Company and Document Details

Company Overview

Steel Strips Wheels Limited (SSWL) is a leader in designing and manufacturing automotive wheels in both steel and alloy categories. The company aspires to be the "Preferred Global Brand of Wheel Solution provider." SSWL has strategic partnerships with Tata Steel Limited (6.9% stake through strategic alliance since January 2008) and Nippon Steel Corporation (5.4% stake through strategic alliance since December 2010, formerly Sumitomo Metal Industries).

Product Portfolio and Q1 FY27 Revenue Mix

  • Steel Wheels: ₹953.8 crores (63% of total revenue)
  • Alloy Wheels: ₹532.9 crores (35% of total revenue)
  • Aluminium Knuckles: ₹23.0 crores (2% of total revenue)

Domestic Market Share (as presented)

Passenger Vehicle Customers:

  • Maruti Suzuki: 36%
  • Hyundai: 25%
  • Mahindra: 56%
  • Honda: 96%
  • MG Motors: 100%
  • Kia: 30%

MHCV Customers:

  • Ashok Leyland: 64%
  • TATA Motors: 58%

Tractor OTR Customers:

  • Mahindra: 56%
  • Sonalika: 48%
  • Escorts: 60%
  • JCB: 62%
  • New Holland: 31%

2-3 Wheeler Customers:

  • HMSI: 39%
  • Suzuki Scooters: 96%
  • Mahindra 3W: 81%

Aluminium Knuckles Business Update

The company is currently working with 2 leading OEMs for aluminium knuckles and plans to increase customer base as capacity expands. Product diversification is noted as an important lever for de-risking the business and improving shareholder value.

Growth Drivers Identified

1. Sales Mix Shift: Toward high margin accretive segments - alloy wheels and exports

2. Operations Optimization: Development of robotic automated operation process for operating cost rationalization

3. Diversifying into Aluminium Product Portfolio: Exploring various avenues to foray into alternate aluminium products

4. Industry Growth: Steel wheel market expected to grow at 4% p.a., alloy wheel market at 12% p.a. over next 5 years

Capital Expenditure

Net Capex of ₹196 crores was incurred through FY26 toward incremental capacity expansion, largely focused on aluminium wheels and aluminium knuckles.

Q1 FY27 Financial Performance

| Particulars (₹ in Crs) | Q1 FY27 | Q1 FY26 | Y-o-Y |

| Revenue from Operations | 1,509.8 | 1,186.8 | 27.2% |

| Cost of Materials Consumed | 1,088.8 | 818.7 | |

| Changes in Inventory | -103.4 | -47.6 | |

| Gross Profit | 524.4 | 415.7 | 26.1% |

| Gross Profit Margin | 34.7% | 35.0% | |

| Employee Cost | 120.6 | 102.4 | |

| Other Expenses | 241.6 | 191.3 | |

| EBITDA | 162.3 | 122.0 | 33.0% |

| EBITDA Margin | 10.7% | 10.3% | |

| Depreciation | 36.6 | 30.4 | |

| Other Income | 2.9 | 3.1 | |

| EBIT | 128.6 | 94.7 | 35.8% |

| EBIT Margin | 8.5% | 8.0% | |

| Finance Cost | 32.3 | 28.8 | |

| Profit before Tax | 96.3 | 65.9 | 46.2% |

| Profit before Tax Margin | 6.4% | 5.6% | |

| Tax | 24.8 | 16.0 | |

| Prior Period Adjustment/Deferred Tax | 0.0 | 0.0 | |

| Profit After Tax | 71.5 | 49.9 | 43.3% |

| Profit After Tax Margin | 4.7% | 4.2% | |

Key Financial Highlights

  • Revenue growth of 27.2% YoY driven largely by strong domestic demand
  • EBITDA growth of 33.0% YoY with margin expansion of 40 bps to 10.7%
  • PAT growth of 43.3% YoY with margin improvement to 4.7%
  • Margin improvement reflects favorable product mix, cost optimization initiatives, and rising share of premium products
  • Exports began showing signs of recovery in June as tariff-related disruptions normalized

Historical Financial Performance (FY22-FY26)

Profit & Loss Trend (₹ in crores):

| Particulars | FY26 | FY25 | FY24 | FY23 | FY22 |

| Revenue | 5,189.2 | 4,423.8 | 4,358.8 | 4,036.3 | 3,558.8 |

| Gross Profit | 1,784.3 | 1,570.8 | 1,521.0 | 1,376.9 | 1,372.8 |

| Gross Margin | 34.4% | 35.5% | 34.9% | 34.1% | 38.6% |

| EBITDA | 511.1 | 486.8 | 465.2 | 442.8 | 452.8 |

| EBITDA Margin | 9.9% | 11.0% | 10.7% | 11.0% | 12.7% |

| PAT | 202.1 | 210.0 | 219.9 | 193.8 | 205.5 |

| PAT Margin | 3.9% | 4.7% | 5.0% | 4.8% | 5.8% |

| EPS (₹) | 12.86 | 13.38 | 14.04 | 12.39 | 13.16 |

Balance Sheet Position (FY26)

  • Total Assets: ₹3,816.7 crores
  • Non-Current Assets: ₹2,045.9 crores (Property Plant & Equipment: ₹1,821.9 crores, CWIP: ₹141.7 crores)
  • Current Assets: ₹1,770.9 crores (Inventories: ₹952.5 crores, Trade Receivables: ₹609.0 crores)
  • Total Equity: ₹1,734.8 crores
  • Non-Current Liabilities: ₹459.4 crores
  • Current Liabilities: ₹1,622.5 crores

Cash Flow Snapshot (FY26)

  • Net Cash from Operating Activities: ₹331 crores
  • Net Cash from Investing Activities: -₹184 crores
  • Net Cash from Financing Activities: -₹144 crores
  • Net Increase in Cash: ₹3 crores