Chennai-based automotive components manufacturer Wheels India has delivered a robust financial performance for the third quarter ended December 31, 2025, with profitability soaring significantly. The company's strong results were primarily fueled by enhanced domestic demand following the implementation of the GST 2.0 regime on key automotive parts.
Financial Highlights and Dividend Declaration
The company posted a net profit of Rs 32.05 crore in Q3 FY26, marking a substantial increase of 42% from Rs 22.57 crore recorded in the corresponding quarter of the previous fiscal year. Revenue for the quarter witnessed impressive growth, rising 21.7% year-on-year to reach Rs 1,287 crore, compared to Rs 1,058 crore a year earlier.
In a move rewarding shareholders, the board of Wheels India approved an interim dividend of Rs 5.3 per share. This represents a notable increase from last year's interim dividend of Rs 4.5 per share. The total payout amounts to Rs 12.95 crore, reflecting the company's strong cash position and confidence in its financial health.
Management Insights on Growth Drivers
Srivats Ram, Managing Director of Wheels India, attributed the company's stellar performance directly to the GST-related reforms. "Our traditional businesses—wheels for trucks, tractors, and passenger cars—received a strong growth impetus from GST 2.0, which helped drive robust volume growth in the quarter," he stated. Ram also highlighted that the relatively low base of Q3 FY25 contributed to the sharp revenue expansion observed in Q3 FY26.
Export demand remained resilient during the quarter, providing an additional boost to the overall performance. Ram noted that strong demand for construction equipment wheels in the US market and windmill components in the European Union helped exports grow close to 20% in Q3, showcasing the company's diversified global footprint.
Nine-Month Performance and Future Outlook
For the nine months ended December 31, 2025, Wheels India reported a consolidated net profit of Rs 86.3 crore, up from Rs 69.9 crore in the same period last year. Revenue for this period increased by 13.1% year-on-year to Rs 3,653 crore, compared with Rs 3,230 crore in the corresponding period of the previous fiscal year.
Looking ahead, Ram expressed optimism about sustaining the positive momentum. "The positive demand sentiment triggered by GST 2.0 is expected to sustain momentum into the fourth quarter," he said. He further added, "If the government continues to prioritise infrastructure spending in the upcoming Union Budget, this growth trend could extend into the next financial year."
On the export front, Ram emphasized that any improvement in global trade relations would further strengthen the company's long-term business prospects, indicating a strategic focus on both domestic and international markets for future growth.
