Schaeffler India slips 4.67% despite a modest margin recovery
Revenue and profit fell sequentially, while lower expenses, tax and interest costs partly cushioned the decline.
Filed 29 Apr 2026, 16:24 IST · after market close · Schaeffler India Ltd (SCHAEFFLER)
Key takeaways
- Standalone revenue fell 5.15% qoq to Rs 2,506.96 cr, while net profit declined 2.52% to Rs 319.71 cr.
- Operating margin recovered 0.18 percentage points to 18.68%, but other income contributed 10.6% of profit before tax.
- The stock fell 4.67% after the results, an unusually negative direction against three consecutive prior post-results gains, though close to the 4.4% median move.
Price around the results
Q4 revenue and profit lost sequential momentum
Schaeffler India’s standalone revenue declined 5.15% qoq and net profit fell 2.52%, with EPS down 2.38% to Rs 20.50. The decline was less severe at the profit level because expenses fell 5.36%, slightly faster than revenue. Profit before tax therefore decreased 4.43% to Rs 425.71 cr.
Lower costs lifted margin, but profit quality needs attention
Operating margin increased 0.18 percentage points to 18.68% because expenses contracted faster than revenue. The tax rate fell 1.48 percentage points to 24.90%, while interest expense dropped 31.06%; both provided support to net profit. Other income was 10.6% of profit before tax, a meaningful contribution outside operations.
Margin recovered after Q3, but remains below Q2
The margin decline from 19.78% in Q2FY26 to 18.50% in Q3FY26 stopped in Q4, when it recovered to 18.68%. The company’s margin was 3.72 percentage points above the 14.96% median for the 94 Consumer Discretionary peers that had reported. Management said supply-chain disruptions and inflationary pressures created margin pressure during the quarter.
Management points to capex execution and ATECH working capital
Management said its capex framework remains on track, with moderate investments made during the quarter. It also said free cash flow was adversely affected by higher absolute working capital needed to meet increasing ATECH demand. The presentation said double-digit growth momentum continued in Automotive Technologies, Vehicle Lifetime Solutions and Exports, and that the company won new hydraulic cam-phaser business.
The market reaction broke the stock’s recent pattern
The results were filed after market close, and the stock fell 4.67% on the next trading session, with volume at 2.49 times the reference level. The decline extended to 5.89% after 15 sessions. This was unusual in direction: all three previous post-results reactions were positive, while the 4.67% move was close to the 4.4% median absolute move.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,507 cr | ₹2,643 cr | -5.15% |
| Other income | ₹45 cr | ₹46 cr | -2.02% |
| Expenses | ₹2,039 cr | ₹2,154 cr | -5.36% |
| Operating profit | ₹468 cr | ₹489 cr | -4.24% |
| Operating margin (%) | 18.68% | 18.50% | — |
| Interest | ₹1 cr | ₹1 cr | -31.06% |
| Depreciation | ₹87 cr | ₹88 cr | -1.71% |
| Profit before tax | ₹426 cr | ₹445 cr | -4.43% |
| Tax | ₹106 cr | ₹118 cr | -9.79% |
| Net profit | ₹320 cr | ₹328 cr | -2.52% |
| EPS (₹) | ₹20.50 | ₹21.00 | -2.38% |
Operating margin of 18.68% compares with a Consumer Discretionary sector median of 14.96% across 94 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.67% | -3.92% |
| Next session | -3.53% | — |
| 5 sessions | -1.82% | -1.82% |
| 15 sessions | -5.89% | — |
| 30 sessions | -6.60% | — |
Volume on the results session was 2.49× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported sustained double-digit growth momentum in Automotive Technologies, Vehicle Lifetime Solutions and Exports.
Guidance & outlook
- The company says its capex framework remains on track.
- The company is committed to delivering results and driving long-term stakeholder value.
Expansion
- The company made moderate capex investments during the quarter while keeping its framework on track.
New orders
- The company won new business for hydraulic cam phasers.
Problems & risks
- The company faced margin headwinds from supply-chain disruptions and inflationary pressures.
- Free cash flow was adversely affected by higher absolute working capital needed to meet increasing ATECH demand.
- IIP growth was subdued because of weak domestic demand and capex momentum.
What to watch
- Whether operating margin holds above 18.68% as management addresses supply-chain and inflationary pressures.
- Whether revenue recovers from Rs 2,506.96 cr after the 5.15% qoq decline.
- Whether the tax rate stays near 24.90% rather than the 26.38% reported in Q3FY26.