Rolex Rings Q2 FY27 Revenue Surges 43% to ₹389 Cr; PAT Up 68%
Rolex Rings reported Q2 FY27 revenue of ₹389 Cr, up 43% YoY, including ₹18 Cr duty refund. PAT grew 68% to ₹74 Cr. Auto components revenue increased 68% YoY to ₹177 Cr. Exports rose 55% to ₹167 Cr. The company expects H2 FY27 to be stronger than H1 and projects FY28 growth towards high teens.
The announcement details robust financial performance with significant growth across key metrics, including revenue and profitability. The positive outlook and strategic initiatives for future growth indicate a material impact on the company's prospects.
The company reported strong financial results with significant year-on-year growth in revenue, EBITDA, and PAT. Positive outlook for future quarters and expansion into new sectors also contribute to the positive sentiment.
Rolex Rings Limited reported its strongest quarter to date for Q2 FY27, with revenue from operations reaching ₹389 crore, a significant increase of 43% year-on-year and 28% quarter-on-quarter. This performance includes a one-time benefit of approximately ₹18 crore from a customs duty refund related to U.S. tariffs.
Excluding this one-time benefit, overall revenue grew by 32% year-on-year. The company's component sales, comprising both rings and auto components, grew by 32% year-on-year to ₹330 crore. Revenue from auto components saw a substantial rise of 68% year-on-year to ₹177 crore, now contributing 54% of total sales, up from 42% in Q2 FY26. Bearing rings revenue grew by 6% to ₹153 crore.
Exports surged by 55% year-on-year to ₹167 crore, accounting for 51% of component sales. Within auto components, exports grew by 89% to ₹129 crore, while domestic auto components grew by 29% to ₹48 crore. The U.S. market was a standout performer, with component revenue more than doubling year-on-year to ₹92 crore.
Gross margin for the quarter sharply increased by approximately 700 basis points year-on-year, driven by a richer product mix, raw material management, and the duty refund. EBITDA grew by 72% year-on-year to ₹94 crore, with an EBITDA margin of 24.2%, up by 400 basis points. Profit after tax (PAT) grew by 68% to ₹74 crore, with a PAT margin of 19.1%, up 280 basis points.
Excluding the refund, the EBITDA margin would be around 21%. The company is actively discussing freight burden sharing with customers, particularly in the U.S., and expects ocean freight rates to decline from October 2026, guiding operating margins back into the 21%-22% range.
For the first half of FY27 (H1 FY27), revenue grew by 23% year-on-year to ₹694 crore. EBITDA grew by 40% to ₹163 crore, and PAT grew by 44% to ₹134 crore. The company remains debt-free and held approximately ₹260 crore in cash and liquid investments after completing a ₹180 crore buyback.
Looking ahead, Rolex Rings expects H2 FY27 to be stronger than H1, driven by new programs scaling up, capacity utilization increasing towards 70%-72%, and expanding customer associations in Europe and India. The company is also exploring defense and aerospace sectors for medium-term growth and potential inorganic opportunities to add value-added processes. FY28 growth is projected towards high teens, with an expected EBITDA margin increase of 50-75 basis points.
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