Chennai: Wheels India, a leading manufacturer of auto parts, reported a strong performance in FY26, driven by robust demand across domestic automotive segments and resilient export growth, even as the company flagged inflationary pressures and uncertainty stemming from the West Asia crisis.
Management Commentary on Growth and Outlook
"We have had two successive years of growth and improved profitability, and we should be able to continue that going forward, albeit in slightly more uncertain and difficult times," said Srivats Ram, managing director of the company. Despite the uncertain macroeconomic environment, the company said it would continue investing for growth, with planned capital expenditure of Rs 280 crore for FY27, slightly higher than FY26 capex of Rs 261 crore. "We will continue to invest, and we remain cautiously optimistic," he added.
Capital Expenditure and Business Focus Areas
The capex will largely focus on debottlenecking existing automotive operations, aluminium wheel capacity, hydraulic cylinders, and windmill machining businesses. The company's annual revenue crossed the Rs 5,000-crore milestone for the first time in FY26. Standalone revenue for FY26 rose 16% to Rs 5,124 crore, compared to Rs 4,425 crore in FY25. Net profit increased 31% to Rs 139 crore from Rs 106 crore in the previous fiscal year.
Consolidated Performance and Key Drivers
On a consolidated basis, net profit rose to Rs 158 crore in FY26, up from Rs 112 crore in FY25. Ram attributed the strong performance to buoyant domestic automotive demand, the GST rate cut, stable commodity prices through most of the year, lower interest rates, and government-led rural stimulus measures. Exports remained a bright spot despite global trade disruptions and tariff-related uncertainty. Its exports grew 20% in Q4FY26, with nearly half of export revenues coming from the US market.
Challenges and Moderating Growth Expectations
However, the company cautioned that the operating environment has become more challenging since March following disruptions linked to the West Asia crisis. According to Ram, the company faced temporary issues related to aluminium and gas availability during March and April, while freight and fuel costs also rose sharply. While demand across end-user sectors remains intact, Wheels India expects growth to moderate in FY27 as automakers and tractor manufacturers have indicated a more cautious outlook. The board recommended a final dividend of Rs 9.14 per share. Combined with the interim dividend of Rs 5.3 per share declared earlier, the total dividend for FY26 stands at Rs 14.44 per share.
