8% of the quarter's revenue. The same quarter a year earlier earned ₹287 Cr.

Jun 26 profit was ₹326 Cr, +13.6% year on year — the 10th consecutive quarter of growth. On the full year, FY25 printed ₹1,150 Cr (+22.5%), and the 3-year compound rate is 9.4%.

Why profit moved: revenue contributed +17.3% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +24.3% vs revenue +19.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 101% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 101% of Schaeffler India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY25 that was ₹1,290 Cr of operating cash against ₹1,150 Cr of profit. After ₹454 Cr of capital spending, ₹836 Cr was left as free cash.

FY25: operating cash of ₹1,290 Cr against reported profit of ₹1,150 Cr, leaving free cash of ₹836 Cr after ₹454 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 101% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 101%: the cash cycle held roughly steady between FY22 and FY25 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 2.4× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹2,006 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Schaeffler India Ltd's cash conversion cycle runs 68 days in FY25, up from 66 days in FY22. Capital spending ran ₹2,006 Cr over the last 3 years. At FY25 sales of ₹9,686 Cr each day of that cycle holds about ₹26.5 Cr, so roughly ₹1,805 Cr sits inside the business at any moment.

FY25: debtors at 62 days, inventory at 109 days — roughly 3.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 68 days, looser than FY22's 66.

The full loop: cash goes out to suppliers and production on day 0; stock waits 109 days to sell; customers pay about 62 days after that; and suppliers themselves are paid at 104 days — netting out to the 68-day cycle.

In money terms: at FY25 sales of ₹9,686 Cr, each day of the cycle holds about ₹26.5 Cr — so the 68-day loop keeps roughly ₹1,805 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2,006 Cr over the last 3 fiscal years against ₹849 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹334 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 27% and the ROIC − WACC spread is +13.5 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Schaeffler India Ltd earns a ROCE of 27% in FY25. That is up from a trough of 25% in FY24. Return on invested capital clears the cost of that capital by +13.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 11.9% net margin on 1.18× asset turns.

FY25 ROCE is 27%, recovered from a FY24 trough of 25% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): 11.9% net margin × 1.18× asset turns × 1.36× balance-sheet leverage ≈ 19.1% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 25.5% − 12.0% = a +13.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Schaeffler India Ltd carries total debt of ₹55.0 Cr against shareholder equity of ₹6,048 Cr as of Mar 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.02 in FY22 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹55.0 Cr against shareholder equity of ₹6,048 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.02 (FY22) to 0.01 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 1.5 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.5 points of Schaeffler India Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 16.2% of the company. Foreign institutions moved −1.4 points over the same window, to 4.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.5 points over 8 quarters to 16.2%; Foreign institutions: −1.4 points over 8 quarters to 4.4%; Promoters: +0.0 points over 8 quarters to 74.1%.

Why the register moved: domestic institutions drove it (+1.5 points), absorbed on the other side by foreign institutions (−1.4 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Schaeffler India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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