Localization strategy driving margin expansion
Expected: OngoingHIGH confidence
What: Ongoing localization efforts contributing to 43bps YoY OPM improvement
“clear focus on localization, which we continue to march at”
Schaeffler India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +16.4%Strong5w Streak
In Week of Mar 28, 2026, Schaeffler India Ltd (Bearings) is outperforming Nifty 500 with +16.4% relative strength. Fundamentals: Strong. On a 5-week streak.
Max Opportunity
What's Happening
📈PE contracting while earnings accelerate — market hasn't priced in the growth
🎯Earnings accelerating with expanding margins — double tailwind
🌐FII stake decreased 0.7% this quarter
💰Trading 22% below estimated fair value
Earnings Acceleration Triggers
1. Localization strategy driving margin expansion
OngoingHIGH
2. Volume growth across all business segments
Q4 FY26HIGH
3. Operating leverage from double-digit growth
Q4 FY26-Q1 FY27HIGH
Key Risks
1. Regulatory changes impacting labor costs
MEDIUM2. Margin volatility from sequential decline
LOWKey Numbers
PAT Growth YoY
+36%
Accelerating
Revenue YoY
+28%
Stable
Operating Margin
18.0%
+100 bps YoY
PE Ratio
54.2
Current Price
₹3,985
Dividend Yield
0.88%
Fundamental Score
66/100
Strong
3Y PAT CAGR
+9%
Market Cap
62.3K Cr
Valuation
Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Schaeffler India Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Feb 28, 2026
Volume growth across all business segments
Expected: Q4 FY26HIGH confidence+₹270 Cr revenue
What: Strong growth in automotive, industrial and export segments driving revenue
Impact: +₹270 Cr revenue
“automotive brought into the system for the quarter INR270 crores, aftermarket too contributing INR43 crores, Bearings and Industrial Solutions also bringing in INR120 crores”
Operating leverage from double-digit growth
Expected: Q4 FY26-Q1 FY27HIGH confidence
What: Sustained growth improving earnings quality and capital efficiency
“EBITDA at 19.6%, which definitely is better than the 18.5% that we delivered last year”
What Are the Key Risks for Schaeffler India Ltd?
Earnings deceleration risks from management commentary
Regulatory changes impacting labor costs
MEDIUMTrigger: Implementation of new labor code
Impact: -80 bps margin impact
Management view: attributing almost 0.8% for the quarter and which we have already absorbed that in the results that you see
Monitor: Sequential margin trends
Margin volatility from sequential decline
LOWTrigger: Continued sequential margin decline
Impact: -96 bps margin impact
Management view: Not explicitly addressed
Monitor: QoQ margin trajectory
What Is Schaeffler India Ltd's Management Saying?
Key quotes from recent conference calls
“clear focus on localization, which we continue to march at — Management”
“EBITDA at 19.6%, which definitely is better than the 18.5% that we delivered last year, resulting in an EBIT margin of 16.1%, again, better than the previous year's 15.2% — Management”
“very strong top line growth that we have demonstrated — Management”
“We continue with a clear double-digit growth momentum, which we have delivered every quarter and we have sustained that on a much stronger footing in the Q4 — Management”
What Is Schaeffler India Ltd's Management Guidance?
Forward-looking targets from management for next 2-4 quarters
Management Tone: BULLISH
Key Milestones
• Sustained double-digit growth momentum
• Continued focus on localization
How Fast Is Schaeffler India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +28% | +12% | Stable |
| PAT (Net Profit) | +36% | +9% | Accelerating |
| OPM | 18.0% | +100 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 28, 2026.
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Frequently Asked Questions: Schaeffler India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Schaeffler India Ltd's latest quarterly results?
Schaeffler India Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +35.9% (accelerating)
- Revenue Growth YoY: +27.5%
- Operating Margin: 18.0% (expanding)
Is Schaeffler India Ltd's profit growing or declining?
Schaeffler India Ltd's profit is growing with an accelerating trend.
- PAT Growth YoY: +35.9% (latest quarter)
- PAT Growth QoQ: +11.4% (sequential)
- 3-Year PAT CAGR: +9.4%
- Trend: Accelerating — latest quarter growth stronger than prior
What is Schaeffler India Ltd's revenue growth trend?
Schaeffler India Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +27.5%
- Revenue Growth QoQ: +11.9% (sequential)
- 3-Year Revenue CAGR: +12.2%
How is Schaeffler India Ltd's operating margin trending?
Schaeffler India Ltd's operating margin is expanding.
- Current OPM: 18.0%
- OPM Change YoY: +1.0% basis points
- OPM Change QoQ: -1.0% basis points
What is Schaeffler India Ltd's 3-year profit and revenue CAGR?
Schaeffler India Ltd's long-term compounding rates
- 3-Year Profit CAGR: +9.4%
- 3-Year Revenue CAGR: +12.2%
Is Schaeffler India Ltd's growth accelerating or decelerating?
Schaeffler India Ltd's earnings growth is accelerating with positive momentum on a sequential basis.
- YoY Acceleration: +13.4% bps
- Sequential Acceleration: +10.7% bps
What is Schaeffler India Ltd's trailing twelve month (TTM) performance?
