Schaeffler India Ltd Q1 FY27 Results Analysis: Revenue Surges 17.5%, Cash Conversion Weakens

Schaeffler India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,681.41 Cr (+17.50% YoY) and PAT growth of +13.67% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 17.5% YoY with strong automotive and export momentum, but cash conversion weakened due to a large inventory build ahead of GST reforms. The balance sheet remains near debt-free, and the medium-term growth trajectory is intact, though margin compression in the mobility segment and subsidiary losses are near-term drags.

Key Investment Insights

Key Positives

• Revenue grew 17.5% YoY to Rs.2,681.41 Cr with sequential acceleration of 7% QoQ
• Automotive Technologies segment grew 33.3% YoY, driven by record PV dispatches and content-per-vehicle gains
• Intercompany Exports grew 23.8% YoY, well above the 10% minimum target
• Others segment margin expanded sharply to 21.17% from 15.14% YoY, driven by price excellence and exit from unprofitable categories
• EBITDA margin remained flat sequentially at 18.71%, with no structural deterioration

Risk Factors

• Material cost ratio rose to 72.16% from 64.07% YoY due to inventory build, masking underlying margin
• Operating cash flow fell 44.5% YoY to Rs.411.25 Cr due to working capital outflow of Rs.414 Cr
• Inventory surged 27% to Rs.2,221.26 Cr since Dec 2025, tying up significant cash
• Mobility segment margin compressed 174 bps YoY to 13.87%, reflecting product mix and one-time tooling costs
• Subsidiary KRSV incurred losses of Rs.10.95 Cr in Q2, diluting consolidated PAT by ~3.3%