Wheels India automotive EBIT drives profit growth in Q2

Wheels India Limited’s Q2 FY27 earnings improvement came chiefly from automotive components, where earnings before interest and tax (EBIT) rose 70% year on year to Rs 102.80 crore. Industrial components increased revenue by 14% to Rs 265 crore, but its EBIT declined 34% to Rs 7.34 crore, limiting its contribution to operating profit.

What drove Wheels India’s Q2 FY27 EBIT growth?

Wheels India’s Q2 FY27 EBIT from operations rose 53% to Rs 110.14 crore from Rs 71.79 crore in Q2 FY26, led by automotive components. Automotive EBIT increased by Rs 42.18 crore, from Rs 60.62 crore to Rs 102.80 crore, exceeding the group-wide EBIT increase of Rs 38.35 crore because industrial-components EBIT declined.

Industrial-components EBIT fell by Rs 3.83 crore to Rs 7.34 crore in Q2 FY27 from Rs 11.17 crore a year earlier. Automotive components therefore supplied Rs 102.80 crore of the reported Rs 110.14 crore EBIT from operations, while industrial components supplied Rs 7.34 crore. The presentation does not provide segment-level pricing, volume, cost or margin details to explain the industrial decline.

How did Wheels India’s segment revenue change in Q2 FY27?

Wheels India’s revenue from operations increased 35% to Rs 1,711 crore in Q2 FY27 from Rs 1,264 crore in Q2 FY26. Automotive-components revenue rose 40% to Rs 1,446 crore, an increase of Rs 414 crore, while industrial-components revenue rose 14% to Rs 265 crore, an increase of Rs 33 crore.

Automotive components accounted for the larger part of the Q2 FY27 revenue increase. Its Rs 1,446 crore revenue was about 85% of total segment revenue from operations of Rs 1,711 crore, compared with about 82% of Rs 1,264 crore in Q2 FY26. Industrial components remained the smaller reported segment, with Rs 265 crore of revenue despite its lower EBIT.

What does Wheels India’s H1 FY27 segment performance show?

Wheels India reported automotive-components EBIT of Rs 178.41 crore in H1 FY27, up 37% from Rs 130.14 crore in H1 FY26. Industrial-components EBIT increased 13% to Rs 15.10 crore from Rs 13.35 crore, showing that the Q2 FY27 industrial decline did not remove the segment’s first-half year-on-year increase.

The scale of the first-half earnings increase remained concentrated in automotive components. Automotive EBIT rose by Rs 48.27 crore in H1 FY27, compared with a Rs 1.75 crore increase in industrial EBIT, while total EBIT from operations rose 35% to Rs 193.50 crore from Rs 143.49 crore. The H1 FY27 presentation labels both EBIT comparison columns as H1 FY26, although the reported figures and percentage changes indicate a year-on-year comparison.

Revenue rose in both segments during H1 FY27. Automotive-components revenue increased 28% to Rs 2,700 crore from Rs 2,109 crore, while industrial-components revenue grew 19% to Rs 502 crore from Rs 420 crore. Total revenue from operations increased 27% to Rs 3,202 crore from Rs 2,529 crore, a slower rate than the 35% increase in EBIT from operations.

How did Wheels India’s consolidated earnings and FY27 plans compare?

Wheels India’s consolidated profit before tax rose 87.9% to Rs 79.31 crore in Q2 FY27 from Rs 42.21 crore in Q2 FY26, while profit after tax rose 89.8% to Rs 60.16 crore from Rs 31.69 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 45.0% to Rs 143.98 crore, and the EBITDA margin rose to 8.36% from 7.83%.

Interest increased 4.2% to Rs 30.83 crore and depreciation rose 23.1% to Rs 33.84 crore in Q2 FY27. The presentation separately reports consolidated gross revenue of Rs 1,772.96 crore, compared with segment revenue from operations of Rs 1,711 crore, without providing a reconciliation on the supplied pages.

Management estimates FY27 capital expenditure of Rs 400 crore to Rs 450 crore, compared with Rs 261.84 crore in FY26. The planned spending covers capacity expansion in auto steel wheels, cast alloy wheels, energy products including large machining, hydraulic cylinders, construction and mining wheels, and air suspension.

Consolidated debt was Rs 693 crore at 30 September 2026, compared with Rs 727 crore a year earlier and Rs 690 crore at 31 March 2026. Debt to EBITDA was 1.33 times at 30 September 2026, versus 1.84 times a year earlier, while standalone free cash flow was negative Rs 123.66 crore in Q2 FY27 because of higher working capital and capital expenditure.

Conclusion

Wheels India’s Q2 FY27 segment earnings growth was driven by automotive components, whose Rs 102.80 crore EBIT represented most of the Rs 110.14 crore operating EBIT total. Industrial components expanded revenue to Rs 265 crore but recorded lower quarterly EBIT of Rs 7.34 crore, making automotive performance the principal source of the reported improvement.

The next disclosures should indicate whether industrial-components EBIT recovers after its Q2 FY27 decline and whether automotive components maintains the H1 FY27 EBIT level of Rs 178.41 crore. Management’s stated Rs 400 crore to Rs 450 crore FY27 capital-expenditure plan, alongside consolidated debt of Rs 693 crore at 30 September 2026, remains the disclosed operational and funding position to watch.