Wendt India is a leading manufacturer of Super Abrasives, Machining Tools, and Precision Components. It is a preferred supplier for many of the automobile, auto component, engineering, aerospace, defense ceramics customers for their Super Abrasive Tooling solutions, Grinding & Honing Machines, and Precision components. Presenting below are its Q2 FY26 earnings results.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹56.6 crore, up 1.6% YoY from ₹55.66 crore and 8.4% QoQ from ₹52.17 crore, reflecting modest topline improvement amid global headwinds.
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Total Income: ₹57.88 crore vs ₹58.44 crore YoY, largely stable.
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Operating Profit (EBITDA): ₹6.7 crore, down 63% YoY from ₹18.07 crore, leading to an operating margin of 11.8% versus 22.8% in Q2 FY25, lowest in the last twelve quarters.
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Profit After Tax (PAT): ₹2.7 crore, down 74.7% YoY from ₹10.69 crore, and down 28.5% QoQ from ₹3.78 crore in Q1 FY26, indicating sharp profitability contraction.
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PAT Margin: 4.8%, down 1,442 bps YoY from 19.2%, showing severe margin erosion.
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Standalone Performance: ₹49.86 crore revenue; ₹4.55 crore PAT (down 57% YoY).
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Consolidated EPS: ₹13.47 vs ₹53.45 YoY.
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Employee Costs: Up 24.3% YoY, outpacing revenue growth and compressing profitability.
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Exports: Declined 5% YoY, with weaker demand from Indonesia, the UK, and Eastern Europe amid geopolitical disruptions.
Management Commentary & Strategic Insights
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Wendt India attributed the weak performance to a lower margin mix of products, lower export off-take, and continued input inflation.
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CEO’s commentary (media call excerpt):
“Our profitability was impacted due to declining machine tool demand globally and a higher amortization cost for the Wendt brand. Operational expansion and restructuring of product lines are underway to mitigate short-term margin pressures.”. -
The management retained focus on R&D-driven abrasives and super precision segment growth, with new customer engagement pipelines in aerospace and automotive machining.
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Cost-Control Efforts:
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Working on supply chain rationalization and automation to drive cost recovery.
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Planning efficiency initiatives across Coimbatore and Hosur plants to enhance throughput and improve EBITDA from Q3 FY26 onward.
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Balance Sheet: The company remained debt-free, with consolidated cash and equivalents of ₹19.34 crore as of Sept 30, 2025.
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Outlook: Management expects gradual revenue recovery in H2 FY26 supported by export rebound and normalization in industrial abrasives demand.
Q1 FY26 Earnings Results
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Revenue: ₹52.17 crore, down 31% QoQ from Q4 FY25’s ₹75.6 crore, indicating seasonal weakness post high base.
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EBITDA: ₹7.3 crore; margin 13.9%.
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PAT: ₹3.78 crore, down 51% YoY and 71% QoQ.
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EPS: ₹18.93 vs ₹53.45 in Q4 FY25.
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Highlights: Stable domestic sales of ₹38.8 crore offset export softness. Management initiated cost-control actions post Q1 decline
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.