Rolex Rings FY25 revenue slips; Q2 FY26 down 10% YoY

What changed for Rolex Rings

Rolex Rings Limited reported a softer revenue trend across FY25 and into FY26, reflecting weaker demand in bearing rings, especially in overseas markets. The company’s FY25 revenue from operations fell to ₹11,548 million from ₹12,218 million in FY24. Total revenues also declined, with FY25 total revenues at ₹11,833 million versus ₹12,368 million in FY24. Alongside the revenue pressure, the company flagged lower EBITDA margins in the period where demand was subdued.

Even as topline growth slowed, profitability at the full-year level remained supported by a lower effective tax rate, with FY25 profit after tax (PAT) at ₹1,740 million compared with ₹1,560 million in FY24. The company said it expects a recovery over the next six months, with US tariffs and global growth among key factors to monitor.

FY25 snapshot: operations revenue down, PAT up

The FY25 numbers show a clear divergence between operating performance and bottom-line outcome. Revenue from operations declined by 5.5% year-on-year to ₹11,548 million. Total revenues fell 4.3% to ₹11,833 million. Profit before tax (PBT) was broadly flat, easing to ₹2,077 million from ₹2,097 million.

PAT, however, increased to ₹1,740 million from ₹1,560 million. The reported effective tax rate dropped to 16.2% in FY25 from 25.6% in FY24, which helped lift net profit margin to 15.1% from 12.8%.

Q4 FY25: weaker revenue and margin compared with prior year

For Q4 FY25, revenue from operations was reported at ₹2,839 million (₹283.90 crore), down 10% year-on-year. EBITDA for the quarter was ₹621 million (₹62.10 crore), with an EBITDA margin of 21.9%. The company commentary linked margin pressure to lower revenues versus Q4 FY24, and cited subdued demand in bearing rings, particularly in overseas markets.

While some datasets also show quarterly standalone line items for Mar 2025 (Q4 FY25) with revenues at ₹284 crore and operating income at ₹52 crore, the broader takeaway remains consistent: topline was softer than the comparable period, and operating margin was lower than earlier peaks.

Q1 FY26: operating efficiency improves, one-off forex tailwind

In Q1 FY26, revenue from operations was reported at ₹2,916 million (₹291.60 crore), down 6.1% year-on-year from ₹3,108 million (₹310.80 crore) but up 2.7% quarter-on-quarter from ₹2,840 million (₹284 crore). EBITDA was reported at ₹772 million (₹77.20 crore), up 24.3% quarter-on-quarter, with EBITDA margin at 26.5%.

A separate Q1 FY26 summary also reported EBITDA at approximately ₹771 million with an EBITDA margin of 25.1%. The company commentary attributed part of the margin gain to operational efficiency, and indicated a 2-3% margin gain came from one-time euro forex appreciation.

Q2 FY26: revenue and profit decline, margins stable

For Q2 FY26, the company reported revenue from operations of ₹2,713.83 million, down 9.7% year-on-year and down 6.9% quarter-on-quarter. Total income was ₹2,857.41 million, down 7.7% year-on-year and 7.0% quarter-on-quarter. Operating profit before tax was ₹590.91 million, down 9.3% year-on-year and down 13.1% quarter-on-quarter.

Margins were described as stable, with operating profit margin at 20.7% and net profit margin at 15.5% in Q2 FY26. PAT came in at ₹443.38 million, down 10.0% year-on-year and down 9.8% quarter-on-quarter. EPS was ₹1.73, down 4.4% year-on-year and quarter-on-quarter.

Key financial table (FY24 vs FY25)

All figures are in ₹ million.

Quarterly trend table (Q4 FY25 to Q2 FY26)

All figures are in ₹ million unless stated.

Market context: tariffs and global growth are watchpoints

The company indicated it expects a recovery over the next six months, while highlighting US tariffs and global growth as key monitorables. The near-term demand environment it described was subdued for bearing rings, particularly in overseas markets. That matters for an auto-component supplier because export demand swings can quickly affect utilisation and operating leverage.

Investors also track how much of the recent margin movement is structural versus temporary. In Q1 FY26, the company commentary referenced a one-time benefit from euro forex appreciation that supported margins by 2-3%, implying that part of the uplift may not repeat.

Stock reference point

As per the provided data, Rolex Rings was trading at ₹132.0 per share at the time of the snapshot. With FY25 revenue lower than FY24 and quarterly revenues easing into Q2 FY26, the next set of updates on demand conditions and pricing will likely be read alongside the company’s stated six-month recovery expectation.

Conclusion

Rolex Rings entered FY26 after a softer FY25 revenue outcome driven by subdued overseas demand in bearing rings, even as FY25 PAT improved on a lower tax rate. Q1 FY26 showed margin expansion, while Q2 FY26 saw revenue and profit declines with margins holding steady. The company’s stated focus over the next six months remains tied to the demand recovery trajectory, with tariffs and global growth among the key variables it is monitoring.