Rolex Rings Q2 FY27 results: net profit up 66.8% to ₹73.94 crore, revenue up 43.4%

How did Rolex Rings perform in Q2 FY27?

Rolex Rings reported standalone revenue of ₹389.18 crore for Q2 FY27, up 43.4% from ₹271.38 crore in Q2 FY26 and 27.9% from ₹304.34 crore in Q1 FY27. EBITDA rose 72.0% year on year to ₹94.31 crore from ₹54.84 crore, while the EBITDA margin increased to 24.2% from 20.2% a year earlier and from 22.6% in the previous quarter.

Profit before tax was ₹99.63 crore, up 68.6% from ₹59.09 crore in Q2 FY26 and 25.7% from ₹79.28 crore in Q1 FY27. Net profit was ₹73.94 crore, against ₹44.34 crore a year earlier and ₹60.14 crore in the previous quarter; basic EPS was ₹2.78, up from ₹1.73 and ₹2.21 respectively. The investor presentation said the quarter included a one-time customs-duty refund of approximately ₹18 crore. The results were standalone; no consolidated figures were provided.

Total income was ₹404.36 crore, up 41.5% from ₹285.74 crore in Q2 FY26 and 24.7% from ₹324.17 crore in Q1 FY27. The company reported no exceptional item in either Q2 FY27 or the comparison periods.

What changed in Rolex Rings' costs and profit?

Total expenses rose 34.4% year on year to ₹304.72 crore from ₹226.65 crore. Cost of materials increased ₹44.63 crore, or 32.3%, to ₹182.96 crore; employee cost rose ₹2.04 crore, or 11.0%, to ₹20.66 crore; and other expenses increased ₹51.04 crore, or 76.6%, to ₹117.67 crore. Finance costs fell ₹0.08 crore, or 10.3%, to ₹0.70 crore, while depreciation declined ₹0.18 crore, or 1.9%, to ₹9.15 crore.

Other income increased ₹0.81 crore, or 5.6%, year on year to ₹15.17 crore, against ₹14.36 crore in Q2 FY26. Tax expense rose ₹10.94 crore, or 74.2%, to ₹25.69 crore from ₹14.75 crore. There was no exceptional item in the quarter. Management attributed the expense increase partly to nearly three-fold higher ocean freight, higher fuel costs and increased consumable costs following the escalation of the West Asia conflict.

Against Q1 FY27, total expenses rose ₹59.83 crore, or 24.4%, while other income fell ₹4.67 crore, or 23.5%. Cost of materials increased ₹38.83 crore and other expenses increased ₹36.68 crore; employee cost rose ₹1.05 crore, finance costs increased ₹0.47 crore, depreciation increased ₹0.11 crore and tax rose ₹6.55 crore. The filing did not state the reasons for all quarter-on-quarter movements.

How did the first half of FY27 go?

For H1 FY27, Rolex Rings reported revenue of ₹693.52 crore, up 23.2% from ₹562.97 crore in H1 FY26. Total income rose 22.9% to ₹728.53 crore from ₹592.93 crore, while profit before tax increased 40.8% to ₹178.92 crore from ₹127.09 crore.

H1 FY27 PAT was ₹134.08 crore, up 43.4% from ₹93.49 crore in H1 FY26, and EPS rose to ₹4.99 from ₹3.53. The investor presentation said the first-half results included a one-time customs-duty refund of approximately ₹21.7 crore, and management noted that working capital absorbed ₹73.8 Crs. during the first half.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,372.99 crore, against ₹1,371.15 crore at 31 March 2026. Total equity was ₹1,165.69 crore compared with ₹1,213.58 crore, while cash and cash equivalents were ₹72.98 crore against ₹69.31 crore. The company reported borrowings of ₹0.00 crore at both dates.

Inventories increased to ₹299.01 crore from ₹234.98 crore, trade receivables rose to ₹266.85 crore from ₹219.63 crore and trade payables rose to ₹129.10 crore from ₹92.05 crore. H1 FY27 operating cash flow was ₹70.69 crore, compared with ₹87.03 crore in H1 FY26; investing cash flow was ₹115.28 crore against an outflow of ₹43.46 crore, and financing cash flow was an outflow of ₹183.08 crore against an outflow of ₹14.99 crore.

