Steel Strips Wheels Limited (BSE: 513262, NSE: SSWL) announced comprehensive FY 2025-26 results alongside its 40th AGM notice and assured Business Responsibility & Sustainability Report (BRSR).
Financial Performance
The company reported standalone total income of Rs. 5,19,467.31 lakhs, representing a 16.93% increase from the previous year. However, profit after tax decreased by 3.75% to Rs. 20,208.73 lakhs due to higher depreciation and interest costs. Operational performance showed wheel rim sales growing 3.17% to 196.96 lakh units, while aluminum steering knuckle sales surged dramatically to 257,147 units from 46,952 units in FY25. Consolidated performance mirrored standalone trends with total income up 17.01% to Rs. 5,18,596.67 lakhs.
Dividend and Corporate Actions
The Board recommended a final dividend of Rs. 1.50 per equity share (150%) for FY 2025-26, subject to shareholder approval at the 40th AGM scheduled for September 30, 2026. The dividend represents 11.67% of standalone net profit and will be paid to shareholders on the record date of September 23, 2026. The company also allotted 251,100 equity shares under its ESOP 2021 scheme during the year.
Expansion and Strategic Initiatives
The Board approved setting up new manufacturing units for alloy wheels (1.2 million units annual capacity) and aluminum steering knuckles (0.6 million units annual capacity) at Bhuj, Gujarat. The company entered into a tripartite agreement with Chinese partners Liuzhou Arays Technology and Hainan Jihoo Import & Export for machinery and technology transfer for the new alloy wheels facility.
ESG and Sustainability Reporting
The assured BRSR report disclosed comprehensive ESG metrics including Scope 1 & 2 emissions of 1,52,434 tCO2e and significant renewable energy achievements with 76.83% renewable electricity consumption at the Chennai plant through solar and wind power PPAs. The company maintained strong waste management with 98.7% recycling rate and implemented zero liquid discharge at all plants. CSR expenditure increased to Rs. 634.95 lakhs, focusing on construction/acquisition of assets and community development.
Governance and Management Changes
Key management changes included the resignation of Deputy Managing Director Mohan Joshi due to health reasons and the appointment of Rahul Kumar as Chief Financial Officer. The AGM will feature votes on re-appointing directors Dheeraj Garg and Sanjay Garg, along with special resolutions to enhance the company's borrowing limit to INR 3500 Crore. Auditors provided unmodified opinions on both standalone and consolidated financial statements, with no qualifications or adverse remarks.
Ownership and Capital Structure
Promoter shareholding remained strong at 61.14%, with Dheeraj Garg holding 29.52% and institutional investors including Tata Steel Limited (6.92%) and Sumitomo Metal Industries Limited (5.41%). Property, plant and equipment increased to Rs. 343,457.29 lakhs with significant additions in plant and machinery, while capital work in progress decreased to Rs. 15,447.65 lakhs.
The company maintained its credit rating of 'IND AA-/Stable' for bank facilities and demonstrated robust operational performance despite global economic challenges, positioning itself for continued growth through strategic expansion and sustainability initiatives.