Schaeffler India Q2 FY27: Consol PAT +21% YoY to ₹349 Cr, margins compress vs H2 outlook

Schaeffler India's consolidated revenue from operations rose 26.9% YoY (and 11.9% QoQ) to ₹3,089 Cr for the quarter ended September 30, 2026, with consolidated PAT up 20.65% YoY (+7.1% QoQ) to ₹349 Cr — EPS ₹22.3 against ₹18.5 a year ago. Both lines beat the Street: consensus had pegged EPS at roughly ₹21.70 on revenue of ~₹2,755 Cr (analyst estimates tracked by simplywall.st), and our own pre-result preview had flagged a PAT band of ₹310-330 Cr; the actual ₹349 Cr print clears that range by 5.8-12.6%. Standalone PAT, at ₹370 Cr (EPS ₹23.7), ran about 6% ahead of the consolidated number — the gap traces to KRSV Innovative Auto Solutions, the 100%-owned subsidiary, which posted a net loss of roughly ₹19.6 Cr for the quarter. No exceptional items were disclosed on either statement, so the YoY growth above is also the adjusted figure. Profit growth trailing revenue growth points to margin compression: consolidated EBITDA margin (PBT plus depreciation and finance costs, less other income, over revenue) came in at 17.38%, down from 18.73% a year ago and 18.08% in the June quarter, while net margin slipped to 11.30% from 11.74% YoY. Cost of materials and other expenses both grew broadly in line with revenue, but the sequential OPM decline — the second straight quarter of compression — lands on the cost side management flagged last quarter: wage and commodity pass-through negotiations with OEMs that have not yet closed. By segment, the 'Others' bucket (largely Bearings & Industrial Solutions aftermarket/exports) grew segment profit 43.9% YoY to ₹147 Cr, outpacing the core Mobility components segment's 11.4% YoY profit growth to ₹296 Cr; within revenue, Automotive Technologies was the standout at +34.9% YoY to ₹1,103 Cr, consistent with the EV/localization tailwinds the Street had been citing pre-result. Management's prior concall (cautious tone, cautiously-optimistic outlook) guided to H2 margin recovery via FX indexation and price corrections — this is the first quarter of that H2 window, and margins moved the wrong way, so that guidance is not yet being met. No separate management press release was available for this filing to cross-check against the numbers. The board approved results at its scheduled October 27 meeting alongside appointing new cost auditors; the quarter itself predates the October 20 MD arrest and October 23 bail/stayed-investigation development, so today's print doesn't reflect that overhang, though it remains the dominant near-term narrative for the stock. Capex progress toward the ₹400-500 Cr CY26 target (₹175 Cr spent in H1) is not disclosed in this statement and could not be confirmed this quarter. Going into Q3 FY27, the test is whether the guided FX/price-led margin recovery actually shows up — this quarter didn't deliver it — alongside clarity on the MD's legal situation and confirmation that the ₹400-500 Cr capex plan remains on pace.