Wheels India (WHEELS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated gross revenue rose 35.8% YoY to ₹1,722.96 crore; PAT increased 89.8% to ₹60.16 crore.

• Standalone Q2 gross revenue grew 35.5% to ₹1,597.60 crore and PAT rose 92.3% to ₹53.41 crore.

• Automotive components grew 40% in Q2, led by earthmover wheels, air suspension and strong domestic auto demand.

• H1 consolidated gross revenue increased 26.7% to ₹3,215.75 crore and PAT rose 59.1% to ₹99.11 crore; standalone revenue and PAT grew 26.1% and 66.9%.

• FY27 priorities include capacity expansion and scaling industrial products, with a target of double-digit EBITDA margins within two years.

Financial highlights

• Consolidated Q2 gross revenue was ₹1,722.96 crore versus revenue from operations of ₹1,710.95 crore; PAT was ₹60.16 crore.

• Standalone Q2 gross revenue was ₹1,597.60 crore versus revenue from operations of ₹1,585.03 crore; PAT was ₹53.41 crore.

• Consolidated H1 gross revenue was ₹3,215.75 crore versus revenue from operations of ₹3,201.95 crore; PAT was ₹99.11 crore.

• Standalone H1 gross revenue was ₹2,983.57 crore versus revenue from operations of ₹2,965.46 crore; PAT was ₹90.45 crore.

• Consolidated Q2 EBITDA rose 45.0% to ₹143.98 crore, with an 8.36% margin; PBT increased 87.9% to ₹79.31 crore.

Outlook and guidance

• FY27 capex is estimated at ₹400–450 crore for automotive wheels, energy products, hydraulic cylinders, construction and mining wheels, and air suspension.

• Strategic priorities include export growth in construction-equipment and tractor wheels, ramping large-casting machining and fabricated windmill parts, and expanding hydraulic cylinders, cast alloy wheels and bus air suspension.

• Cast aluminum wheel capacity is planned to rise from 80,000 to 130,000 units monthly by March; 100,000 monthly units and 10%–12% EBITDA margin are expected by Q1 next year.

• Double-digit EBITDA margin is targeted within two years; construction fabrication is expected to become profitable in Q3–Q4, with hydraulic cylinders scaling from Q4.

• H2 exports are expected to improve on H1, with stronger export-business ramp-up focus next year; customer schedules were described as strong.