Enkei Wheels (India) Limited reported a net profit of ₹102.47 million for the first quarter of FY27 (Q1FY27), ending June 30, 2026, reversing a net loss of ₹6.07 million recorded in the fourth quarter of FY26 and a loss of ₹17.12 million in Q1FY26. The profitability turnaround coincided with a 36.8% year-on-year surge in revenue from operations to ₹3,190.32 million, up from ₹2,331.61 million in Q1FY26. For the half-year period ended June 30, 2026, the company posted a net profit of ₹96.40 million compared to a loss of ₹70.09 million in the corresponding period last year.

The Board of Directors approved the unaudited financial results during a meeting held on August 6, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Kirtane & Pandit LLP issued an unmodified limited review report on the financial statements, which were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and Schedule III of the Companies Act, 2013.

Financial Performance Highlights

Revenue growth was supported by strong operational performance in the company's single identified operating segment, Automotive Wheels. Total revenue reached ₹3,192.34 million for the quarter, including other income of ₹2.02 million. While total expenses increased to ₹3,053.79 million, primarily due to higher cost of materials consumed at ₹2,308.78 million, the company managed to generate a profit before tax of ₹138.55 million. This compares to a loss before tax of ₹6.47 million in the previous quarter and ₹17.12 million in the same quarter last year.

The following table summarises key financial metrics across comparable periods:

Earnings per share (EPS) stood at ₹5.70 for the quarter, a significant improvement from the diluted EPS of (₹0.34) in the preceding quarter. For the half-year ended June 30, 2026, basic EPS was ₹5.36.

EBITDA and Margin Expansion

Operational efficiency gains were further reflected in the company's EBITDA performance. EBITDA for Q1FY27 rose to ₹305 million from ₹168 million in Q1FY26, representing a substantial year-on-year improvement. Correspondingly, EBITDA margin expanded to 9.57% from 7.21% in the same period last year, underscoring the benefit of operating leverage as revenue volumes scaled up.

Balance Sheet and Cash Flow Signals

The company's balance sheet reflects increased leverage alongside growing receivables. Total borrowings rose to ₹3,071.85 million as of June 30, 2026, comprising ₹1,241.67 million in non-current borrowings and ₹1,830.18 million in current borrowings, up from ₹2,100.35 million at the end of FY25. Trade receivables increased sharply to ₹1,821.91 million from ₹1,235.92 million at year-end, indicating potential working capital pressure despite revenue growth.

Cash flow from operating activities turned negative at (₹538.59) million for the half-year, primarily driven by an increase in trade receivables of ₹585.99 million and a decrease in trade payables of ₹444.58 million. However, financing activities provided a net cash inflow of ₹878.39 million through proceeds from short-term and long-term borrowings, resulting in a net increase in cash and cash equivalents to ₹110.23 million from ₹5.54 million.

What the Numbers Show

The shift from loss to profit in Q1FY27 is largely attributable to volume-driven revenue growth outpacing the rise in material costs, with EBITDA margin expansion to 9.57% from 7.21% reinforcing the operational improvement story. However, the divergence between strong accrual-based profits and negative operating cash flow highlights a reliance on debt financing to fund working capital expansion. The significant rise in trade receivables suggests that while sales are robust, collection cycles may be extending, requiring close monitoring of credit risk and liquidity management in subsequent periods.

Enkei Wheels (India) Limited released its unaudited financial results for the quarter and year ended March 31, 2026. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 12, 2026. The company reported a mixed performance, with revenue growth on a year-on-year basis offset by elevated expenses, though both EBITDA and net loss showed meaningful improvement over the prior year period.

Revenue Performance: Strong YoY Growth in Q4 FY26

Revenue from operations for Q4 FY26 stood at ₹2,990.60 million, a significant increase compared to ₹2,279.81 million recorded in Q4 FY25. Other income for the quarter was ₹1.99 million, bringing total revenue to ₹2,992.59 million, up from ₹2,281.16 million in the corresponding quarter of the previous year. On a sequential basis, total revenue rose from ₹2,504.06 million in Q3 FY26. For the full year ended March 31, 2026, revenue from operations was ₹9,716.29 million, with other income of ₹25.35 million, taking total revenue to ₹9,741.64 million.

The following table summarises the key revenue and profitability metrics:

EBITDA Improvement Signals Operational Progress

On an operational profitability basis, Enkei Wheels reported EBITDA of ₹188 million for Q4 FY26, a notable improvement from ₹112 million in Q4 FY25. The EBITDA margin expanded to 6.30% from 4.90% in the year-ago quarter, reflecting improved operating leverage despite the elevated cost environment. This improvement underscores that while the bottom line remained in loss territory due to finance costs, depreciation, and exceptional items, the underlying business operations showed a positive trajectory on a year-on-year basis.

Expense Breakdown: Cost Pressures Weigh on Q4 FY26

Total expenses for Q4 FY26 rose to ₹2,997.80 million from ₹2,353.25 million in Q4 FY25, outpacing revenue growth and resulting in a loss before exceptional items and tax of ₹(5.21) million. Key expense components for Q4 FY26 are detailed below:

Exceptional Items: Labour Code Impact

The company recognised an exceptional item of ₹1.26 million in Q4 FY26, representing an incremental impact of the new Labour Codes notified by the Government of India on November 21, 2025. The four Labour Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—consolidate 29 existing labour laws. The total impact on employee benefits is ₹47.10 million, primarily arising from a change in wage definition. Of this, ₹45.84 million was accounted for during the finalisation of results for the year ended December 31, 2025, with the remaining ₹1.26 million recognised in Q4 FY26.

Bottom Line and Earnings Per Share

After accounting for tax expense of ₹(0.40) million in Q4 FY26, the company reported a net loss of ₹6.07 million for the quarter, a marked improvement from a net loss of ₹52.97 million in Q4 FY25. Total comprehensive income for Q4 FY26 stood at ₹8.00 million, aided by other comprehensive income of ₹14.07 million, primarily from remeasurement gains on defined benefit obligations. For the full year, net profit was ₹51.34 million and total comprehensive income was ₹42.30 million.

Earnings per share (face value of ₹5/- each, not annualised for quarterly figures) are summarised below:

Paid-up equity share capital remained unchanged at ₹89.87 million across all reported periods, with other equity excluding revaluation reserves at ₹2,306.76 million for the full year. The company has identified "Automotive Wheels" as a single operating segment, as evaluated by the Chief Operating Decision Maker in accordance with Ind AS 108.