This article first appeared on GuruFocus .
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Quarterly Revenue:INR 1,475 crores, up 20% year-on-year from INR 1,234 crores.
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Annual Revenue:INR 5,183 crores, a 17% increase from INR 4,429 crores the previous year.
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Quarterly EBITDA with Other Income:INR 152.52 crores, highest ever for a single quarter.
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Annual EBITDA with Other Income:INR 523 crores, highest in company history.
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Profit After Tax (PAT):INR 202 crores, slightly lower due to higher depreciation costs of INR 28 crores.
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EBITDA per Wheel:INR 260-262, flat year-on-year.
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Alloy Wheel Segment Growth:30% in value, contributing 36% of total revenue.
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Tractor Segment Growth:Approximately 19% growth.
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Commercial Vehicle Segment Growth:10% growth.
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Export Revenue Decline:19% decrease due to tariffs.
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Projected Export Revenue:INR 600 crores for the current financial year.
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Capital Expansion:CapEx of INR 500 crores for aluminum wheels and knuckles projects.
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Projected PAT Growth:15% to 20% for the upcoming year.
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Release Date: June 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Steel Strips Wheels Ltd ( BOM:513262 ) achieved its highest ever revenue, registering a 17% year-on-year growth.
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The company reported a 20% year-on-year revenue growth for the current quarter, driven by strong domestic demand and GST cuts.
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EBITDA for the quarter reached INR 152.52 crores, the highest ever for a single quarter, supported by better operating leverage and higher utilization.
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The alloy wheel segment grew by 30% in value, contributing 36% to the total revenue, driven by increased demand for premium aluminum wheels.
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The company is projecting a 15% to 20% growth in profit after tax for the upcoming year, based on high capacity utilization and strong order books.
Negative Points
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The second quarter of the previous year negatively impacted momentum due to export challenges and tariffs imposed by the US.
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Exports declined by 19% due to tariffs, although the situation has improved with a level playing field now.
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The company faced manpower shortages, resulting in a loss of INR 80 crores in sales, although this issue has been resolved as of May.
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Energy costs and availability of manpower have been significant challenges, although the company has managed to gain market share.
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The profit after tax was slightly lower than the previous year due to higher depreciation costs.
Q & A Highlights
Q: What would be the mix between PV and CV in FY '26 compared to FY '25, and how do you see this mix shaping in FY '27 and FY '28? A: We are looking at a margin of INR 300 per wheel this year, which is a 10% increase from INR 272 last year. For FY '27, with the expansion in knuckles and aluminum factory in Bhuj, we expect an additional INR 700-800 crores in revenue. These are premium products with premium margins, so we anticipate a further 10% increase in margins for FY '27 and '28.
Q: Can you provide the EBITDA per wheel for Q4? A: The EBITDA per wheel for Q4 was INR 282, which exceeded expectations. This sets a strong foundation for achieving INR 300 per wheel next year.
Q: How is the trajectory looking for the 2-wheeler and 3-wheeler segments, especially with the growth in EV wheels? A: We are the #1 supplier of EV wheels for scooters and 3-wheelers, holding an 80% market share in the EV scooter space. This segment is expected to grow by 25% to 40% this year, driven by increasing demand and our unique technology.
Q: What is the expected revenue addition from the new Bhuj facility, and when will it be operational? A: The Bhuj facility is expected to add INR 700 crores to the topline at full utilization. It will be operational in Q4 of FY '27, with an expected 70% utilization in FY '28.
Q: How will the debt profile look going forward, considering the planned expansions? A: We anticipate a INR 200 crore increase in debt due to a INR 500 crore CapEx expansion. This will bring our total debt to over INR 1,000 crores, with a projected turnover of INR 6,500 crores for the next financial year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
