Rolex Rings (ROLEXRINGS) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue declined due to U.S. tariff hikes and export slowdowns, but domestic and European markets showed resilience and growth, especially in bearing rings.

• U.S. import duties on Indian goods rose to 53% in Q2, with a 25% customs duty waiver effective November 2025 and further reductions possible pending a trade deal.

• Management expects U.S. business to recover from December 2025, with strong growth anticipated in FY27 and FY28 as new orders ramp up.

• Standalone unaudited financial results for the quarter and half year ended September 30, 2025, were approved and released.

• A 9MW solar plant is expected to be operational by December 2025, supporting sustainability initiatives.

Financial highlights

• Q2 FY26 revenue from operations was ₹2,713.83 million (INR 272 crores), down 7% sequentially and 9% year-over-year.

• EBITDA for Q2 was ₹680 million (INR 69 crores), margin at 25.1%-26%.

• PAT for Q2 was ₹443.38 million (INR 44 crores), down 10% sequentially and 9.9% year-over-year.

• H1 FY26 revenue was ₹5,630 million (INR 563 crores); operating cash flow for six months was ₹1,123 million (INR 87 crores).

• EPS for Q2 FY26 stood at ₹1.73, compared to ₹1.81 in Q2 FY25.

Outlook and guidance

• FY26 is expected to be flat or show marginal growth due to nine months of U.S. export disruption; strong growth is expected in FY27 and FY28 as new programs and orders commence.

• Domestic demand, especially in bearing rings, is improving, while European business shows sequential growth.

• Management remains bullish on regaining U.S. market share and expects incremental revenue from December 2025 onward.

• Anticipated cost savings and sustainability benefits from the upcoming solar plant.

• Management continues discussions with banks regarding a significant demand notice and provisioned ₹506 million for potential liability.