The agency has affirmed the company’s short-term rating at ‘IND A1’.

India Ratings and Research stated that the upgrade reflects a notable improvement in WIL’s EBITDA margins, and thus credit metrics at the consolidated level during FY25–9MFY26, supported by sustained revenue diversification and working capital efficiencies.

The agency expects this positive momentum to continue over the near to medium term, driven by higher contributions from margin-accretive segments and ongoing cost-optimisation initiatives undertaken by the company.

India Ratings further said that a significant improvement in the profitability along with improving profitability from newer segments, while maintaining the gross working capital cycle, and net adjusted leverage reducing below 2.5x, all on a consolidated and sustained basis, could lead to a positive rating action.

However, a decline in the profitability margins and/or a stretch in the gross working capital cycle, leading to net adjusted leverage exceeding 3.5x, and deterioration in the liquidity position, could lead to a negative rating action.

Wheels India manufactures steel and aluminium wheel rims across the automotive (except two-wheeler), tractor and earth mover segments. It caters to both the domestic and overseas markets. The company also has a presence in air suspension systems for luxury buses in India, supplies fabricated and machined parts for windmills, and produces bogie frame and bogie bolsters for the Indian Railways.

The company had reported 44.05% increase in consolidated net profit to Rs 36.07 crore on a 21.92% increase in revenue to Rs 1,371.45 crore in Q3 FY26 as compared with Q3 FY25.

The scrip had declined 2.03% to end at Rs 899.25 on the BSE on Friday.