Rolex Rings Q1 FY26 Earnings Results

Rolex Rings is a leading manufacturer of forged and machined components in India and is one of the top 5 forging companies in India. The company is a Global supplier of hot rolled forged, machined bearing rings and automotive components for various segments of vehicles, Industrial Machinery, Wind Turbines and Railways. Presenting below are its Q1 FY26 earnings results.

 

Q1 FY26 Earnings Results

• Revenue from Operations: ₹291.60 crores, down 6.1% YoY from ₹310.80 crores in Q1 FY25, but up 2.7% QoQ from ₹284 crores in Q4 FY25.

• EBITDA: ₹77.20 crores, up 24.3% QoQ and slightly up YoY.

• EBITDA Margin: 26.5%, increased from 21.9% in Q4 FY25 and 24.6% in Q1 FY25, showing strong operational efficiency.

• Profit Before Tax (PBT): ₹68.00 crores, up 37.8% QoQ and 2.1% YoY.

• Profit After Tax (PAT): ₹49.20 crores, slightly down 10.9% QoQ due to higher tax expenses (₹18.8 crores in Q1 FY26 versus a tax credit of ₹5.3 crores in Q4 FY25).

• Segment Mix: 46% revenue from Bearing Rings, 54% from Auto Components.

• Market Division: 53% domestic revenue (up), 47% exports (down); European revenue contribution rose to 20%.

 

Management Commentary & Strategic Decisions

• Management noted subdued demand for bearing rings, especially in overseas markets like the US, impacted by tariff-related uncertainties.

• A strong domestic market and improving European demand are helping offset export challenges.

• The company maintains a healthy monthly order book of ₹110-120 crores, with ₹175 crores in new orders expected mostly from Q2 FY26 onward.

• About 25-30% of new US orders are currently on hold due to tariff uncertainties, but the management expects resolution within 1-2 months.

• Focus on operational efficiency led to margin expansion; a 2-3% margin gain came from one-time Euro forex appreciation.

• Management is shifting strategically towards BEV (Battery Electric Vehicle) and Hybrid vehicle segments, aiming to grow in these high-potential markets.

• The company has achieved a strong financial position with net cash of ₹53.9 crores by FY25, drastically reducing finance costs.

• Capital expenditure guidance for FY26 is moderate at ₹30-35 crores, emphasizing optimization before large expansions.

• Early-teen revenue growth is expected in FY26, with stronger growth anticipated in FY27.

 

 

Q4 FY25 Earnings Results

• Revenue from Operations: ₹283.90 crores, down 10 percent on the YoY basis

• EBITDA: ₹62.10 crores

• EBITDA Margin: 21.9%

• Profit After Tax (PAT): ₹55.21 crores (estimated based on reversal from tax adjustments), up by more than 130 percent on the YoY basis.

• The quarter reflected slightly lower profitability and revenue compared to Q1 FY26, impacted by seasonal and market factors.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.