Revenue and Operating Performance
Over the seven-year period ending March 2025, Wheels India’s net sales exhibited a general upward trend, rising from ₹3,441 crores in 2019 to ₹4,744 crores in 2025. The company experienced a notable dip in sales during the fiscal year 2021, coinciding with broader economic disruptions, but rebounded strongly in subsequent years. Total operating income mirrored this pattern, with no other operating income reported, indicating reliance on core business activities.
Raw material costs consistently represented the largest expenditure, increasing from ₹2,494 crores in 2019 to ₹3,261 crores in 2025, reflecting both volume growth and input cost pressures. Employee costs also rose steadily, reaching over ₹507 crores in the latest fiscal year, while other expenses followed a similar upward trajectory. Despite these cost increases, Wheels India managed to improve its operating profit (PBDIT) from ₹245 crores in 2019 to ₹357 crores in 2025, with operating profit margins expanding to 7.43% in the latest year from 7.13% in 2019.
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Profitability and Earnings
Profit before tax (PBT) showed considerable volatility, with a low point of under ₹1 crore in 2021, followed by a recovery to ₹142 crores in 2025. Correspondingly, profit after tax (PAT) rose from ₹74 crores in 2019 to ₹106 crores in 2025, with consolidated net profit reaching nearly ₹111 crores in the latest fiscal year. Earnings per share (EPS) reflected this improvement, climbing from ₹31.8 in 2019 to ₹45.4 in 2025, despite a sharp decline in 2021.
Margins have been modest but improving; the PAT margin increased to 2.36% in 2025 from 2.21% in 2019, indicating better cost control and operational efficiency. Interest expenses rose over the years, reaching ₹122 crores in 2025, which impacted gross profit before depreciation and tax. Depreciation charges also increased, consistent with asset base expansion.
Balance Sheet and Financial Position
Wheels India’s shareholder funds grew steadily, from ₹661 crores in 2020 to ₹922 crores in 2025, supported by rising reserves. The company’s net block of fixed assets expanded from ₹744 crores in 2020 to ₹1,285 crores in 2025, reflecting ongoing capital investments. Total liabilities increased in line with asset growth, reaching over ₹3,188 crores in 2025.
Long-term borrowings rose from ₹283 crores in 2020 to ₹303 crores in 2025, while short-term borrowings fluctuated but remained significant at ₹422 crores in 2025. Trade payables and other current liabilities also increased, indicating higher operational scale. Notably, net current assets were negative in recent years, suggesting working capital management challenges.
Cash Flow Trends
Operating cash flow improved markedly, reaching ₹400 crores in 2025 from ₹183 crores in 2020, signalling stronger cash generation capacity. Investing activities consistently reflected cash outflows due to capital expenditure, while financing activities showed net outflows in recent years, indicating debt repayments or dividend distributions. The company maintained a stable cash and bank balance around ₹5 crores in 2025.
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Summary of Historical Performance
Wheels India’s historical performance reveals a company that has navigated cyclical challenges and economic headwinds with resilience. Revenue growth has been steady, supported by expanding production capacity and market demand. Profitability margins have improved gradually, although they remain modest, reflecting the capital-intensive nature of the business and rising input costs.
The balance sheet shows a strengthening equity base alongside increased borrowings, which have been managed prudently. Cash flow generation has improved, underpinning the company’s ability to fund investments and service debt. However, working capital management remains an area to watch, given the negative net current assets in recent years.
Overall, Wheels India’s financial journey over the past seven years demonstrates consistent operational scale-up and cautious financial stewardship, positioning it well for future growth opportunities in the auto components sector.
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