Rolex Rings (ROLEXRINGS) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 9% sequentially to INR 284 crore, with EBITDA rising to INR 62 crore and PAT at INR 55 crore, reflecting a rebound due to absence of extraordinary provisions.

• FY25 revenue was INR 1,154 crore (₹11,548 mn), with exports at INR 553 crore and domestic at INR 601 crore; net profit after tax for FY25 was ₹1,739.97 million, up from ₹1,560.38 million in FY24.

• EBITDA margin for Q4 FY25 was 21.2%, lower than Q4 FY24, mainly due to subdued demand and lower revenues.

• Auto components now contribute 55% of component revenue, overtaking bearing rings at 45%.

• Standalone audited financial results for FY25 were approved, showing continued profitability and operational stability.

Financial highlights

• Q4 FY25 revenue: INR 284 crore (up from INR 260 crore in Q3 FY25, but down from INR 316 crore in Q4 FY24); FY25 revenue: ₹11,548.02 million.

• Q4 FY25 EBITDA: INR 62 crore; FY25 EBITDA: INR 269 crore (23% margin); FY25 EBITDA margin stood at 23.0%, slightly below 23.4% in FY24.

• FY25 PAT: INR 174 crore (₹1,740 mn), up from ₹1,560 mn in FY24.

• Net debt to equity improved to (0.05) in FY25 from 0.06 in FY24, indicating a net cash position.

• Cash and cash equivalents increased to ₹488.81 million at year-end.

Outlook and guidance

• Q1 FY26 expected growth of 2%-5%, with stronger growth anticipated from Q2 FY26 due to new orders and dispatch plans.

• FY26 revenue growth guidance at 15%, with similar or higher growth expected in FY27; EBITDA margin guidance: 23.5%-24% for FY26, above 24% for FY27.

• Management expects recovery in the next six months, with US tariffs and global growth as key factors to monitor.

• Full recovery in bearing rings segment expected in 6-8 quarters, with gradual improvement starting Q3 FY26.

• Management continues to negotiate with consortium banks regarding a significant demand notice, with legal opinions supporting the company's position.