💰 Financial Performance

Revenue Growth by Segment

For H1 FY2026, Super Abrasives revenue grew 3.8% YoY to INR 73.40 Cr, while Precision Products grew 6.3% YoY to INR 13.93 Cr. However, the Machines and Accessories segment saw a significant decline of 28.9% YoY to INR 9.31 Cr, leading to overall flat standalone sales of INR 49.86 Cr in Q2 FY2026.

Geographic Revenue Split

In Q2 FY2026, domestic sales stood at INR 39.22 Cr (flat YoY), while exports declined by 5% YoY to INR 10.64 Cr. The company derives approximately 78% of its standalone revenue from the domestic market and 22% from exports.

Profitability Margins

Profitability has been significantly impacted by brand amortization; Q2 FY2026 standalone PAT fell 57% YoY to INR 4.55 Cr, and consolidated PAT dropped 75% YoY to INR 2.70 Cr. FY2025 PAT margin was 17.1%, down from higher historical levels due to these non-cash charges.

EBITDA Margin

The company maintained an EBITDA margin of 22.8% in FY2025. Core profitability is currently pressured by a lower mix of high-margin machine sales and the amortization of the newly acquired Wendt brand.

Capital Expenditure

The company completed a major intangible asset acquisition by paying EUR 3.8 million (INR 35.08 Cr) on March 28, 2025, for absolute ownership of the 'Wendt' brand. Other capacity expansions between FY2023 and FY2025 are being funded entirely through internal accruals.

Credit Rating & Borrowing

WIL maintains a strong credit profile with an [ICRA]AA- (Stable) rating for long-term fund-based facilities and [ICRA]A1+ for short-term non-fund based facilities. The company remains debt-free, resulting in zero interest costs.

⚙️ Operational Drivers

Capacity Expansion

The company operates 1 manufacturing facility in Hosur, 1 re-profiling unit in Thailand, and 1 insert grinding unit in Pune. Planned capacity expansions for specific product categories are underway for the FY2023-FY2025 period.

Raw Material Costs

Raw material costs are managed through bulk ordering and fixed-price contracts to mitigate inflationary pressures. In FY2023, these strategies helped improve operating margins to 27.6%.

Manufacturing Efficiency

The company leverages healthy operating leverage, which previously helped expand margins from 24.4% in FY2022 to 27.6% in FY2023.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the absolute ownership of the 'Wendt' brand (60 registrations in 40 countries), which removes previous royalty constraints and allows for independent global expansion. The company is also focusing on diversifying its revenue base away from the automotive sector into other engineering industries.

Products & Services

Super Abrasives, Grinding Machines and Accessories, and Precision Products.

Brand Portfolio

Wendt.

Market Expansion

Following the trademark assignment, the company is expanding its presence across 40 countries where the 'Wendt' brand is now registered under its absolute ownership.

Market Share & Ranking

WIL is a market leader in the Indian super abrasives industry with over four decades of track record.

Strategic Alliances

WIL is a joint venture between Carborundum Universal Limited (CUMI) and Wendt GmbH (3M/Winterthur). Wendt GmbH is currently in the process of divesting its 37.5% stake.

🌍 External Factors

Industry Trends

The abrasives industry is evolving toward high-precision grinding solutions. WIL is positioning itself by moving beyond the cyclical automotive sector into more stable engineering segments.

Competitive Landscape

The industry is highly fragmented with a large number of players and faces significant competition from low-cost imports.

Competitive Moat

WIL's moat is built on its 40-year market leadership, strong parentage (CUMI), and now, absolute global ownership of its brand, which provides a durable competitive advantage over fragmented local players.

Macro Economic Sensitivity

WIL is sensitive to the industrial capex cycle and general economic activity, particularly in the automotive and steel sectors.

Consumer Behavior

Not applicable as the company operates in the B2B industrial segment.

Geopolitical Risks

Volatile geopolitical situations in Eastern Europe and the UK have led to delayed orders and a 5% drop in export revenue in the most recent quarter.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards and international trademark laws following the brand assignment agreement with Wendt GmbH.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of Wendt GmbH's divestment of its 37.5% stake and how the reclassification of shareholders will affect future technical collaborations.

Geographic Concentration Risk

Approximately 78% of revenue is concentrated in the Indian domestic market, exposing the company to local economic fluctuations.

Third Party Dependencies

The company remains dependent on Wendt GmbH for certain service and material contracts through FY2026.

Technology Obsolescence Risk

The company mitigates technology risks by maintaining a market-leading position in super abrasives, which are essential for high-precision industrial manufacturing.

Credit & Counterparty Risk

The company maintains a reputed client profile and a robust capital structure, indicating low credit risk from counterparties.