Wheels India reported an 88 per cent increase in net profit to ₹60 crore for the second quarter ended September 30, 2026. Revenue rose 36 per cent to ₹1,723 crore. Srivats Ram said, "The demand has been much higher in Q2." The firm also increased its annual capex to ₹450 crore.
Increases capex spend to around ₹450 crore this fiscal as against the usual ₹250 crore to ₹300 crore
Wheels India Ltd, the Chennai-based automotive component manufacturer, on Thursday reported an 88 per cent increase in net profit to ₹60 crore for the second quarter ended September 30, 2026, as against ₹32 crore in the same period last year. Revenue was up 36 per cent to ₹1,723 crore (₹1,268 crore).
Standalone net profit rose to ₹53 crore (₹28 crore) on revenue of ₹1,585 crore (₹1,173 crore).
"The demand has been much higher in Q2, and some of the sectors that we are in have been more profitable," Srivats Ram, Chairman and Managing Director, Wheels India, told businessline on the reasons for the increased profitability.
The US market has significantly contributed to export growth. Sales to the US increased around 50 per cent year-on-year in the second quarter, supported by demand for earthmover wheels. Ram said the company was also benefiting indirectly from the boom in data centre construction in the US, which has increased demand for construction equipment.
Exports grew to ₹388 crore in Q2 compared to ₹299 crore in the same quarter of last year.
Fundraising
The company raised funds totalling ₹430 crore (₹180 crore through a preferential issue and ₹250 crore through a QIP) to reduce debt. The fundraise and the debt reduction were completed by the end of September 2026, he said.
The second quarter saw strong sales growth in earthmover wheels, air suspension, and the domestic Indian markets for cars, trucks, and tractors, he said. "In the second half, inflation is a concern. Growth will also be affected by a higher base effect arising out of GST 2.0 demand push that we benefited from in H2 last year," said Ram.
Wheels India manufactures wheels for trucks, agricultural tractors, passenger vehicles and construction equipment.
Increased capex
The company's capital expenditure for the fiscal year will be ₹400-450 crore, significantly above its typical annual spending of about ₹250 crore in the last couple of years, as strong demand across its businesses prompts it to accelerate capacity additions and address production bottlenecks, the MD said. The company had been seeking additional capex approvals at successive board meetings to keep pace with customer requirements, he added.
Capex in the second quarter stood at more than ₹91 crore, bringing first-half expenditure to about ₹145 crore. The company remains on track with its investment programme, with no indication of a slowdown in planned spending, he said.
The second half will also face a tougher comparison because the benefits of GST 2.0 began flowing through to automotive markets from October last year, supporting stronger third- and fourth-quarter performance, he said.
Capacity constraints persist in some areas, and the company is gradually working to remove these bottlenecks. Management said the additional investments were necessary to support growth, with demand remaining strong despite uncertainty over the pace of economic activity, he said.
Construction equipment-related wheels, largely exported, were among the major growth drivers. The company also reported strong demand for air suspension systems used in buses, alongside growth in the domestic passenger vehicle, commercial vehicle and tractor markets..