Schaeffler India Ltd (SCHAEFFLER) AI Stock Analysis

• Market Cap: ₹673.42B
• Dividend Yield: 0.73%
• Average Volume (3M): 4.06K
• Price to Earnings (P/E): 59.3
• Beta (1Y): 1.17
• Revenue Growth: 14.14%
• EPS Growth: 16.91%
• Country: IN
• Employees: 2,922
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 21.30
• Shares Outstanding: 156,303,670
• 10 Day Avg. Volume: 3,444
• 30 Day Avg. Volume: 4,061
• PEG Ratio: 2.34
• Price to Book (P/B): 10.02
• Price to Sales (P/S): 6.26
• P/FCF Ratio: 64.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 87.13
• Revenue Forecast (FY): ₹108.37B

• Rating: 72 Outperform
• Price Target: ₹4,736.00 ▲(25.28% Upside)
• Action: Upgraded Date: 02/26/26
• Date: Action: Upgraded 02/26/26

The score is driven primarily by strong financial quality—durable profitability and a very conservative balance sheet—supported by bullish trend signals. Offsetting this are overbought technical readings and a demanding valuation (high P/E with low yield), which meaningfully temper the overall rating.

Positive Factors

Conservative Balance Sheet

Extremely low debt-to-equity (~1–2%) and meaningful equity growth provide durable financial flexibility. This conservatism reduces solvency risk through downturns, enables opportunistic capex or M&A funding without stressing liquidity, and supports consistent operations across cycles.

Steady Revenue and Sector-Leading Profitability

Multi-year revenue expansion combined with sustained net margins (~11–13%) and mid-teens EBIT margins indicate durable market demand and pricing power. Consistent profitability signals efficient cost structure and competitive positioning in bearings and components over medium term.

Recovering Cash Generation

The strong rebound in operating cash flow and material FCF recovery show the company's ability to convert earnings to cash over time. This underpins reinvestment capacity and dividend/cover potential, improving resilience despite prior short-term volatility in conversion.

Negative Factors

Volatile Cash Conversion

Wide swings in cash conversion and a very weak FCF year in 2024 (1.0B) indicate working-capital sensitivity or lumpy capex. This variability complicates free-cash-flow forecasting and could constrain spending or returns in weaker cycles, weakening financial predictability.

Margin Softening Risk

Recent margin erosion suggests pressure from input costs, product mix shifts, or competitive pricing. If persistent, this could reduce the company's sector-leading profitability and limit internal funding for growth, making margins a key monitor for medium-term earnings resilience.

End-Market Cyclicality Exposure

Heavy exposure to automotive production volumes and industrial capex makes revenues and utilization cyclical. Durable returns rely on global OEM cycles and industrial investment; downturns in these end markets can meaningfully reduce demand and elongate recovery times.

Schaeffler India Ltd Business Overview & Revenue Model

Company Description

Schaeffler India Limited develops, manufactures, and distributes high-precision roller and ball bearings, and related components worldwide. It offers ball, cylindrical, spherical, and tapered roller bearings, as well as wheel bearings. The company also provides engine and transmission components for front accessory drive systems, chain drive systems, valve train components, shift systems, and a range of needle roller bearings and elements; clutch systems and dual mass flywheels for passenger cars, light commercial vehicles, heavy commercial vehicles, and tractors; and concentric slave cylinder, clutch master cylinder, semi slave cylinder, adapter, and high-pressure pipe assemblies. In addition, it offers engine oil, transmission oil, grease, coolant, hydraulic oil, and shock absorber oil. The company offers its products under the brand names of Schaeffler, LuK, INA, FAG, and Schaeffler TruPower. It serves the construction machinery, electrical engineering, industrial gear, mining and cement, power generation, agricultural engineering, steel plant, motorcycle, textile machinery, machine tool, wind power, pulp and paper, automotive and tractor, precision equipment, machine tools and material handling, car and truck, railway, two wheelers, renewable energy, power transmission, off highway, automation, and heavy, as well as MRO-steel, raw material, power, paper, and pulp industries. The company was formerly known as FAG Bearings India Limited and changed its name to Schaeffler India Limited in July 2017. Schaeffler India Limited was incorporated in 1962 and is based in Pune, India.

