Wheels India delivered exceptional financial performance in the June 2026 quarter, with consolidated net profit rising 28% to ₹38.3 crore compared to ₹30 crore in the corresponding quarter of the previous year. However, shares declined over 5% on Tuesday despite the strong earnings, as investors assessed the company's earnings and outlook. The Chennai-based auto component manufacturer reported consolidated net profit at ₹38.3 crore for first quarter ended June 30, 2026, against ₹30 crore in the same quarter last year, as per the latest company statement. The stock was trading at ₹1,407.8 apiece on NSE after losing over 88 points from its previous close at ₹1,495.6.
The company's revenue from operations increased 17.8% year-on-year to ₹1,491 crore, compared with ₹1,266 crore in the corresponding period last year. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 19.1% to ₹112 crore from ₹94 crore a year ago, while the Ebitda margin expanded marginally to 7.5% from 7.4%. This operational improvement reflects better cost management and operational efficiency during the quarter, despite facing strong inflationary pressures on material costs due to the West Asia crisis.
Exports contributed significantly to Wheels India's financial success, witnessing a 17.3% growth to ₹380 crore in Q1 of FY27, up from ₹324 crore in the first quarter of the previous year. This robust export performance was primarily attributed to increased domestic market demand for cars, trucks, and agricultural tractors, alongside strong performance in export of construction equipment wheels. The company's diversified product portfolio across automotive and industrial components sectors has been key to this export-led growth. As per Managing Director Srivats Ram, strong growth in the export of construction equipment wheels was a significant contributor to the overall export performance.
Despite the recent share price decline, Wheels India stock has remained up over a year and rallied close to 84% during the period. Since the beginning of 2026, the stock has surged over 62.6% when the broader market was down by 8.2%. The stock is currently trading at a price-to-earnings multiple of 23.3 times, with a market cap of ₹3,437 crore as of the end of the last trading session. Looking ahead, Srivats Ram expressed optimism, expecting the growth momentum to continue into the second quarter of FY2027, citing continued strength in the domestic automobile market and robust export performance.
