Rolex Rings Q2 FY27 Results (NSE: ROLEXRINGS)
Signal: Margin expansion
The read
The key inflection is operating momentum: revenue growth accelerated to 40.08% YoY in Q2FY27 from 4.37% in Q1FY27, while EBITDA margin held at 28.90% after a 742bps gross-margin expansion. EBITDA grew 58.79% versus revenue growth of 40.08%, but ₹151.72 million of other income and the disclosed ₹180.34 million tariff-refund income make the quality of PAT growth worth monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹380.18 Cr | 40.08% | 24.92% |
| EBIT | ₹99.63 Cr | 68.65% | |
| Net profit | ₹73.94 Cr | 66.72% | |
| EPS | ₹2.78 | 70.55% | |
| EBIT margin | 28.90% |
P&L walk
Standalone revenue rose 40.08% YoY to ₹3,801.83 million and EBIT grew 68.65% to ₹996.32 million; gross-margin expansion and fixed-cost absorption lifted EBITDA margin to 28.90%, while PAT also benefited from ₹151.72 million of other income including the disclosed tariff-refund income.
Key positives
- Revenue rose 40.08% YoY to ₹3,801.83 million, a sharp acceleration from 4.37% YoY growth reported for Q1FY27.
- EBITDA rose 58.79% YoY to ₹1,098.79 million versus revenue growth of 40.08%, with EBITDA margin expanding 340bps to 28.90%.
- Raw-material cost declined to 47.89% of revenue from 50.97%, driving a 742bps gross-margin expansion to 59.06%; the filing does not disclose the precise cause.
- Employee cost rose only 10.90% YoY to ₹206.55 million while revenue rose 40.08%, supporting fixed-cost absorption.
- EPS rose 70.55% to ₹2.78, ahead of 66.72% PAT growth, following the 10.00 million-share buyback.
Key concerns
- Other expenses rose 71.38% YoY to ₹1,176.67 million, faster than revenue growth of 40.08%, limiting the conversion of gross-margin gains into EBITDA.
- H1 operating cash flow declined 16.79% YoY to ₹704.87 million despite H1 PAT of ₹1,340.78 million, as inventories rose to ₹2,990.10 million and receivables to ₹2,668.47 million.
- The quarter included ₹151.72 million of other income and the company disclosed ₹180.34 million of US tariff-refund income for Q2, creating a non-operating support to reported earnings that may not recur.
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