How the Company Makes Money

Schaeffler India's revenue model primarily revolves around the sale of high-precision components and systems for the automotive and industrial sectors. The company generates income from its automotive segment by supplying components for both original equipment manufacturers (OEMs) and the aftermarket. Key revenue streams include the sale of bearings, engine components, and transmission systems. In the industrial sector, Schaeffler offers products and services that cater to sectors like aerospace, rail, and construction, further diversifying its income sources. Additionally, strategic partnerships with leading automotive manufacturers and ongoing investments in research and development enable Schaeffler to innovate and maintain a competitive edge, ultimately contributing to its earnings growth.

Schaeffler India Ltd Financial Statement Overview

Summary

Strong fundamentals: steady multi-year revenue expansion, consistently solid sector-leading profitability (net margins ~11–13% since 2021), and an exceptionally low-leverage balance sheet (debt-to-equity ~1–2%) supporting resilience. Key risks are uneven cash conversion (notably weak FCF in 2024 despite a 2025 rebound) and some recent margin softening versus prior peaks.

Income Statement

Revenue has expanded steadily from 2020 to 2025 (annual growth ranging from -13.7% in 2020 to +10.3% in 2025), showing a solid post-2020 recovery and continued momentum. Profitability is strong for the sector, with net margins consistently in the ~11–13% range since 2021 and EBIT margins largely in the mid-teens, indicating good pricing power and cost control. The main watch-out is margin variability: gross margin stepped down in 2025 versus 2023–2024, and EBIT margin has trended slightly lower than the 2022 peak—suggesting mix, input costs, or competitive pressure could be rising.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage: debt-to-equity stays near ~1–2% across the period, providing significant resilience through cycle swings and room for investment. Equity has grown meaningfully over time (supporting asset growth), and returns on equity remain strong (roughly high-teens to ~20% in most years), pointing to efficient capital use. A minor downside is that extremely low debt can also limit return enhancement versus peers if growth opportunities are abundant, but overall financial risk from leverage appears minimal.

Cash Flow

Cash generation is generally positive, with operating cash flow rising to 14.1B in 2025 and free cash flow rebounding sharply to 9.4B after a weak 2024 (free cash flow of 1.0B and a large decline versus 2023). Conversion is mixed: operating cash flow runs at roughly ~39% to ~68% of net income across years, and free cash flow as a share of net income has been volatile (notably very low in 2024 before improving in 2025). The key risk is this uneven cash conversion year-to-year, which may reflect working-capital swings and/or fluctuating capital spending.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	87.79B	96.86B	82.32B	72.51B	68.67B	55.61B
Gross Profit	32.96B	28.01B	30.49B	27.28B	25.99B	20.98B
EBITDA	15.16B	17.63B	14.32B	13.14B	12.88B	9.81B
Net Income	10.12B	11.50B	9.39B	8.99B	8.79B	6.29B
Balance Sheet
Total Assets	73.09B	82.13B	68.83B	62.67B	57.27B	48.96B
Cash, Cash Equivalents and Short-Term Investments	14.53B	18.46B	13.33B	15.62B	15.13B	13.56B
Total Debt	549.90M	952.90M	555.30M	511.00M	573.20M	607.00M
Total Liabilities	18.74B	21.65B	15.48B	14.61B	14.41B	12.43B
Stockholders Equity	54.35B	60.48B	53.34B	48.05B	42.86B	36.54B
Cash Flow
Free Cash Flow	0.00	9.42B	958.50M	3.64B	2.67B	2.82B
Operating Cash Flow	0.00	14.06B	8.40B	8.84B	7.51B	4.65B
Investing Cash Flow	0.00	-4.58B	-245.70M	-5.95B	-5.35B	-3.42B
Financing Cash Flow	0.00	-4.48B	-4.21B	-3.86B	-2.57B	-1.27B

Schaeffler India Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3780.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SCHAEFFLER, the sentiment is Positive. The current price of 3780.2 is below the 20-day moving average (MA) of 3960.30, below the 50-day MA of 3838.65, and below the 200-day MA of 3980.93, indicating a bullish trend. The MACD of 132.84 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SCHAEFFLER.

