Schaeffler India's Revenue Growth Outpaces Profit in Q1
The auto ancillary firm posted strong revenue growth but saw its net profit margin contract slightly year-on-year.
Schaeffler India's Q1 FY27 earnings show robust revenue growth of 17.3% YoY, though profit growth of 13.5% lagged, leading to a margin squeeze.
Schaeffler India started fiscal 2027 with solid top-line momentum, though profitability saw some pressure. Revenue for the quarter ended June 2026 grew a robust 17.3% year-on-year, but profit growth of 13.5% was slower, leading to a slight contraction in the net profit margin.
The company's revenue of ₹2,760.55 crore also marked a healthy 6.8% sequential increase from the previous quarter. Profit followed, rising 3.1% quarter-on-quarter to ₹325.78 crore. However, the net profit margin dipped to 11.8% from 12.2% a year ago, indicating that costs rose faster than sales.
A look at the last five quarters shows a consistent upward trajectory in both revenue and profit, with the latest quarter setting a new high for sales.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 2,760.55YoY +17% | 2,585.64 | 2,352.59 |
| Profit (₹ Cr) | 325.78YoY +13% | 316.07 | 287.11 |
| Net Profit Margin (%) | 11.8YoY -3.3% | 12.2 | 12.2 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 11.9%, closely aligning with the latest quarter's performance.
- The company maintains a pristine balance sheet with zero debt and a strong return on equity of 20.21%.
- Over the past year, the stock has delivered a modest return of 4.8%, while its three-year CAGR stands at a healthy 10.3%.
The stock trades at a price-to-earnings (P/E) ratio of 52.8, a premium to the industry average, reflecting the market's expectation for sustained growth from this motion technology leader. The immediate challenge is to translate its impressive sales momentum into stronger bottom-line expansion.
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· SCHAEFFLER
(BSE)
ISIN: INE513A01022
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