Schaeffler India export growth outlook moderates to 5–10% in 2026

Schaeffler India export growth outlook for 2026

Schaeffler India export growth is expected to moderate to 5–10% in 2026 after delivering a robust 30–35% expansion in 2025. The moderation reflects a higher base effect and stabilising demand across global markets, particularly in Europe and Asia Pacific. Management indicated that while international demand remains steady, the extraordinary momentum seen in 2025 is unlikely to continue at the same pace. The company’s order book for 2026 remains broadly aligned with the previous year, providing visibility but suggesting a more measured expansion phase.

Order book stability and regional demand trends

According to management, the 2026 order book is consistent with last year’s levels, reinforcing expectations that Schaeffler India export growth will align with broader economic projections. Demand continues to be broad-based across geographies, with Europe and Asia Pacific demand contributing significantly. However, macroeconomic conditions in these regions are expected to temper growth rates compared to the strong rebound phase witnessed earlier.

Export mix and wind segment contribution

Schaeffler India export growth has been driven largely by supplies to group entities and customers across Europe and Asia Pacific. Management clarified that reported export numbers exclude wind-related domestic sales, even if end customers export their equipment. This distinction ensures a clearer assessment of core export performance while reflecting diversified revenue streams.

Wind segment performance and quarterly momentum

The wind segment performance has remained strong, delivering annualised growth of 17–18% over the past year. In the December quarter, the segment recorded steady expansion, with Q4 year-on-year growth of around 4% and a stronger sequential increase of about 15% over Q3. Although not classified under exports, the wind business continues to provide resilience and incremental revenue support alongside Schaeffler India export growth.

December quarter results and financial metrics

The December quarter results highlighted strong operational execution. Revenue rose 26.9% year-on-year to ₹2,643 crore in Q4 2025. EBITDA reached ₹505.6 crore, translating into an EBITDA margin of 19.1%. Profit after tax increased to ₹328 crore from ₹249 crore a year earlier. These financial metrics underline disciplined cost management and healthy demand conditions supporting Schaeffler India export growth and domestic business performance.

Outlook amid normalising global conditions

Looking ahead, Schaeffler India export growth is expected to remain positive but aligned with global economic expansion trends rather than rebound-driven surges. Stable order inflows, diversified regional exposure, and consistent wind segment performance position the company for sustainable growth, even as export expansion moderates to a mid-single-digit range in 2026.