Schaeffler India Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹320.71B	54.26	―	0.65%	7.34%	2.27%
SCHAEFFLER	72 Outperform	₹673.42B	59.26	―	0.73%	14.14%	16.91%
SWARAJENG	71 Outperform	₹42.55B	23.29	―	2.90%	18.18%	19.70%
TRITURBINE	69 Neutral	₹148.41B	45.46	―	0.75%	3.49%	8.54%
SUNDRMFAST	66 Neutral	₹178.07B	33.30	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
THERMAX	58 Neutral	₹369.78B	51.45	―	0.48%	3.37%	-19.95%

Schaeffler India Ltd Corporate Events

Schaeffler India Files Updated Investor Presentation With Stock Exchanges

Schaeffler India has submitted an investor presentation to the stock exchanges in compliance with disclosure requirements under securities regulations. The filing signals routine engagement with capital markets and provides investors with updated information on the company’s performance and strategy, underscoring its commitment to transparency and regulatory compliance.

The communication, issued from the company’s Pune headquarters and signed by its legal and company secretary function, formally notifies both major Indian exchanges of the new investor material. This step helps ensure equity analysts and shareholders have current data to assess the company’s prospects and may support informed trading and governance oversight.

Schaeffler India Announces Resignation of Non-Executive Director Andreas Schick

Schaeffler India Limited has announced that non-executive, non-independent director Andreas Schick has resigned from the company’s board, effective from the close of business on 31 March 2026, as he prepares to leave the wider Schaeffler Group. The company, which received his resignation letter on 6 February 2026, clarified that there are no additional material reasons for his departure beyond his exit from the parent group, indicating a routine board-level change rather than a signal of operational or strategic shift for stakeholders.

Schaeffler India Not Classified as Large Corporate Under SEBI Norms

Schaeffler India Limited has notified the stock exchanges that, as of December 31, 2025, it does not have any outstanding long-term borrowings of Rs 100 crore or more and therefore does not meet the Securities and Exchange Board of India’s criteria for classification as a “Large Corporate.” As a result, the company is exempt from the initial and annual disclosure requirements applicable to large corporates under the relevant SEBI circular, indicating a relatively low level of long-term debt on its balance sheet and marginally reducing its regulatory compliance burden for the financial year.

Schaeffler India Opens Special Window for Re‑lodgement of Physical Share Transfers

Schaeffler India Limited has notified the stock exchanges that a special window has been introduced for re-lodgement of transfer requests for physical shares, in line with a recent Securities and Exchange Board of India (SEBI) circular. The company has also disseminated details of this special window through its official social media channel, aiming to ensure shareholders holding physical share certificates are informed of the renewed opportunity to regularise or complete pending transfer requests, thereby supporting compliance with evolving regulatory requirements and facilitating smoother share transfer processes for investors.

Schaeffler India Names Maximilian Fiedler as Non-Executive Director from January 2026

Schaeffler India Limited has announced the appointment of Maximilian Andreas Fiedler as an Additional Director in the capacity of Non-Executive Non-Independent Director, effective 1 January 2026, following a recommendation from its Nomination and Remuneration Committee. The appointment, approved by the board via circular resolution, is subject to shareholder approval through a postal ballot or at the next annual general meeting within three months, and Fiedler will be liable to retire by rotation; his extensive experience in finance and regional leadership across the Schaeffler Group, particularly in Asia-Pacific, is expected to strengthen the company’s governance and align its Indian operations more closely with the group’s regional strategy.

Schaeffler India Faces GST ITC Disallowance and ₹3.6 Crore Penalty, Plans Appeal

Schaeffler India Limited has disclosed that the Office of the Additional Commissioner of Goods and Service Tax and Central Excise in Salem, Gujarat has issued an order disallowing certain Input Tax Credit (ITC) and imposing a penalty of about INR 3.6 crore on the company. The alleged contravention relates to ITC claims under the GST framework, but Schaeffler India has stated that the development does not have a material impact on its financials, operations, or other activities, and it is in the process of filing an appeal before the Commissioner of Goods and Service Tax and Central Excise in Salem, indicating the company’s intent to contest the order and limit any regulatory or financial implications.

Schaeffler India Wins CII National Award for Water Management

Schaeffler India has been awarded the CII National Award for Excellence in Water Management 2024–25 for its Jal Samruddhi CSR initiative. This project, in collaboration with the BAIF Development Research Foundation, has significantly improved water security and agricultural productivity in water-scarce regions of Pune, benefiting over 400 rural families. The initiative has led to a 40% improvement in cropping intensity, increased household incomes, and reduced dependency on tanker water, showcasing Schaeffler India’s commitment to community-centric sustainable development.