Rolex Rings (ROLEXRINGS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was ₹2,916 million, up from ₹2,839 million in the previous quarter but down from ₹3,108 million year-over-year.

• EBITDA for Q1 FY26 was ₹772 million with a margin of 26.5%, benefiting from gross margin improvements and forex gains.

• PAT for Q1 FY26 stood at ₹492 million, a slight decrease year-over-year and sequentially.

• Domestic market share increased to 53% of revenue, with Europe and domestic segments showing growth, while U.S. exports remain subdued.

• New programs, especially in Europe, are ramping up, with 50-60% of new business from this region.

Financial highlights

• Q1 FY26 EBITDA margin was 26.5% (including other income), compared to an average of 23% in previous years.

• Profit before tax for Q1 FY26 was ₹680 million; PAT was ₹492 million.

• Cash flows remain strong, averaging ₹2,250 million annually over the last three years.

• Net debt is negative or at a low 0.06 ratio, with surplus funds invested and strong liquidity.

• CapEx for FY26 is projected at ₹300-350 million.

Outlook and guidance

• FY26 revenue growth is now expected in the early teens due to U.S. tariff uncertainties, down from earlier 14-16% guidance.

• EBITDA margin (excluding other income) is expected to be 21-22%, in line with previous years.

• Overseas demand, especially for bearing rings, remains subdued; US market expected to stay weak, while Europe shows signs of improvement.

• Management expects to pass on potential tariff increases to customers in the short term, with some impact on future export revenue and profitability.

• FY27 growth is expected to be higher, contingent on resolution of tariff issues.