Schaeffler India has reported a significant surge in its financial performance for the fourth quarter ended December 31, 2025. The company announced a 36% year-on-year increase in consolidated net profit, reaching 322 crore. This growth was complemented by a 28% rise in revenue from operations, which climbed to 2,724 crore compared to 2,136 crore in the same period last year. On a sequential basis, the company maintained its upward trajectory with an 11% increase in profit and a 12% rise in revenue over the preceding quarter. This operational strength led the Board of Directors to recommend a final dividend of 35 per share for the financial year 2025. This represents a payout ratio of 46%, up from the 28 per share dividend declared in the previous year. The market responded positively to these results during the February 24, 2026, trading session. Schaeffler India’s share price surged by over 11% to reach 4,084.80 on the National Stock Exchange. The stock hit an intraday high of 4,118, nearing its 52-week high of 4,392. The company's current market capitalization stands at approximately 63,857 crore. For the full year 2025, revenue increased by 16.3% to 9,395 crore, while net profit grew to 1,196 crore. Profit before tax margins improved to 17.2%, up from 16.3% in 2024. These gains were achieved despite a 0.8% margin impact caused by new labor code regulations. Management attributed the success to strong domestic demand and a robust intercompany exports business. The broader automotive sector in India is currently benefiting from a second-half recovery in the 2025-26 fiscal year. This recovery is driven by GST reforms, healthy rural demand, and increased financing availability. While wholesale volumes for passenger vehicles are expected to grow by 5-7% this fiscal, analysts project a normalization to 4-6% growth in the 2026-27 period. Within specific segments, the commercial vehicle market saw a 27% year-on-year jump in January 2026 volumes. The shift toward alternative powertrains, including electric vehicles and hybrids, continues to be a structural theme. Schaeffler remains well-positioned within this landscape, maintaining a nearly debt-free balance sheet and a strong Return on Capital Employed of 29.8%. Investors should note that the dividend payment is subject to shareholder approval at the Annual General Meeting scheduled for April 30, 2026. The stock currently offers a dividend yield of approximately 0.69% at current market prices. Final dividend disbursements are expected to be completed within 30 days of the approval.