Schaeffler India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹1,000 Cr
- TTM PAT Growth: +22.6% YoY
- TTM Revenue: ₹10,000 Cr
- TTM Revenue Growth: +17.7% YoY
- TTM Operating Margin: 18.3%
Is Schaeffler India Ltd overvalued or undervalued?
Schaeffler India Ltd appears undervalued based on our fair value analysis.
- Valuation Signal: Undervalued
- Current PE: 54.2x
- Price-to-Book: 10.3x
What is Schaeffler India Ltd's current PE ratio?
Schaeffler India Ltd's current PE ratio is 54.2x.
- Current PE: 54.2x
- Market Cap: 62.3K Cr
- Dividend Yield: 0.88%
How does Schaeffler India Ltd's valuation compare to its history?
Schaeffler India Ltd's current PE is 54.2x.
- Current PE: 54.2x
- Valuation Assessment: Undervalued
What is Schaeffler India Ltd's price-to-book ratio?
Schaeffler India Ltd's price-to-book ratio is 10.3x.
- Price-to-Book (P/B): 10.3x
- Book Value per Share: ₹387
- Current Price: ₹3985
Is Schaeffler India Ltd a fundamentally strong company?
Schaeffler India Ltd is rated Strong with a fundamental score of 65.87/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +27.5% (10% weight)
- PAT Growth YoY: +35.9% (10% weight)
- PAT Growth QoQ: +11.4% (10% weight)
- Earnings accelerating (5% weight)
- Margins expanding (10% weight)
Is Schaeffler India Ltd debt free?
Schaeffler India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹55 Cr
What is Schaeffler India Ltd's return on equity (ROE) and ROCE?
Schaeffler India Ltd's return ratios over recent years
- Dec 2023: ROCE 27.0%
- Dec 2024: ROCE 25.0%
- Dec 2025: ROCE 27.0%
Is Schaeffler India Ltd's cash flow positive?
Schaeffler India Ltd's operating cash flow is positive (Dec 2025).
- Cash from Operations (CFO): ₹1,000 Cr
- Free Cash Flow (FCF): ₹949 Cr
- CFO/PAT Ratio: 112% (strong cash conversion)
What is Schaeffler India Ltd's dividend yield?
Schaeffler India Ltd's current dividend yield is 0.88%.
- Dividend Yield: 0.88%
- Current Price: ₹3985
Who holds Schaeffler India Ltd shares — promoters, FII, DII?
Schaeffler India Ltd's shareholding pattern (Dec 2025)
- Promoters: 74.1%
- FII (Foreign): 4.5%
- DII (Domestic): 16.1%
- Public: 5.3%
Is promoter holding increasing or decreasing in Schaeffler India Ltd?
Schaeffler India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 74.1% (Dec 2025)
- Previous Quarter: 74.1% (Sep 2025)
- Change: 0.00% (stable)
How long has Schaeffler India Ltd been outperforming Nifty 500?
Schaeffler India Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Schaeffler India Ltd a new momentum entry or an established outperformer?
Schaeffler India Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Schaeffler India Ltd?
Schaeffler India Ltd has 3 key growth catalysts identified from recent earnings analysis
- Localization strategy driving margin expansion
- Volume growth across all business segments
- Operating leverage from double-digit growth
What are the key risks in Schaeffler India Ltd?
Schaeffler India Ltd has 2 key risks worth monitoring
- Regulatory changes impacting labor costs
- Margin volatility from sequential decline
What did Schaeffler India Ltd's management say in the latest earnings call?
In Q3 FY26, Schaeffler India Ltd's management highlighted
- "clear focus on localization, which we continue to march at — Management"
- "EBITDA at 19.6%, which definitely is better than the 18.5% that we delivered last year, resulting in an EBIT margin of 16.1%, again, better than the p..."
- "very strong top line growth that we have demonstrated — Management"
What is Schaeffler India Ltd's management guidance for growth?
Schaeffler India Ltd's management has provided the following forward guidance for next 2-4 quarters
- Management tone: bullish
- Milestone: Sustained double-digit growth momentum
- Milestone: Continued focus on localization
Is Schaeffler India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Schaeffler India Ltd may be worth studying
- Earnings growth is accelerating — PAT YoY +35.9%
- Operating margins are expanding — OPM at 18.0%
- Valuation: appears undervalued
- Cash flow is positive — CFO ₹1,000 Cr
What is the investment thesis for Schaeffler India Ltd?
Schaeffler India Ltd investment thesis summary:
Research Signals (Bull Case)
- Earnings accelerating — strongest growth trend
- Revenue growing at +27.5% YoY
- Margins expanding
- Appears undervalued
- Growth catalyst: Localization strategy driving margin expansion
Risk Factors (Bear Case)
- Key risk: Regulatory changes impacting labor costs
What is the future outlook for Schaeffler India Ltd?
Schaeffler India Ltd's forward outlook based on current data signals
- Earnings Trend: accelerating
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Undervalued
- Key Catalyst: Localization strategy driving margin expansion
- Key Risk: Regulatory changes impacting labor costs
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.