Wheels India Reports 88% Increase in Q2 FY27 Net Profit to ₹60 Crore

Chennai-based automotive component manufacturer Wheels India Ltd reported an 88 per cent increase in net profit to ₹60 crore for the second quarter ended September 30, 2026, compared to ₹32 crore in the same period of the previous fiscal year. Revenue for the quarter rose by 36 per cent to ₹1,723 crore, up from ₹1,268 crore previously.

On a standalone basis, net profit reached ₹53 crore against ₹28 crore, with revenue standing at ₹1,585 crore compared to ₹1,173 crore in the corresponding quarter last year.

Srivats Ram, Chairman and Managing Director of Wheels India, attributed the increased profitability to higher demand during the second quarter across profitable sectors. Export growth was significantly supported by the US market, where sales increased by roughly 50 per cent year-on-year, driven largely by demand for earthmover wheels. The company also benefited indirectly from a boom in US data centre construction that boosted demand for construction equipment.

Total exports grew to ₹388 crore in Q2, compared to ₹299 crore in the same quarter last year. The company witnessed strong sales growth in earthmover wheels, air suspension, and domestic Indian markets covering cars, trucks, and tractors.

During the quarter, Wheels India raised a total of ₹430 crore, comprising ₹180 crore through a preferential issue and ₹250 crore through a Qualified Institutional Placement (QIP). This fundraise, along with subsequent debt reduction, was completed by the end of September 2026.

Looking ahead to the second half of the fiscal year, management noted that inflation remains a concern. Growth is also expected to be affected by a higher base effect stemming from the GST 2.0 demand push that benefited the company in the second half of last year.

To address ongoing capacity constraints and production bottlenecks, Wheels India has accelerated its capital expenditure plans. The company's capex for the fiscal year is projected at ₹400 to ₹450 crore, significantly higher than its typical annual spending of around ₹250 crore over the past couple of years. Second-quarter capex exceeded ₹91 crore, bringing total expenditure for the first half of the year to approximately ₹145 crore.

"Wheels India's performance highlights the importance of strategic capital allocation and global market expansion. By successfully raising ₹430 crore to reduce debt while concurrently increasing capex to ease capacity bottlenecks, the company demonstrates sound financial management. Leveraging international demand, such as the US earthmover and construction equipment sectors, provides a buffer against domestic cyclic variations. However, managing inflationary pressures and navigating a tough base effect in the coming quarters will be critical for sustaining this growth momentum." — Dr. Shishir Gupta, Founder & CEO, StartupLanes