Wheels India (WHEELS) Q2 25/26 earnings summary

Executive summary

• Q2 consolidated revenue from operations rose to ₹1,263.97 crore from ₹1,176.47 crore YoY; net profit increased to ₹31.78 crore from ₹24.44 crore.

• H1 consolidated revenue was ₹2,529.47 crore and net profit was ₹62.37 crore, up from ₹2,342.35 crore and ₹48.17 crore, respectively.

Financial highlights

• Q2 standalone revenue from operations was ₹1,173.02 crore versus ₹1,083.89 crore; net profit was ₹27.77 crore versus ₹21.92 crore YoY.

• Q2 EBITDA was ₹90.11 crore, up 16.2% YoY, with a 7.64% margin versus 7.15%; PBT rose 26.8% to ₹37.22 crore.

• H1 EBITDA was ₹179.27 crore, up 14.2% YoY, with a 7.58% margin versus 7.22%; PBT rose 17.3% to ₹73.05 crore.

• Q2 exports were ₹298.74 crore, 25.34% of sales; H1 exports were ₹622.40 crore, 26.31% of sales.

Outlook and guidance

• H2 is expected to at least match H1 performance barring adverse developments; export demand is expected to remain broadly steady.

• Management expects 8%-10% growth, supported by domestic demand and higher export volumes; the two-year growth outlook remains conditional on external factors.

• Priorities include expanding wheel exports, windmill machining and fabricated structures, hydraulic cylinders and cast aluminium wheels, while optimizing working capital and costs.

• FY26 CapEx of ₹250 crore is expected to be completed by year-end; related revenue contribution is estimated at ₹500-600 crore as investments ramp up over time.

• ROE of 15% is a two-year target; management is targeting margins closer to double digits as growth investments mature.