Capital expenditure was ₹10.83 crore in H1 FY27, compared with ₹12.68 crore in H1 FY26. The presentation described the balance sheet as debt-free and said that a ₹180 crore buyback had been completed.

How has Rolex Rings done over the last 8 quarters?

The quarterly series shows Q2 FY27 at the highest revenue level in the period, at ₹389.18 crore, compared with the low of ₹259.88 crore in Q3 FY25. PAT also reached its highest listed level at ₹73.94 crore, after a low of a net loss of ₹0.15 crore in Q4 FY26; the EBITDA margin was also highest at 24.2% and lowest at 18.4%.

Revenue has risen year on year in each of the last four quarters, while profit has risen year on year in each of the last two quarters. After falling to ₹271.38 crore in Q2 FY26, revenue moved to ₹274.84 crore in Q3 FY26 and ₹305.69 crore in Q4 FY26, then rose to ₹304.34 crore in Q1 FY27 and ₹389.18 crore in Q2 FY27.

What else did the company announce?

The board approved the standalone unaudited financial results for the quarter and half year ended 30 September 2026, together with the auditors’ limited review report. The Audit Committee had reviewed and recommended the results before the board approved them. The same-day filing also included the statement of assets and liabilities and the cash flow statement.

The same-day investor communication stated that monthly order book was ₹120–125 crore. The presentation also referred to a completed ₹180 crore buyback and to a debt-free balance sheet; no separate dividend, fund raise or appointment was described in the same-day filings provided.

What did Rolex Rings' management say?

Management said, “We expect H2 FY27 to be stronger than H1.” It also said one to two new customer plants would begin supplies in Q3, as new programmes continued to ramp up. The company expected defence and aerospace revenue over the next 12 months after receiving registrations and initial approvals in those segments.

Management said automotive components led the quarter, growing 68% to ₹177 crore, while exports in the segment rose 89%. Auto components represented 54% of component sales, bearing-ring revenue grew 6% to ₹153 crore, and the order book averaged ₹120–125 crore per month. Capacity utilisation was 63–65%.

Management identified the one-time customs-duty refund of approximately ₹18 crore in Q2 and ₹21.7 crore in H1, meaning the reported revenue, gross profit, EBITDA and PAT growth were not fully recurring. It also flagged nearly three-fold higher ocean freight, higher fuel and consumable costs following the escalation of the West Asia conflict, and working-capital absorption of ₹73.8 Crs. The presentation stated that gross margin was shown on two unreconciled bases, 55% in the MD message and 59.8% in the KPI slide including the tariff refund.

Management’s priorities included advanced machining, design-to-manufacture capabilities, precision-engineered assemblies and geographic expansion into Asia-Pacific and the Middle East. The company expected to set up an additional 9MW solar plant by Mid-CY2026 and planned 60% renewable-energy consumption by 2030, subject to government policy and approvals; completion of the solar plant was not stated. The presentation’s safe-harbour section said actual results could differ materially because of economic conditions, competition, execution, technology changes, market preferences and other risks.

How did Rolex Rings shares react?

From the price when the filing appeared, Rolex Rings fell 1.4% after five minutes, fell 2.7% after 15 minutes and rose 1.4% after 30 minutes. The pre-results close was ₹168.83, and the reaction-day close was 11.4% higher. By the next day’s close, the stock was up 22.1% from that pre-results close; no five-day move was available.

On the reaction day, the stock’s 11.4% gain exceeded the Auto Components & Equipments industry median of 1.4% by 10.1 percentage points and the Nifty Microcap 250’s 2.2% gain by 9.2 percentage points. By the next day’s close, the stock was 19.6 percentage points above the industry median’s 2.5% gain. Earlier results-day moves ranged from a fall of 4.0% on 16 May 2026 to a rise of 2.8% on 9 February 2026.

How did other Auto Components & Equipments companies do?

Among 57 other Auto Components & Equipments companies that had filed for the quarter, the median revenue growth was 32.3%. Rolex Rings’ 43.4% revenue growth was higher than 11 peers and lower than 46 peers; the company itself was not included in those peer counts. The peer data as of 6 November 2026 covered revenue growth for 57 companies.

Of the 58 peer companies for which profit was compared, 45 reported higher profit. Rolex Rings was therefore among the companies in the group whose profit rose in the quarter, although the peer count does not indicate how many other companies reported lower profit.