Enkei Wheels swings to ₹10.2 Cr Q1 profit as OPM expands to 10.7% on 37% revenue growth

Enkei Wheels (India), a single-segment automotive wheels manufacturer, reported standalone revenue from operations of ₹319.03 Cr for Q1 FY27 (quarter ended June 30, 2026), up 36.8% year-on-year from ₹233.16 Cr and up 6.7% sequentially from ₹299.06 Cr. The company swung to a net profit of ₹10.25 Cr against a net loss of ₹1.71 Cr in the year-ago quarter and a loss of ₹0.61 Cr in the immediately preceding quarter — a turnaround on both counts, with basic EPS at ₹5.70 versus ₹(0.95) YoY and ₹(0.34) QoQ. The turnaround was driven by operating leverage: operating margin (OPM) expanded to 10.73% from 7.23% a year earlier and 6.28% last quarter, as the higher revenue base absorbed a comparatively contained rise in costs (total expenses rose 28.9% YoY to ₹305.38 Cr against 36.8% revenue growth). Net profit margin followed, turning positive at 3.21% versus -0.73% YoY and -0.20% QoQ. The company recorded current tax of ₹4.79 Cr this quarter versus nil/negative tax in the loss-making comparison quarters, reflecting the return to taxable profit. There were no exceptional items in the current quarter — unlike the preceding quarter and FY26, which carried small one-off provisions (₹1.26 Mn and ₹45.84 Mn respectively) tied to a change in Gratuity/Leave-encashment liability estimates under the new Labour Code — so this quarter's improvement is entirely operational rather than one-off driven. No formal management guidance or analyst/street consensus estimates were found on record for this quarter — Enkei Wheels is a small-cap auto ancillary with limited analyst coverage, and a web search turned up no Q1 FY27 preview specific to the company, so vsStreet and vsGuidance are marked unknown rather than inferred. No management press-release commentary was available beyond the standard board-meeting intimation and the unaudited results; the filing carries an unmodified limited-review report from Kirtane & Pandit LLP. Going into Q2 FY27, the sustainability of the ~10.7% OPM — above both comparison quarters — is the key marker to track, alongside whether the current-tax run-rate holds now that the company is back to taxable profit.