Rolex Rings (ROLEXRINGS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 was the strongest quarter to date; revenue from operations rose 43.4% YoY to ₹3,891.83 million, with EBITDA up 72.0% to ₹94 crore.

• H1 FY27 revenue increased 23.2% YoY to ₹6,935.20 million; EBITDA rose 40.0% to ₹163 crore and net profit to ₹1,340.78 million.

• H2 is expected to exceed H1 as new customer plants start supplies and programs ramp.

Financial highlights

• Q2 net profit was ₹739.38 million versus ₹443.38 million YoY; reported results included a ₹180.34 million U.S. tariff refund.

• Q2 gross profit was ₹233 crore; EBIT was ₹100 crore and PBT was ₹100 crore.

• H1 gross profit was ₹402 crore; EBITDA was ₹163 crore, EBIT ₹180 crore and PBT ₹179 crore.

• H1 operating cash flow was ₹704.87 million; closing cash and cash equivalents were ₹729.80 million.

Outlook and guidance

• H2 FY27 order book averages ₹120 crore–₹125 crore per month; Q4 is expected to exceed Q3 as new programs begin.

• FY27 revenue growth guidance was reiterated; auto components are expected at ₹575 crore–₹600 crore and bearing rings at 8%–10% growth.

• FY28 growth is expected in the high teens, with EBITDA margin 50–75 bps above FY27; auto-component growth of 20%–22% was indicated.

• Utilization was 65% for H1 and 67%–68% in recent months; target is 70%–72% by FY27 end, with annual CapEx of ₹30 crore–₹40 crore.