This article first appeared on GuruFocus .
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Revenue (Q3 FY26):INR 1,321 crores, up 23% from INR 1,075 crores in Q3 FY25.
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EBITDA (Q3 FY26):INR 128 crores, an 8% increase from INR 118 crores in Q3 FY25.
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Revenue (9 months FY26):INR 3,708 crores, a 16% increase from INR 3,195 crores in the same period last year.
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EBITDA Growth (9 months FY26):3% growth, impacted by a decline in high-margin export segment.
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Profit After Tax (9 months FY26):INR 138 crores.
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Alloy Wheel Contribution:37% of total revenue and 20% in volume terms.
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Aluminum Knuckle Segment Revenue:Approximate INR 54 crores, with near full capacity utilization.
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Export Revenue from Europe:Accounts for over 58% of export revenue.
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Release Date: January 23, 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 ) reported a 23% increase in revenue for Q3 FY26, reaching INR1,321 crores compared to INR1,075 crores in the same period last year.
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The company achieved record monthly sales in November and December, demonstrating strong domestic demand and resilience in its diversified approach.
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The aluminum segment has been a standout performer, contributing approximately 37% to total revenue and 20% in volume terms, with expectations for continued growth.
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The company is expanding its aluminum knuckle segment, with plans to reach an annual capacity of 5 lakh units by the end of the year and 11 lakh units next year.
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Steel Strips Wheels Ltd ( BOM:513262 ) is confident in maintaining business momentum, supported by healthy order visibility across key domestic segments such as tractors, aluminum wheels, and commercial vehicles.
Negative Points
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The export market, particularly in the US, remains sluggish due to ongoing tariff-related uncertainties, impacting high-margin export segments.
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EBITDA growth for the nine months was only 3%, largely due to a decline in high-margin export segments affected by US tariffs.
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Despite a higher alloy wheel mix and substantial top-line growth, EBITDA margins appear suppressed below 10%, compared to historical peaks of 12-13%.
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The company's steel business for exports has been compromised by INR300 crores to INR400 crores due to the American market, affecting overall profitability.
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The company faces challenges in maintaining profitability per wheel due to increased raw material prices and competitive pressures in the aluminum segment.
Q & A Highlights
Q: Congratulations on the record turnover. Can you explain the sustainability of export realizations and how you manage raw material price increases? A: Raw material costs are a pass-through, adjusted quarterly based on previous rates. Export realizations have increased due to high-value sales in Europe, which we expect to sustain. Domestic segments are performing well, but exports to the US are affected by tariffs. We anticipate a resolution in the coming months. (Unidentified Company Representative)
Q: What is the total CapEx planned for FY27, including the new alloy wheels and aluminum knuckle facilities? A: The total CapEx for the new facilities is INR420 crores, with an additional INR40 crores for maintenance. This investment targets both domestic and export markets, particularly Europe. We are expanding our product range and customer base. (Unidentified Company Representative)
Q: What is your current cost of debt, and how does it relate to your interest expenses? A: Our average cost of debt is around 8% to 8.5%. We also use factoring lines, which are adjusted against debtors in the balance sheet. (Dheeraj Garg, Managing Director)
Q: Can you clarify the capacity expansion at the Bhuj plant and its expected revenue contribution? A: The Bhuj plant will add 1.2 million units for aluminum wheels and 0.6 million for knuckles. We expect peak revenue of INR600-700 crores from wheels and INR200 crores from knuckles. The facility will be funded through a mix of debt and internal accruals. (Unidentified Company Representative)
Q: How do you see the future of your EBITDA margins, given the current product mix and market conditions? A: We aim to achieve INR270 per wheel in the fourth quarter and expect further improvements next year. The growth is driven by high-value segments like aluminum wheels, trucks, and tractors. We anticipate a 20% revenue growth next year, potentially reaching INR6,000 crores. (Unidentified Company Representative)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
