Schaeffler India Plots Rs 500 Crore Capex to Support Growing Order Book

To support its growing order book, Schaeffler India has earmarked Rs 500 crore in capital expenditure for CY26. Of this, approximately Rs 170 crore is dedicated to automotive technologies, with the remainder focused on bearings and the industrial segment, the company stated during a post-results conference call with analysts.

The company reported a resilient second quarter for 2026, characterised by significant market outperformance and a robust pipeline of new business wins across its primary segments. Despite an 8% quarter-on-quarter decline in passenger vehicle (PV) production volumes, the company’s automotive revenue grew by 3.6%, signalling notable market share gains.

Strategic Wins Drive Growth
According to company executives during the analyst call, the Automotive Technologies segment led the expansion with 33.3% year-on-year growth.

This performance was underpinned by several critical new business wins, including contracts for PV clutches, overrunning alternator pulleys, and continued momentum in double clutches for the tractor segment.

The company’s Bearings and Industrial Solutions division also secured substantial new contracts. Key wins included cylindrical roller bearings (CRBs), deep groove ball bearings (DGBBs), and tapered roller bearings (TRBs) for the raw materials sector. In the automotive bearings space, Schaeffler secured business for wheel bearings, water pump bearings, and Gen-2 wheel bearings, alongside sustained demand for needle roller bearings (NRBs) in the two-wheeler segment.

Intercompany exports remained a high-growth area, increasing 24% year on year. This growth was supported by double-digit demand from major global regions, including Europe, China and North America, backed by a robust international order book. In the Vehicle Lifetime Solutions (VLS) segment, revenue growth moderated to 10% as the company prioritised OEM demand amid capacity constraints.

Schaeffler reported revenue from operations of Rs 2,681.4 crore for Q2 2026, a 17.5% increase over the previous year. Net profit for the quarter stood at Rs 336.7 crore, with a net profit margin of 12.6%.

Harsha Kadam, Managing Director and Chief Executive Officer, said in a statement, "Schaeffler India registered a strong growth of 18.1% for the first half of the year. Our Automotive Technologies, Vehicle Lifetime Solutions and Intercompany Exports businesses continued their double-digit growth trajectory. Even for the quarter, despite a challenging market, we recorded 7% QoQ growth. The quality of earnings was marginally impacted by cost pressures arising from geopolitical developments."