Financial Performance Highlights

Q2 FY27 (Standalone):

  • Revenue: ₹1,930 crore, up 61% Year-over-Year (YoY)
  • EBITDA (including other income): ₹237 crore, up 107% YoY
  • EBITDA Margin: 12.3% (vs. 9.6% in Q2 FY26)
  • EBITDA per wheel: ₹404 (vs. ₹242 in Q2 FY26)
  • Profit After Tax (PAT): ₹119 crore, up 209% YoY
  • PAT Margin: 6.2% (vs. 3.2% in Q2 FY26)

H1 FY27 (Standalone):

  • Revenue: ₹3,440 crore (vs. ₹2,387 crore in H1 FY26), up 44% YoY
  • EBITDA (including other income): ₹403 crore, up 68% YoY
  • EBITDA Margin: 11.7% (vs. 10.1% in H1 FY26)
  • EBITDA per wheel: ₹362
  • PAT: ₹190 crore, up 115% YoY

Dividend Declaration

The Board approved an interim dividend of ₹1.50 per equity share.

Segment-Wise Performance

Alloy Wheels:

  • Contributed 45% of total revenue in Q2 and 42% in H1.
  • Volumes: ~12 lakh units in Q2; ~23 lakh units in H1.
  • Growth driven by premiumization in passenger vehicles and rising EV share in India.
  • The company holds a 64% market share (ex-Maruti).
  • Capacity was debottlenecked by 10% in October 2026, taking annualized capacity to 5.4 million units.

Aluminum Knuckle Business:

  • Progressing as expected; focused on securing customer approvals and scaling commercial supplies.

Commercial Vehicles (CV):

  • Recorded the highest growth among all segments.
  • Demand supported by sustained OEM offtake, replacement demand, and infrastructure-led activity.

Tractor Segment:

  • Market share improved from 43% to 45%.
  • Demand supported by farm mechanization, healthy rural economic activity, and preference for higher horsepower tractors.

Steel Wheel Segment:

  • Increased demand for high vent hole wheels (steel wheels resembling aluminum wheels at lower cost).

Exports:

  • Q2 Export Revenue: ₹187 crore, up 69% YoY.
  • H1 Export Revenue: ₹314 crore, up 16% YoY.
  • Diversification across Europe, Latin America, and Asia, alongside presence in the US.
  • The company is on track to exceed its FY27 export target of ₹600 crore and targets ₹1,500 crore in exports within three years.

Expansion and Capex Plans

Bhuj Facility:

  • Aluminum Wheel Plant: Adds 1.2 million units of annual capacity, taking total aluminum wheel capacity beyond 6.2 million. Commercial production expected to start in early April 2027.
  • Aluminum Knuckle Facility: Annual capacity of 1.1 million units. Commercial production expected in Q4 FY27.

Dappar Facility:

  • ₹120 crore allocated to increase tractor wheel capacity by 0.5 million sets.

Sambhajinagar (Aurangabad) Greenfield Project:

  • Board approved a new manufacturing facility for alloy wheels, steel wheels (for passenger cars and OTR applications), and a hot stamping line for body structural parts.
  • Total project outlay: ₹1,400 crore, spread over 60 months.
  • Funding: Mix of debt, internal accruals, and potential strategic investments.
  • Expected operational by Q4 CY27 (calendar year 2027).
  • Targeted turnover: ~₹400 crore from the hot stamping line.

Total FY27 Capex: Over ₹600 crore, with ₹420 crore for Bhuj, ₹120 crore for Dappar, and ~₹70 crore for machinery replacement and automation.

Operational and Strategic Updates

  • The company emphasized its focus on operational excellence, premium and aluminum portfolio expansion, export growth, customer relationships, and investments in automation and AI.
  • Management highlighted that SSWL is the lowest-cost producer of aluminum and steel wheels globally (ex-China).
  • The new Sambhajinagar facility is expected to be 25% more productive and efficient than existing facilities.

Guidance and Outlook

  • At the start of FY27, the company guided for top-line growth of over 20% and EBITDA per wheel of more than ₹310.
  • H1 performance exceeded both targets.
  • Management expressed confidence in exceeding Q2 performance in the remaining quarters, based on strong demand, export recovery, and potential benefits from a new US-India trade deal.
  • The company expects ROCE to remain above 24%, with the new investments likely to improve this further.

Raw Material Price Pass-Through

  • The company received ₹183 crore in supplementary invoicing for raw material price changes in H1 (₹140 crore in Q2).
  • Management clarified that this is a pass-through mechanism with no impact on EBITDA or EBITDA per wheel.