Schaeffler India will significantly step up capital expenditure in 2026, returning to its previous three-year average investment levels of over ₹500 crore, as the company rides strong capacity utilisation, sustained double-digit growth and improving earnings quality.
The company had deliberately moderated its capex in 2025 to ₹375–400 crore to prioritise capital efficiency and optimise utilisation of installed capacities. However, management indicated that investments will scale up beginning 2026, aligning with the broader capital allocation roadmap for 2026–2030 announced by Group CEO Klaus Rosenfeld.
“Beginning 2026, you will see capex scaling up again,” the management said, adding that investments will continue to focus on market-relevant products and emerging technologies.
Robust Capacity Utilisation
Schaeffler India reported capacity utilisation of over 85% across all its plants, reflecting strong demand traction and efficient operations. The December quarter saw particularly robust performance, with all plants operating well above 85% utilisation.
The company maintained its double-digit growth momentum through every quarter of the year, with the December quarter delivering stronger traction. Improved volume growth has translated into better earnings quality, supported by disciplined capital management.
Focus On Localisation And Efficiency
Localisation remains a strategic priority. The company increased its localisation content to 78% in the latest quarter, reinforcing supply chain resilience and cost competitiveness.
Management highlighted that it continues to closely monitor market developments while calibrating capex and leveraging existing installed capacities. The focus remains on pipeline generation, cost optimisation and operational efficiency.
Industrial Growth Offsets Sectoral Weakness
In the December quarter, the company posted double-digit growth across most industrial segments compared to the previous year, indicating improving demand conditions. However, performance in the wind and rail segments remained relatively weak.
Exports Growth to Moderate
On the exports front, Schaeffler India said its 2026 order book remains in line with 2025 levels. While exports rebounded strongly in 2025 with growth of around 35%, management expects growth to moderate to 5–10% in 2026, reflecting economic growth projections in Europe and Asia-Pacific markets.
Entering 2026 On Strong Fundamentals
Backed by solid fundamentals, strong marketplace traction and improved capital efficiency, Schaeffler India expressed confidence in sustaining growth momentum in 2026.
Schaeffler India is engaged in the development, manufacturing and distribution of high-precision roller and ball bearings, engine systems and transmission components, chassis applications, clutch systems and related machine-building activities.
With rising capacity utilisation, higher localisation and renewed capital investments, the company is positioning itself for steady growth while navigating a moderating global export environment.