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The market expects Schaeffler India to do better than it ever has.
At today’s share price, buyers are assuming Schaeffler India grows about 30% a year, forever. Over the last ten years it actually grew about 16% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 30% growth, against 16% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2025, Schaeffler India's revenue went from ₹4,562 crore to ₹9,686 crore — it compounded at about 11% a year over 7 years.
- Biggest swing factor: Vehicle production. Main risk: Auto cycles.
01The Indian arm of a German engineering group
Schaeffler India, majority-owned by Germany's Schaeffler group, makes bearings, engine and transmission components and industrial products under the FAG, INA and LuK brands.
It supplies vehicle makers, railways, wind turbines and industry, and exports to the group's global network. It reports on a calendar-year basis.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Schaeffler India, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Schaeffler India's record, in plain numbers
Between FY2018 and FY2025, Schaeffler India's revenue went from ₹4,562 crore to ₹9,686 crore — it compounded at about 11% a year over 7 years. Net profit grew from ₹420 crore to ₹1,150 crore, about 15% a year — faster than revenue, so margins widened. In FY2025 it kept 11.9% of revenue as net profit — against a low of 7.7% in FY2020 and a high of 12.8% in FY2022. The latest year added 17.7% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 4,562 | 420 | 9.2% |
| FY2019 | 4,361 | 368 | 8.4% |
| FY2020 | 3,762 | 291 | 7.7% |
| FY2021 | 5,561 | 629 | 11.3% |
| FY2022 | 6,867 | 879 | 12.8% |
| FY2023 | 7,251 | 899 | 12.4% |
| FY2024 | 8,232 | 939 | 11.4% |
| FY2025 | 9,686 | 1,150 | 11.9% |
04How Schaeffler India gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Schaeffler India's value
Vehicle production
Auto demand drives a large share of sales.
Industrial demand
Railways, wind and factories add growth.
Exports
Supplying the parent's network adds volume.
EV transition
New products for electric vehicles.
06What could go wrong
- Auto cycles. Slowdowns hit volumes.
- Parent decisions. Royalties and export allocation are set by the parent.
- The premium. A high valuation assumes steady growth.
07What the full Schaeffler India valuation shows
Sign in free to see the complete Schaeffler India valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Schaeffler's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Bosch India, Timken India and SKF India
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Schaeffler India
What does Schaeffler India make?
Bearings, engine and transmission parts, and industrial products.
Who owns Schaeffler India?
Germany's Schaeffler group holds the majority.
What are FAG, INA and LuK?
Schaeffler's product brands.
Is Schaeffler India overvalued?
At ₹3,586 the market is pricing in roughly 30% sustained growth, against the ~16% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Schaeffler India?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.