Strong Q4 Performance Driven by Volume Growth and Exports
Schaeffler India Ltd reported a sharp rise in earnings for the fourth quarter of its January to December financial year, reflecting sustained demand and improved operating performance.The company posted a net profit of ₹322.3 crore in Q4, marking a 35.9 percent increase from ₹237.2 crore in the same quarter last year. Revenue for the quarter climbed 27.5 percent to ₹2,724 crore, compared to ₹2,136 crore a year earlier.
EBITDA rose 30.8 percent year on year to ₹484.5 crore from ₹370.5 crore. The EBITDA margin improved to 17.8 percent, up from 17.3 percent in the corresponding quarter of the previous year, indicating better operating leverage.
Profit before tax for the quarter stood at ₹445.5 crore, up 31.5 percent compared to Q4FY24. The PBT margin came in at 16.9 percent, including a negative 0.8 percent impact from the labor code. This compares with 16.3 percent in Q4FY24 and 17.5 percent in Q3FY25.
Full-Year Performance Shows Double-Digit Growth
For the full year ended December 31, 2025, revenue from operations stood at ₹9,395.3 crore, registering a 16.3 percent increase over 2024.Profit before tax for the 12-month period rose 22.4 percent to ₹1,612 crore. The PBT margin improved to 17.2 percent from 16.3 percent in 2024.
Net profit for the year reached ₹1,196.2 crore, translating into a net profit margin of 12.7 percent, compared to 12.1 percent in the previous year.
The company stated that growth momentum remained strong, supported by domestic business and intercompany exports. Earnings quality improved due to volume gains and enhanced capital efficiency.
Dividend Recommendation for FY2025
The board of directors has recommended a dividend of ₹35 per equity share of face value ₹2 each for the year ended December 31, 2025. Subject to shareholder approval at the upcoming annual general meeting, the dividend will be paid within 30 days from the date of the AGM.Impact of New Labor Codes
During the reporting period, the company recognized an incremental employee benefit expense of ₹21 crore. This primarily relates to gratuity obligations arising from changes in wage definitions under the new labor codes notified by the Government of India on November 21, 2025.Management Commentary
Harsha Kadam, Managing Director and Chief Executive Officer, said the company continued its growth trajectory, supported by strong performance across domestic and intercompany exports. He noted that demand traction in the automotive industry, following GST reforms in September and continued business wins across divisions, contributed to the quarter’s performance.Schaeffler India Share Price Movement
Shares of Schaeffler India Ltd ended at ₹4,081.20 on the BSE on February 24, gaining ₹131.60 or 3.33 percent for the day, following the earnings announcement.The latest results reinforce the company’s steady operational growth and margin expansion across both quarterly and full-year performance.
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