Steel Strips Wheels Limited

Steel Strips Wheels Limited delivered a robust financial performance in Q1 FY27. Revenue from Operations surged by 27.2% year-on-year to ₹1,509.8 crores. This growth was primarily fueled by strong domestic demand. The company also achieved significant margin expansion, with EBITDA rising 33.0% YoY to ₹162.3 crores, and the EBITDA margin improving by 40 basis points to 10.7%. Profit After Tax (PAT) demonstrated even stronger growth, increasing by 43.3% YoY to ₹71.5 crores, with the PAT margin reaching 4.7%.

The company's revenue mix in Q1 FY27 continued to be dominated by Steel Wheels, contributing ₹953.8 crores, or approximately 63% of total revenues. Alloy Wheels accounted for ₹532.9 crores, representing about 35% of revenues, reflecting the shift towards high-margin accretive segments. The Aluminium Knuckles segment, a key diversification effort, generated ₹23.0 crores in revenue, making up 2% of the total. This product diversification is considered an important lever for de-risking the business and enhancing shareholder value.

SSWL is actively expanding its capacity, particularly in the Alloy Wheels segment. The company expects to add approximately 1.2 million units of Alloy Wheel capacity, aiming to ramp up the total capacity to ~6.2 million units for FY27. In Q1 FY27, the operational capacity for Steel Wheels was 207 Lakh units with 82% utilization, while Alloy Wheels had a capacity of 50 Lakh units, also utilized at 82%. The Aluminium Knuckles capacity is also being expanded, with 0.80 lakh units sold in Q1 FY27.

SSWL maintains strong strategic partnerships with key industry players like Tata Steel Limited and Nippon Steel Corporation, which provide flexibility in supply chain management, support for new grade developments, and international expertise in steel quality. The company serves a wide range of prominent clientele across various vehicle segments, including Maruti Suzuki, Mahindra, Hyundai, Tata Motors, Ashok Leyland, and Renault, demonstrating its leadership in both Steel and Alloy Wheels categories.

Export revenues for Q1 FY27 stood at ₹127 crores, a decrease from ₹160 crores in Q1 FY26. However, management noted that while the reported numbers were primarily driven by domestic demand, exports began showing signs of recovery in June. This recovery is attributed to the normalization of tariff-related disruptions, suggesting a potential tailwind for export performance in the upcoming quarters.