Wheels India’s Consolidated Profit Up by 28.9% in June Quarter

Mumbai, 5 August 2025: Wheels India Limited has reported a 28.9% year-on-year (YoY) rise in its consolidated net profit to ₹30.59 crore for the quarter ended 30 June 2025 (Q1FY26), up from ₹23.74 crore in the corresponding quarter last year. The performance was driven by healthy demand in the automotive components segment and a balanced cost structure. However, despite the upbeat earnings, the company’s shares slipped over 2% in intraday trade.

Revenue from Operations Grows 8.5% YoY to ₹1,265.50 Cr, Driven by Automotive Segment

Wheels India reported a consolidated revenue from operations of ₹1,265.50 crore in Q1FY26, reflecting an 8.5% YoY growth compared to ₹1,165.88 crore in Q1FY25. On a quarter-on-quarter (QoQ) basis, however, revenue was slightly lower than the ₹1,277.19 crore reported in Q4FY25.

The company’s automotive components segment remained the key revenue driver, generating ₹1,077.32 crore, up from ₹974.41 crore in Q1FY25 – a growth of 10.5% YoY. Meanwhile, the industrial components segment posted revenue of ₹188.18 crore, which was marginally lower compared to ₹191.47 crore last year and down from ₹231.42 crore in Q4FY25.

Profit Before Tax Climbs 30.2% YoY to ₹40.96 Cr Despite Sequential Decline

Wheels India’s profit before tax (PBT) rose to ₹40.96 crore in Q1FY26, registering a 30.2% YoY increase from ₹31.47 crore in the same quarter last year. Sequentially, however, PBT dropped from ₹51.56 crore reported in Q4FY25.

The company’s net profit also saw a substantial YoY increase of 28.9% to ₹30.59 crore, although it fell from ₹38.54 crore in the previous quarter. Earnings per share (EPS) for Q1FY26 stood at ₹12.23, up from ₹9.66 in Q1FY25 but down from ₹15.77 in Q4FY25.

Key Operating Metrics Reflect Positive Trends in Cost and Segment Performance

Wheels India’s key performance metrics show mixed signals. The company’s P/E ratio of 16.2 and price-to-book of 2.1, both below industry medians, suggest attractive valuation. A PEG ratio of 0.2 indicates undervaluation relative to growth. While TTM net profit growth of 76.5% ranks among the sector’s highest, quarterly net profit YoY was -0.7%, and revenue growth YoY at 0.4% trails peers. Operating profit margins were 8.1% (quarterly) and 7.4% (TTM). ROE of 12% and ROA of 3.5% highlight room for improvement. A Piotroski Score of 7 and rising institutional holdings at 12.22% reflect financial strength.

Stock Declines 2.30% to ₹735.40 as Investors Book Profits Despite Healthy Earnings

Despite the earnings beat, Wheels India’s share price closed lower at ₹735.40, down ₹17.35 or 2.30% on the NSE by 3:26 PM IST on 5 August 2025. The stock opened at ₹759.00 and touched an intraday high of ₹795.05 before slipping to a low of ₹732.00.

Market participants likely opted for profit booking, considering the stock’s recent rally. As of now, the stock trades significantly below its 52-week high of ₹907.00, though it remains well above the 52-week low of ₹543.60. The current price-to-earnings (P/E) ratio stands at 16.20, and the dividend yield is 1.57%.

Wheels India Revenue from Automotive Components Rises Over ₹1,077 Cr in Q1FY26

The automotive components division reported revenue of ₹1,077.32 crore in Q1FY26, compared to ₹974.41 crore in Q1FY25. This segment contributed the majority share to overall revenues, supporting Wheels India’s top-line growth. The company saw continued momentum in demand across commercial vehicles, tractors, and passenger car segments in both domestic and export markets.

In contrast, the industrial components segment contributed ₹188.18 crore in the quarter, lower than ₹231.42 crore in Q4FY25 and ₹191.47 crore in Q1FY25, reflecting muted demand in the infrastructure and construction-related markets.

Wheels India’s Management Optimistic on Demand Momentum and Margin Sustainability

Srivats Ram, Managing Director, stated, “We have seen continued demand momentum in our automotive segments and cost efficiencies aiding margin improvement. The domestic market held up well, and our export performance remained resilient.”

The management remains confident about future growth, supported by sustained demand, operational efficiency, and expansion opportunities in both domestic and global markets.

About Wheels India Limited: Major Steel Wheel Manufacturer with Global Presence Across Segments

Wheels India Limited, headquartered in Chennai, is among India’s largest manufacturers of steel wheels. The company supplies wheels to commercial vehicles, agricultural tractors, passenger cars, and construction equipment manufacturers. It operates through two primary business segments: automotive and industrial components.

The company is listed on NSE (Symbol: WHEELS) and BSE (Scrip Code: 590073). It has a significant presence in both domestic and international markets, with diversified customer bases and a strong legacy in the manufacturing space.

REF: https://nsearchives.nseindia.com/corporate/WHEELS_05082025133615_WILREG30outcome05082025.pdf

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