Rolex Rings — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Rolex Rings delivered a strong Q3 FY26 performance with notable year-on-year growth in revenue and PAT, driven by enhanced EBITDA margins. The company provided an optimistic outlook for FY27, projecting mid-to-high teen revenue growth and increased capacity utilization, while actively addressing US tariff uncertainties and resolving the ROR interest issue. New order book additions and positive traction in domestic and European markets underpin the growth strategy.

Highlights

  • Revenue from operations for Q3 FY26 reached ₹275 crores, marking a 5.77% YoY growth.

  • EBITDA for Q3 FY26 stood at ₹75 crores, with an improved margin of 25.7%.

  • Net Profit After Tax (PAT) for Q3 FY26 was ₹48 crores, a significant 140% YoY increase.

  • FY27 revenue growth is guided at 15-18% overall, with capacity utilization targeted at 72-75%.

  • The order book for Q1 FY27 is projected to be ₹325-330 crores.

  • Management expects a sharp recovery in the US market from Q1 FY27 despite ongoing tariff uncertainties.

  • Resolution of the ROR interest issue with bankers is anticipated before March 2026.

  • Long-term plan to double revenue by March 2030, targeting 12-14% CAGR over the next 3-5 years.

Concerns

  • US Tariff Uncertainty

Key financials

  1. Revenue ₹275 Cr +5.8%YoY
  2. EBITDA ₹75 Cr +8.7%QoQ
  3. EBITDA Margin 25.7%
  4. PAT ₹48 Cr +140%YoY

What they filed

Q1 FY27: revenue up 4.1%, net profit up 22.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue300 260 284 292 271 −10%275 +6%306 +8%304 +4%
EBITDA66 51 52 62 55 −17%58 +14%56 +8%69 +11%
Net profit49 20 55 49 44 −10%48 +140%0 −100%60 +22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Domestic Bearing Ring Revenue
₹168.41 Cr Total
  • Q3 FY26 ₹95.37 Cr 56.6%
  • Q3 FY25 ₹73.04 Cr 43.4%

Guidance & targets

Revenue Growth

  • Overall Revenue Growth Revenue Growth · FY27 · Medium confidence 15-18%
    As of now we still expect and on the basis of the forecast on this end we expect in between you know maybe 16 to, or rather 15 to 18% of overall growth.

    — Hiren

  • Overall Revenue Growth Revenue Growth · FY26 · Medium confidence Flat
    we would be having the same kind of numbers for the fiscal 26 what we had in fiscal 25.

    — Hiren

  • CAGR Growth Revenue Growth · Next three to five years · Medium confidence 12-14%
    in between 12 to 14% CAGR growth on for the next three to five years.

    — Hiren

Order Book

  • Monthly Order Book Order Book · Next three months (Q4 FY26) · High confidence ₹95-105 crores
    Order book as of now on a monthly basis, it is ranging somewhere about 95 to 105 crore for the next three months.

    — Hiren

  • Total Order Book Order Book · Q1 FY27 · High confidence ₹325-330 crores
    So, for the first quarter of FY27, your order book will stand at close to 325 crore? Is that what you're saying? Hiren: 325 to 330.

    — Hiren

Capacity Utilization

  • Overall Capacity Utilization Capacity Utilization · Next year (FY27) · Medium confidence 72-75%
    almost 62, 63% utilization of my overall the same and I hope or rather we expect it would be somewhere about, you know crossing 72, in between 72 to 75% of utilization in next year.

    — Hiren

Profitability

  • Net Operating EBITDA Margin Profitability · With 68-70% utilization · Medium confidence 22-22.5%
    And once I'll be having utilization up to, you know, 68, 70% or something like that, definitely this operating margin would touch maybe 22% or 22.5 even, we can achieve once we have that kind of scale of economy.

    — Hiren

Revenue

  • Total Revenue Revenue · By March 2030 · Low confidence Double current revenue
    maybe March 2030, we would be touching, or rather we in turn, we have a plan to, you know, almost double the revenue, what we have.

    — Hiren

ROR Issue Resolution

  • Resolution Timeline ROR Issue Resolution · March 2026 · High confidence Before March 26
    we would like to close this matter maybe before March 26.

    — Hiren

Risks & concerns

  • US Tariff Uncertainty

    high

    Management is awaiting fine print and HSN details to fully understand the impact of reduced US tariffs, which has caused uncertainty and impacted export volumes.

    Management acknowledged

  • Geopolitical Reasons & Customer Plant Closures

    medium

    Geopolitical factors and temporary plant closures by two major US customers due to tariffs have led to postponement of certain orders and a significant dip in US export volumes.

    Management acknowledged

  • Impact of New Labour Code

    low

    A one-time exceptional item of ~₹2.5 crores was accounted for in Q3 FY26 PAT due to potential gratuity liability from the new labor code.

