Wheels India Ltd. shares declined over 5% on Tuesday despite the company reporting a 28% year-on-year rise in its first-quarter net profit, as investors assessed its earnings and outlook.
The stock was trading at Rs 1,407.8 apiece on NSE around 1.12 pm today after losing over 88 points from its previous close at Rs 1,495.6.
The company posted a consolidated net profit of Rs 38.3 crore for the quarter ended June, up 27.7% from Rs 30 crore a year earlier. Revenue from operations rose 17.8% year-on-year to Rs 1,491 crore, compared with Rs 1,266 crore in the corresponding period last year.
Operating performance also improved during the quarter. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 19.1% to Rs 112 crore from Rs 94 crore a year ago, while the Ebitda margin expanded marginally to 7.5% from 7.4%.
Domestic Demand, Exports Drive Growth
Commenting on the performance, Managing Director Srivats Ram said the company's sales tracked the strength in the domestic automobile market while exports also remained robust.
"The company's sales grew along with the domestic market for cars, trucks and agriculture tractors that continued their momentum post GST 2.0 reforms. In addition, we saw strong growth in the export of construction equipment wheels. There were strong inflationary pressures on material costs due to the West Asia crisis," Ram said.
Despite cost pressures, the company remains optimistic about demand in the current quarter.
"We expect the growth momentum to continue in Q2," Ram said.
Shares Up 84% In A Year
Despite the recent fall in the share price of Wheels India, the stock has remained up over a year and rallied close to 84% during the period.
Since the beginning of 2026, the stock has surged over 62.6% when the broader market was down by 8.2%.
The stock is trading at a price-to-earnings multiple of 23.3 times, with a market cap of Rs 3,437 crore as of the end of the last trading session.
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