Rolex Rings (ROLEXRINGS) Q4 25/26 earnings summary

Executive summary

• Successfully navigated FY26 with resilience, exiting CDR by settling all dues and Right of Recompense (RoR), leaving the company debt-free and net cash positive.

• Announced a buyback of up to 10 million shares at INR 180 per share, totaling INR 1,800 million, with promoters not participating.

• European revenues grew nearly 25% YoY, with over 60% of new business nominations from European OEMs.

• Domestic revenues increased, supported by new customer additions and robust demand.

• Standalone audited financial results for FY26 were approved, reflecting key financial events and performance.

Financial highlights

• FY26 revenue from operations was INR 1,144 crores (₹11,434.95 million), broadly flat YoY, with Q4 FY26 revenue at ₹3,056.92 million (+8% YoY).

• Gross margin improved to 51.5% in FY26 (from 49.4% in FY25).

• EBITDA margin remained above 20% despite export and tariff headwinds.

• FY26 adjusted PAT was INR 193 crores (₹1,410.98 million), with PAT margin at 16.9%.

• Operating cash flow was INR 190 crores (₹1,895.85 million), with CapEx at INR 36 crores and cash & cash equivalents at year-end of ₹693.06 million.

Outlook and guidance

• Expecting 15%-17% revenue growth in FY27, with high-teen growth anticipated for FY28.

• U.S. orders projected to recover from Q1 FY27 as tariffs normalize and new customer programs in Mexico and the U.S. ramp up.

• European growth momentum to continue, driven by new program wins and structural tailwinds.

• Domestic business remains robust, with incremental contributions from EV and industrial programs expected over the next 2-3 years.

• The company will evaluate further impact of new labour codes and related government clarifications in subsequent periods.