SSWL - Steel Strips & Wheels Ltd Share Price

For Q3 FY 2026, Steel Strips Wheels Limited reported a revenue of Rs.1,321 crores, marking a 23% increase from Rs.1,075 crores in the same period last year. The EBITDA for the quarter was Rs.128 crores, an 8% rise compared to Rs.118 crores in the previous year. Management highlighted strong monthly sales in November and December 2025 and anticipated ongoing growth, particularly in domestic markets, driven by government reforms that have spurred consumption.

For the nine months ending FY 2026, revenue reached Rs.3,708 crores, up 16% from Rs.3,195 crores last year. Profit after tax stood at Rs.138 crores, amidst a shift in focus from high-margin exports to robust domestic demand.

Management indicated an optimistic outlook, expecting a revenue target of Rs.6,000 crores for FY 2027, with the potential for this to rise to Rs.6,500 crores if tariff issues in the U.S. are resolved. The aluminum segment has been a standout performer, contributing approximately 37% to total revenue, with expectations for continued growth supported by favorable conditions in the domestic market.

Key points highlighted included the anticipated increase in capacity for the aluminum knuckle segment from 5 lakh units to 11 lakh units by FY 2027, and a projected EBITDA per wheel increase to Rs.270 in Q4 FY 2026. The company is also expanding its facilities in Bhuj to enhance aluminum wheel production, with an expected CAPEX of around Rs.420 crores for FY 2027.

Given these developments, management remains confident in maintaining business momentum, supported by strong order visibility, particularly in the tractor, aluminum wheel, and commercial vehicle segments. The diversified presence across automotive markets positions the company to adapt to ongoing fluctuations in export markets.

Here are the summarized major questions and their detailed responses based on the Q&A section of the earnings transcript:

Question 1: How do you see the increase in export realizations, and how smoothly can you pass on increases in raw material prices?

Dheeraj Garg: I want to clarify that raw material costs are a pass-through. Every three months, aluminum prices are set based on previous rates, so there's a lag but it averages out. While exports have lagged, domestic markets are doing well. We remain optimistic as we see growth across all segments, especially aluminum wheels. Despite the negative impact of U.S. tariffs on our steel business, we maintain a bullish outlook for the coming quarters, projecting a turnover of Rs. 1,475 crores.

Question 2: What is your total CAPEX for FY 2027 concerning the expansion in alloy wheels and aluminum knuckles?

Dheeraj Garg: The total expansion cost will be around Rs. 420 crores for the new facility in Bhuj. Our maintenance CAPEX will be about Rs. 40 crores, totaling approximately Rs. 460 crores for FY 2027. This investment targets both domestic and export markets, enabling us to capture a significant share in the global aluminum wheels segment.

Question 3: What is your average cost of debt?

Pranav Jain: Our overall debt cost is around 8% to 8.5%. There are factoring lines included in the financial statements which affect some of the numbers you see. This average reflects our total borrowing costs and is aligned with current market rates.

Question 4: What is the expected peak revenue from the new facility in Bhuj?

Dheeraj Garg: We anticipate peak revenue of about Rs. 600 crores from the aluminum wheels business and Rs. 200 crores from the knuckles segment. This will significantly boost our production capacity and revenue stream in both domestic and export markets, especially in Europe.

Question 5: What is your projection for EBITDA per wheel going forward?

Dheeraj Garg: Currently, our EBITDA per wheel is Rs. 260. We aim for this to reach Rs. 270 by the end of this financial year, and we project further improvements next year as we optimize our operational efficiencies. We are still navigating the impact of external factors like tariffs but are optimistic about achieving Rs. 300 in the future.

These answers capture key points while adhering to the character limit requirement.