Schaeffler India Capex Expansion to Cross ₹500 Crore in 2026

Schaeffler India capex expansion is set to accelerate in calendar year 2026 after a deliberate moderation in 2025, as the company strengthens its localisation strategy and aligns investments with rising demand. (Schaeffler) India has indicated that capital expenditure will return to levels seen between 2022 and 2024, with planned investments exceeding ₹500 crore. The move reflects improving capacity utilisation, disciplined capital efficiency, and a structured roadmap to sustain double-digit growth across automotive and industrial segments.

Capex Moderation in 2025 and Strategic Reset

The Schaeffler India capex expansion plan follows a year of moderated investment in 2025, when spending was intentionally reduced to around ₹384 crore. Management prioritised improving utilisation levels and enhancing capital efficiency before committing to fresh large-scale investments. With plant utilisation now exceeding 85%, the company believes the timing is appropriate to scale up expenditure again in a phased and demand-linked manner.

Focus on Capital Efficiency

According to company leadership, the temporary slowdown allowed facilities to optimise output, strengthen productivity, and improve overall equipment efficiency. This disciplined approach ensured that future Schaeffler India capex expansion would be supported by stronger operational fundamentals rather than speculative growth assumptions.

Return to ₹500 Crore Investment Cycle

Beginning 2026, Schaeffler India capex expansion will move back to average annual investment levels seen in the previous three years, starting at over ₹500 crore. The renewed spending cycle is aligned with the parent group’s five-year strategic plan for 2026–2030. Investments will scale progressively as demand visibility strengthens and more products are localised for the Indian market.

Alignment with Parent Strategy

In May 2025, Schaeffler AG reaffirmed its commitment to India by announcing plans to invest more than €100 million annually over five years to expand domestic operations. This global backing strengthens the long-term Schaeffler India capex expansion framework and underlines India’s importance within the group’s broader growth strategy.

Growth Ambitions and Market-Linked Investments

Management has reiterated its focus on sustaining double-digit growth over the medium term. Capacity additions under the Schaeffler India capex expansion program will be aligned closely with revenue growth trends, localisation opportunities, and evolving customer requirements. Leadership emphasised that investments will not be rushed but phased carefully to match market demand.

Localisation as a Core Driver

The company plans to introduce appropriate products into India for localisation, ensuring that investments translate into sustainable market share gains. The localisation strategy reduces import dependence while strengthening supply chain resilience and competitiveness in both automotive and industrial segments.

Financial Performance Supporting Expansion

Strong financial performance provides a solid base for the Schaeffler India capex expansion. In Q4 2025, revenue growth stood at 26.9% year-on-year, reaching ₹2,643 crore. EBITDA margin remained healthy at 19.1%, with EBITDA of ₹505.6 crore. Profit after tax increased to ₹328 crore compared with ₹249 crore a year earlier.

For the full year 2025, revenue growth reached 16.3%, touching ₹9,395 crore. EBITDA margin improved to 19.6%, while net profit stood at ₹1,196 crore. Free cash flow strengthened significantly, supported by improved margins and lower working capital intensity. This financial momentum underpins the upcoming Schaeffler India capex expansion and positions the company for sustained manufacturing scale-up.

With utilisation levels above 85%, improving EBITDA margin trends, and a clear localisation strategy, Schaeffler India capex expansion from 2026 signals a structured return to growth-oriented investments while maintaining operational discipline and capital efficiency.