Rolex Rings (ROLEXRINGS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was ₹2,916 million, up from ₹2,839 million in Q4 FY25 but down from ₹3,108 million in Q1 FY25.

• EBITDA for Q1 FY26 was ₹772 million with a margin of 26.5%, showing improvement from previous quarters due to gross margin gains and forex appreciation.

• PAT for Q1 FY26 stood at ₹492 million, a slight decrease year-over-year and sequentially.

• Domestic market share increased to 53% of revenue, with exports at 47%; domestic business remains strong while overseas demand, especially in the US, is subdued.

• Auto components contributed 54% of revenue, bearing rings 54%, with Europe’s revenue share rising to 20% in the first four months.

Financial highlights

• Q1 FY26 EBITDA margin was 26.5% (including other income), compared to 23% average in FY23–FY25.

• Profit before tax for Q1 FY26 was ₹680 million; PAT was ₹492 million.

• Cash flows averaged ₹2,250 million annually over the last three years.

• Net debt is negative or very low, with surplus funds in investments and FDs; net debt to equity reduced to 0.06 in FY25.

• Return on equity has been 16%-17% in recent years.

Outlook and guidance

• FY26 revenue growth now expected in the early teens due to US tariff uncertainty, down from earlier 14%-16% guidance.

• EBITDA margin (excluding other income) expected at 21%-22%, similar to last year.

• Overseas demand, especially for bearing rings, remains subdued; US market expected to stay weak, while Europe shows signs of improvement.

• Management expects to pass on potential tariff increases to customers in the short term, with some impact on future export revenue and profitability.

• Second half of the year typically stronger, with 55%-60% of annual revenue.