Rolex Rings Limited – Investor Presentation Summary

Key Operational Highlights

  • Q2 FY27 revenue from operations reached ₹389 crore, representing 43.4% YoY growth
  • Monthly order book remains strong in the range of ₹120-125 crore per month
  • Capacity utilization at 63-65% providing ample room for growth
  • 26 forging lines with combined installed capacity of 1,65,000 MTPA
  • 625 machining spindles with capacity of 75 million parts per annum
  • Labor situation fully normalized from start of Q2 FY27

Key drivers of operational performance: New customer plants beginning supplies in Q3, new programs scaling up, strong order conversion pace

Segment-wise Performance

  • Automotive Components: ₹177 crore in Q2 FY27, 68% YoY growth, 54% of component sales
  • Bearing Rings: 6% growth supported by domestic business
  • Export performance: Automotive exports up 89% YoY, US automotive revenues more than doubled

Explanation of significant changes in segment performance: Growth in automotive segment driven by renewed customer confidence after FY26 order holdbacks and scaling of new programs won last year

Financial Highlights

Revenue: ₹389 crore (Q2 FY27)

EBITDA: ₹94 crore (Q2 FY27)

PAT: ₹74 crore (Q2 FY27)

EPS: ₹3.16 (Q2 FY27)

Margins: Gross Margin 59.8% (820 bps expansion), EBITDA Margin 24.2% (400 bps expansion), PAT Margin 19.1% (280 bps expansion)

YoY/QoQ comparison: Q2 FY27 vs Q2 FY26 - Revenue +43.4%, EBITDA +72%, PAT +67.5%

Drivers of financial performance: Higher revenue growth, customs duty refund of ₹18 crore, operational efficiencies despite cost pressures

Comparison to market estimates: Not Specified

Key Risks: Higher ocean freight costs (3x increase), increased fuel costs, higher consumable costs due to West Asia conflict escalation

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified in quantitative terms

Regional Breakdown: Strong presence in USA, India, Canada, France, South Africa; expanding in Europe with discussions with large OEM for commercial vehicles and industrial products

Balance Sheet Snapshot

Net Debt/Equity: Debt-free balance sheet

Reserves: ₹1,139.8 crore (Sep-26)

Current Assets/Liabilities: Current Assets ₹853.7 crore, Current Liabilities ₹151.0 crore (Sep-26)

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong cash position, completed ₹180 crore buyback, investments of ₹288.2 crore in financial assets

Capex & Cash Flow Health

Capital Expenditure: CWIP of ₹39.5 crore (Sep-26)

Free Cash Flow: Not Specified

Operating Cash Flow: ₹68.1 crore net cash from operating activities (H1 FY27)

Net Debt Movement: Debt-free status maintained

Investment Rationale: Focus on capacity expansion, technology upgrades, and diversification into new sectors

Strategic & R&D Initiatives

Investments in Innovation: Expanding into defence and aerospace with registrations and initial approvals received

Expected impact on growth: Revenues expected from defence and aerospace segment over next 12 months

Strategic Rationale: Moving up value chain from core ring forging to advanced precision-engineered assemblies for automotive, EVs, railways, and high-performance machinery

Industry Trends & Business Environment

Macro/Industry Trends: US tariffs implementation, West Asia conflict impacting freight and fuel costs, growing automotive demand

Impact on Company: US tariffs did not impact business relationships, West Asia conflict increased operational costs but margins maintained

Management Commentary & Growth Outlook

Strategic Outlook: "We expect H2 FY27 to be stronger than H1. One to two new customer plants begin supplies in Q3, new programmes continue to ramp up" - Manesh Madeka, Chairman & MD

FY Guidance: Not explicitly provided but optimistic outlook for H2 FY27

Market Share Targets: Ambition to be the most trusted precision forging partner for world's leading bearing and automotive OEMs

Risks and Opportunities: Building new growth avenues in defence and aerospace, expanding global footprint beyond US/EU into Asia-Pacific and Middle East

ESG Updates

  • Total installed renewable energy capacity: 21.55 MW (2.3 MW rooftop solar, 15.5 MW ground mounted solar, 3.75 MW windmill)
  • Additional 9MW solar plant to be setup by Mid-CY2026
  • Target: 60% consumption from renewable energy by 2030
  • Afforestation: 12,000+ trees planted over past five years, 500+ trees planted annually
  • Water Management: Wastewater treated and reused for gardening and internal applications
  • Circular Waste Management: Canteen waste processed through biogas plant for cooking, oil-water separator system for reuse