    Management acknowledged

Q&A highlights

2 direct
Clarity on US Tariffs for Auto Components and Bearing Rings Partial
So, now looking to the notification or rather the issued by the US government we are not sure whether this 25%, what it is applicable to us as of now, because we also got a feedback that it would be a zero also in certain auto components, it would be an 18% also on certain kind of this thing, or it may continue with the 25% also. But that is subject to the clarification and detailed notification along with the respective, you know, HSN.

The response highlights ongoing uncertainty regarding the exact impact of new US tariffs on the company's export business, crucial for future revenue and profitability.

Asked by Jason Jones

Promoter Share Transactions and Pledging Direct
Its a let me tell you definitely you have not seen frequently in past, and again you will not be seeing the same in future. There is some kind of, I would say miscalculation or something, you know some kind of Initially promoters has acquired to, you know, increase his take only, but there were some kind of urgency where in the you know, the funds was supposed to be deployed in a day or two only. So that was the temporary option available to particular promoter.

Asked by Manish

New SOPs and Order Book Conversion Direct
Out of that, almost 60% of that volume, it has been started why 60%? it's not like that order cancelled or other order has not started. It has started with a low of take. And certain orders it has been postponed because of this let me tell you, two big customers based at US it was completely rather they have what do you say? Temporarily just closed down that particular plant where the import duty was 3% and thereafter phase-wise it has been to 53%.

Asked by Saurabh Jain

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Rolex Rings reported a robust Q3 FY26 with revenue from operations reaching ₹275 crores, marking a 5.77% year-on-year growth from ₹260 crores in Q3 FY25. EBITDA stood at ₹75 crores, translating to an improved margin of 25.7%, up from 24.2% in the previous quarter. Net profit after tax (PAT) saw a significant increase to ₹48 crores, a 140% jump from ₹20 crores in Q3 FY25, despite a ₹2.5 crore exceptional item related to new labor code gratuity liability.

US Tariff Landscape and Export Outlook

The company highlighted the recent reduction in US import duties to 18% from previous rates as high as 50%, following the withdrawal of the Russian oil penalty. While the exact fine print and HSN codes are awaited, management expects a sharp recovery in the US market from Q1 FY27, as customers absorb the 25% duty and momentum returns. US exports for auto components experienced a 10% downfall in Q3 FY26 compared to Q2 FY26, and were almost 30% down compared to FY25, due to tariff uncertainties and temporary plant closures by two major US customers.

Domestic and European Market Traction

In contrast to the US market, domestic and European markets showed positive momentum. Auto component revenue grew by almost 14% in Q3 FY26 over Q2 FY26, with Europe exports seeing a 10% incremental revenue over Q2 FY26, and 25% compared to 9M FY25. Domestic business also recorded a 5-6% upward trend over Q2 FY26 and a 15% improvement over FY25. Management anticipates continued improvement from Q1 FY27, driven by new customer additions and increased orders, particularly from Europe due to favorable FTA developments.

Capacity Utilization and Order Book

Rolex Rings currently operates at an overall capacity utilization of 62-63% for the nine-month period. Management projects an increase to 72-75% utilization in FY27, which is expected to drive improved operating margins. The current monthly order book for the next three months (Q4 FY26) is strong, ranging from ₹95-105 crores. Furthermore, the total order book for Q1 FY27 is anticipated to be between ₹325-330 crores, indicating healthy near-term demand.

Profitability and Margin Outlook

The company's net operating EBITDA margin for Q3 FY26 was 25.7%, with the net of other income margin at 21%. Management aims to achieve a net operating EBITDA margin of 22-22.5% once capacity utilization reaches 68-70%, benefiting from economies of scale. Auto components are expected to continue yielding better margins (20-25% net EBITDA) compared to bearing rings (18-22% net EBITDA) due to critical operations and higher value-added processes, including those for EV hybrid vehicles.

Promoter Activities and ROR Resolution

Management addressed analyst concerns regarding promoter share transactions in December, clarifying it was a temporary action due to urgent fund deployment, which resulted in a tax loss. They assured such instances would not recur. Regarding promoter share pledging, it was stated to be a small portion, less than 5% of promoter holding and 2.5-2.7% of total equity, committed for investment purposes. The company also confirmed that the ROR interest issue with bankers is being resolved, with a final closure expected before March 2026.

Long-Term Growth Trajectory

Rolex Rings maintains a positive long-term outlook, guiding for an overall revenue growth of 15-18% for FY27. For the next three to five years, the company targets a CAGR of 12-14%. Ambitiously, management has a plan to almost double its current revenue by March 2030, driven by new customer acquisitions, particularly in auto components from Europe and Mexico, and increased wallet share with existing domestic bearing ring manufacturers who are expanding.

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