Wheels India profit jumps as lower tax offsets flat operating margin
Sequential revenue growth was matched by expense growth, while lower tax and higher other income drove the rise in consolidated net profit.
Filed 29 Oct 2026, 14:41 IST · Wheels India Ltd (WHEELS)
Key takeaways
- Consolidated revenue grew 14.75% sequentially, but operating margin slipped 0.01 percentage points as expenses grew slightly faster.
- Net profit rose 54.49% sequentially, helped by a 4.77-percentage-point fall in the tax rate and other income contributing 19.88% of pre-tax profit.
- Operating margin at 7.49% was 5.13 percentage points below the 12.62% median for 94 Consumer Discretionary peers that had reported.
Price around the results
Revenue growth converted into higher pre-tax profit
Consolidated revenue increased 14.75% sequentially to Rs 1,710.95 cr, and operating profit rose 14.66% to Rs 128.21 cr. Profit before tax grew faster, at 44.78%, as other income increased 255.18% sequentially to Rs 15.77 cr. Net profit consequently rose 54.49% to Rs 60.16 cr.
Expenses kept the operating margin broadly flat
Expenses grew 14.76%, just ahead of the 14.75% revenue increase, leaving operating margin lower by 0.01 percentage points at 7.49%. Interest costs rose 7.91% sequentially, adding to the pressure below operating profit. Other income represented 19.88% of pre-tax profit, while the tax rate fell 4.77 percentage points to 24.15%, making the net-profit increase less representative of operating improvement alone.
Margin remains below the sector comparison
Wheels India's 7.49% operating margin was 5.13 percentage points below the 12.62% median among 94 Consumer Discretionary peers that had reported the quarter. Sequentially, the margin was almost unchanged from 7.50% in Q1FY27, so the available quarter-on-quarter comparison points to stability rather than expansion.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,711 cr | ₹1,491 cr | +14.75% |
| Other income | ₹16 cr | ₹4 cr | +255.18% |
| Expenses | ₹1,583 cr | ₹1,379 cr | +14.76% |
| Operating profit | ₹128 cr | ₹112 cr | +14.66% |
| Operating margin (%) | 7.49% | 7.50% | — |
| Interest | ₹31 cr | ₹29 cr | +7.91% |
| Depreciation | ₹34 cr | ₹33 cr | +2.83% |
| Profit before tax | ₹79 cr | ₹55 cr | +44.78% |
| Tax | ₹19 cr | ₹16 cr | +20.90% |
| Net profit | ₹60 cr | ₹39 cr | +54.49% |
| EPS (₹) | ₹24.21 | ₹15.68 | +54.40% |
Operating margin of 7.49% compares with a Consumer Discretionary sector median of 12.62% across 94 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.61% | -3.65% |
| Next session | -10.04% | — |
Volume on the results session was 3.98× its 20-day average.
What to watch
- Whether operating margin holds above 7.49% next quarter.
- Whether other income remains below its 19.88% share of pre-tax profit.
- Whether the tax rate stays near 24.15% after falling 4.77 percentage points sequentially.