Enkei Wheels Delivers Strong Q2 Turnaround with 79M Rupees Net Profit
Enkei Wheels (India) Limited has reported a significant financial turnaround in Q2 FY2025-26. The company posted a net profit of 79 million rupees, compared to a loss of 45 million rupees in the same period last year. Revenue increased by 11.1% to 2,651.00 million rupees. EBITDA saw a substantial rise of 203.0% to 300.00 million rupees, with the EBITDA margin expanding by 717 basis points to 11.31%. The improved performance suggests enhanced operational efficiency and cost management.
*this image is generated using AI for illustrative purposes only.
Enkei Wheels (India) Limited has reported a significant turnaround in its financial performance for the second quarter. The automotive wheel manufacturer has successfully transformed its bottom line, posting a net profit of 79 million rupees compared to a loss of 45 million rupees in the same period last year.
Financial Highlights
| Metric | Q2 FY2025-26 | Q2 FY2024-25 | YoY Change |
|---|---|---|---|
| Revenue | 2,651.00 | 2,386.00 | +11.1% |
| EBITDA | 300.00 | 99.00 | +203.0% |
| EBITDA Margin | 11.31% | 4.14% | +717 bps |
| Net Profit | 79.00 | -45.00 | N/A |
The company's revenue grew to 2,651.00 million rupees from 2,386.00 million rupees year-over-year, marking an 11.1% increase. This growth in top-line performance was accompanied by a substantial improvement in operational efficiency.
Operational Performance
Enkei Wheels witnessed a remarkable surge in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which rose to 300.00 million rupees from 99.00 million rupees in the previous year. This represents a 203.0% increase in EBITDA year-over-year.
The EBITDA margin expanded significantly, reaching 11.31% compared to 4.14% in the same quarter last year. This 717 basis points improvement in margin indicates enhanced operational efficiency and cost management.
Key Factors Contributing to Growth
While specific details on the factors driving this turnaround are limited, the substantial improvement in EBITDA and margins suggests:
- Improved operational efficiency
- Potential cost-cutting measures
- Possible increase in demand for automotive wheels
- Favorable raw material pricing or better inventory management
Management Commentary
The company's financial results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on November 5, 2025. However, specific management commentary on the results was not provided in the available data.
Outlook
While the results show a significant improvement, it's important to note that the company has not provided forward-looking statements or guidance for future quarters. Investors and analysts will likely keep a close eye on whether Enkei Wheels can sustain this improved performance in the coming quarters.
As the automotive industry continues to evolve, companies like Enkei Wheels that can demonstrate operational efficiency and profitability are likely to attract investor attention. However, potential investors should conduct thorough research and consider various factors before making investment decisions.
The company continues to operate in the "Automotive Wheels" segment, as identified by its Chief Operating Decision Maker (CODM), and has not reported any changes in its operational structure or segmentation.
Enkei Wheels' ability to turn a significant loss into a profit within a year is noteworthy. However, consistent performance over multiple quarters would be key to establishing a long-term positive trend.
Historical Stock Returns for Enkei Wheels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.02% | -2.12% | -1.10% | -7.72% | -32.35% | +103.10% |
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