Wheels India plans Rs 400-450 crore FY27 capex while holding debt

Wheels India Limited plans capital expenditure of Rs 400 crore to Rs 450 crore in FY27, up from Rs 261.84 crore in FY26. Wheels India says it will fund the programme predominantly through accruals while holding debt at current levels, although standalone free cash flow was negative Rs 123.66 crore in Q2 FY27 because of working capital and capex.

How much will Wheels India spend on FY27 capex?

Wheels India estimates FY27 capex of Rs 400 crore to Rs 450 crore, which is Rs 138.16 crore to Rs 188.16 crore above the Rs 261.84 crore recorded in FY26. The presentation gives a range rather than a single approved spending figure, so it does not specify the final capex amount or timing within FY27.

The FY27 range is above each of the five annual capex amounts disclosed from 2021-22 through 2025-26. Spending moved from Rs 129.63 crore in 2021-22 to Rs 148.13 crore in 2022-23, fell to Rs 141.53 crore in 2023-24, and then rose to Rs 249.03 crore in 2024-25 and Rs 261.84 crore in 2025-26.

At the midpoint of the disclosed range, Rs 425 crore, FY27 capex would be Rs 163.16 crore higher than FY26. That midpoint is a calculation from Wheels India’s range, not management guidance for an exact outlay.

Where will Wheels India deploy its FY27 capex?

Wheels India says the FY27 programme will expand capacity for auto steel wheels, cast alloy wheels, energy products including large machining, hydraulic cylinders, construction and mining wheels, and air suspension. The company does not disclose a rupee allocation among these projects within the Rs 400 crore to Rs 450 crore range.

The energy-products programme includes the ramp-up of an expanded facility that machines large castings for windmills. Wheels India also plans to increase capacity and volumes for fabricated structural parts for windmills, while separately identifying exports of wheels for construction equipment and agricultural tractors as growth priorities.

Cast aluminium wheels, hydraulic cylinders and bus air suspension are also among the stated focus businesses. In H1 FY27, automotive-components revenue was Rs 2,700 crore, compared with Rs 502 crore for industrial components, showing the automotive segment was the larger disclosed revenue contributor while the investment programme spans both segments.

How does Wheels India plan to fund capex and manage debt?

Wheels India says it plans to fund capex predominantly through accruals and hold debt at current levels. Management also lists working-capital optimisation, cash-flow management and cost optimisation with a thrust on profitability as actions supporting its plan.

Standalone debt was Rs 681.23 crore in Q2 FY27, compared with Rs 674.88 crore at the end of FY26. Wheels India says Q2 FY27 debt was maintained at the Q1 FY27 level, which identifies the immediate-quarter balance as the reference point for its current-level debt plan.

Standalone free cash flow was negative Rs 123.66 crore in Q2 FY27, versus positive Rs 83.45 crore in FY26. Wheels India attributes the Q2 FY27 outflow to higher working capital and capex, making working-capital optimisation a stated part of the execution plan for an accrual-led funding approach.

What do Wheels India’s debt and return measures show?

Wheels India reported consolidated debt of Rs 693 crore at 30 September 2026, down from Rs 727 crore at 30 September 2025 but up from Rs 690 crore at 31 March 2026. Thus, debt was Rs 34 crore lower year on year and Rs 3 crore above the FY26 year-end level.

Consolidated debt to equity was 0.47 times at 30 September 2026, compared with 0.78 times a year earlier and 0.68 times at 31 March 2026. Consolidated debt to earnings before interest, tax, depreciation and amortisation, or EBITDA, was 1.33 times, versus 1.84 times and 1.55 times, respectively; the presentation annualises these measures.

On a standalone basis, debt to EBITDA was 1.43 times in Q2 FY27, compared with 1.68 times in FY26. Wheels India says the Q2 FY27 measure would be 1.91 times if discounting limits were included, while the FY26 comparable would be 2.89 times.

How are Wheels India’s operating segments performing?

Wheels India reported H1 FY27 consolidated gross revenue of Rs 3,215.75 crore, compared with Rs 2,537.14 crore in H1 FY26. EBITDA rose to Rs 260.25 crore from Rs 197.44 crore and profit after tax increased to Rs 99.11 crore from Rs 62.29 crore, while EBITDA margin increased to 8.09% from 7.78%.

Automotive-components revenue increased 28% to Rs 2,700 crore in H1 FY27, while industrial-components revenue rose 19% to Rs 502 crore. Automotive-components earnings before interest and tax, or EBIT, increased 37% to Rs 178.41 crore, compared with a 13% rise to Rs 15.10 crore for industrial components.

The Q2 FY27 mix showed a sharper divergence in segment profit growth. Automotive-components revenue rose 40% to Rs 1,446 crore and EBIT increased 70% to Rs 102.80 crore, whereas industrial-components revenue grew 14% to Rs 265 crore but EBIT declined 34% to Rs 7.34 crore.

Conclusion

Wheels India’s FY27 capex plan is materially above its Rs 261.84 crore FY26 outlay and covers automotive wheel capacity as well as windmill machining and structures, hydraulic cylinders, construction and mining wheels, and air suspension. Management links the programme to funding predominantly through accruals, working-capital and cash-flow management, and an intention to keep debt at current levels.

The next disclosed matters to watch are whether working-capital optimisation changes the negative Rs 123.66 crore standalone free cash flow reported in Q2 FY27, and whether debt remains near the Q1 FY27 level. Management also plans to ramp up large-casting machining for windmills, fabricated structural parts, cast aluminium wheels and bus air suspension, with the stated expectation that these actions will improve return on capital employed and return on net worth.