Rolex Rings sees FY28 monthly order book rise 5%-7% on ramps

In fiscal year (FY) 2028, Rolex Rings expects its Rs 120 crore-Rs 125 crore monthly order book to increase by at least 5%-7%, driven by ramp-ups in automotive-component programs and potential domestic business for larger wind and industrial bearing rings that is still undergoing development and testing.

What is Rolex Rings’ FY28 monthly order-book outlook?

Rolex Rings expects its Rs 120 crore-Rs 125 crore monthly order book to rise by at least 5%-7% in fiscal 2028. Management said the current order book covers the next few months and referred to Rs 125 crore as the monthly level from which it envisages an increase, while characterising the outlook as dependent on programs moving into higher volumes.

The forecast is not a confirmation that the higher level is already booked. Management said the larger windmill and industrial-bearing opportunities require development and testing, while automotive-component programs that have already been developed are expected to ramp up in fiscal 2028. It identified the larger-bearing inquiries as originating only from the domestic market.

What will drive the expected FY28 order-book increase?

Automotive components are the principal disclosed driver of the fiscal 2028 order-book increase. Management said programs started in the previous fiscal year, together with a couple of programs yet to begin, should reach peak ramp-up in fiscal 2028 and fiscal 2029. It also said the auto-component segment could grow by at least 20%-22% year on year.

Management expects fiscal 2027 auto-component revenue to exceed Rs 550 crore-Rs 575 crore, compared with about Rs 505 crore in the previous fiscal year. Auto-component revenue was about Rs 318 crore in the first half of fiscal 2027, and management said the fiscal 2027 target did not include the Allison Dana opportunity discussed on the call.

Larger bearing rings used in wind and industrial equipment are a separate prospective contributor. Management said those rings carry better margins than traditional rings, but it did not disclose a contract value or production start date. One domestic customer has diversified into industrial bearings, and Rolex Rings said it had submitted samples for that business and was positive about the opportunity.

How is the current run rate translating into fiscal 2027 revenue?

Rolex Rings said the Rs 120 crore-Rs 125 crore monthly order-book run rate was visible in October 2026 and that it expected about Rs 120 crore of monthly product revenue through the second half of fiscal 2027. Management confirmed that the figure excludes scrap and export-related items, separating the product-revenue run rate from other reported revenue items.

The second-half expectation compares with roughly Rs 110 crore of monthly product revenue in the first half, as described by an analyst during the call. Management did not give quarterly product-revenue guidance, but said the fourth quarter of fiscal 2027 should be better than the third quarter because certain customer programs are due to start at the end of the third quarter and the beginning of the fourth.

Domestic bearing-ring revenue also increased sequentially in fiscal 2027. Revenue rose to Rs 115 crore in the second quarter from Rs 86 crore in the first quarter, while management said domestic bearing-ring revenue grew about 10% in the first half from the prior-year first half despite a reduction in business from one customer group.

Which segments and geographies support the outlook?

Europe and India are supporting the program pipeline, according to management. Rolex Rings said Europe had recovered to about 23%-24% of overall business after being a concern before fiscal 2026, and that most newly won orders and started programs were from Europe. Those European programs are now ramping up, while the company continues to pursue automotive-component inquiries in the region.

Management said export auto components are growing faster than export bearing rings because it is expanding into products with more value-added processes and larger volumes. It cited an existing customer with plants across the United States, Europe, Mexico and Canada, where further plants had been brought into its supply system. By comparison, management described European industrial bearing-ring demand as lower than auto-component demand.

In India, existing bearing customers are increasing their share of purchases in automotive bearing rings, management said. The move from Rs 86 crore of domestic bearing-ring revenue in the first quarter to Rs 115 crore in the second quarter was cited as evidence of broader customer growth, even as one customer group reduced its business with Rolex Rings.

What could affect delivery of the FY28 plan?

Completion of development and testing is the immediate constraint on the wind and industrial-bearing opportunity. Management said these larger components would need a good amount of time before production, and indicated that better numbers from bearing-ring and industrial opportunities were expected in fiscal 2028 rather than the current fiscal year.

Capacity utilisation is another execution measure. Rolex Rings said utilisation was 65% and expected it to reach 70%-72% by the end of the fiscal year within annual capital expenditure of Rs 30 crore-Rs 40 crore. Management said its forging and machining facilities are fungible between bearing rings and auto components, allowing capacity to be directed to programs based on volume, tenure and margin.

Management’s broader growth outlook also contains external conditions. It said fiscal 2028 revenue growth could move towards the high teens as new programs reach full volumes, and that fiscal 2029 growth above 22%-23% could be possible if the existing trend continues without geopolitical or overseas economic disruptions. These are management expectations rather than reported results.

Conclusion

Rolex Rings’ fiscal 2028 order-book outlook combines a current Rs 120 crore-Rs 125 crore monthly run rate with planned automotive-program ramps and early-stage domestic inquiries for larger bearing rings. The sequential rise in domestic bearing-ring revenue to Rs 115 crore in the second quarter from Rs 86 crore in the first provides a reported indication of improved current demand, while automotive programs are expected to supply the larger future contribution.

The next disclosed milestones are program starts at the end of the third quarter and beginning of the fourth quarter of fiscal 2027, progress in testing wind and industrial bearing rings, and capacity utilisation moving from 65% towards 70%-72% by fiscal year-end. Management also expects new programs to reach full volumes in fiscal 2028.