Q2 FY27 · NSE: SSWL

Steel Strips Wheels

Results filed 23 October 2026 · Market cap ₹7,763 crore · PE 25.5

GrowthGuidance raisedTranscript read

Revenue: +60.8%; on a year ago
EBITDA: +111.6%; on a year ago
Profit to shareholders: +229.3%; on a year ago
EBITDA margin: 12.2%; +1.4 pts on last quarter

Steel Strips Wheels reported strong Q2 FY27 performance with revenue growing 60.8% YoY to ₹1,930 crore and PAT rising 208.5% YoY to ₹118.8 crore, driven by richer alloy wheel mix and recovery in commercial vehicle demand. The Board approved a large ₹1,400 crore greenfield expansion at Chhatrapati Sambhajinagar over 60 months, alongside ongoing FY27 capex of over ₹600 crore across Bhuj and Dappar. Management raised outlook expectations targeting sustainable EBITDA per wheel of over ₹404, though analysts expressed scrutiny over the inclusion of ₹140 crore in retrospective supplementary billings and balance sheet debt.

Steel Strips Wheels Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	1,930	1,510	+27.8%	1,201	+60.8%
Operating profit (EBIT)	191	125	+52.9%	79.18	+140.8%
Operating margin	9.9%	8.3%	+162 bps	6.6%	+328 bps
Other income	0.77	0.84	−8.3%	0.92	−16.3%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	156	93.28	+67.4%	48.15	+224.4%
Profit to shareholders	117	69.45	+68.4%	35.52	+229.3%
Share of joint ventures' and associates' profit	0.15	0.2	−25.0%	−0.07	n.m.
Earnings per share (₹)	7.44	4.42	+68.3%	2.26	+229.2%

Source: Steel Strips Wheels Limited’s filing to NSE, 23 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

Record quarterly financial performance with revenue expanding 60.8% YoY to Rs 1,930 crore and PAT surging 208.5% YoY to Rs 118.8 crore
Source
Presentation page 5 & 8; Transcript page 2-3 (Dheeraj Garg: 'second quarter of financial year '27 was the strongest quarter in the company's history with the highest ever quarterly revenue, EBITDA and PAT')
Board approval of a massive greenfield expansion of ~Rs 1,400 crore at Chhatrapati Sambhajinagar, Maharashtra spread over 60 months
Source
Presentation page 5; Transcript page 4 (Dheeraj Garg: 'The total project outlay is estimated at about INR1,400 crores, and it's going to be spread over the next 60 months')
Sharp surge in EBITDA per wheel to INR 404 in Q2 FY27 compared to INR 242 in Q2 FY26
Source
Transcript page 2 (Dheeraj Garg: 'EBITDA per wheel rose to INR404 from INR242 same quarter last year')

Guidance

Metric	Guidance	Period
EBITDA per wheel Source Transcript page 6, 15 (Dheeraj Garg: 'EBITDA level of INR404 should be sustainable... Right. So like we can reach around INR450 - INR500. Yes, why not?')	Sustainable around INR 404 per wheel and expected to improve to INR 450-500 in FY28	FY27 & FY28
Export Revenue Source Transcript page 4, 10, 13 (Dheeraj Garg: 'remain on track to exceed our FY27 export target of INR600 crores... INR600 crores might go to INR700 crores, INR750 crores... INR1,500 crores is visible in 3 years' time')	Exceeding the FY27 target of INR 600 crores (likely reaching INR 700-750 crores) and targeting INR 1,500 crores in 3 years	FY27 & FY30
New Plant Utilization Source Transcript page 14 (Dheeraj Garg: 'we expect 100% utilization of these facilities next year... we will cross 80% for the whole financial year in these new facilities')	100% capacity utilization within 3 to 4 months of commissioning, averaging over 80% utilization for FY28	FY28
Full Year Revenue Growth Source Transcript page 4 (Dheeraj Garg: 'At the start of the year, we guided a top line growth of over 20%... Our first half performance has exceeded both')	Comfortably exceeding initial guidance of >20% top-line growth	FY27

Upward revision from initial FY27 guidance of >20% revenue growth and >INR 310 EBITDA/wheel, with management now confident of sustaining >INR 400 EBITDA/wheel and exceeding export targets (Transcript page 4, 16).

Tailwinds

Favourable product mix shift toward high-margin alloy wheels and premium applications
Source
Presentation page 5-6; Transcript page 2-3 (Dheeraj Garg: 'alloy wheel segment remained our key growth driver, contributing to about 45% of our total revenue for the quarter')
Price revisions from customers covering non-raw material cost inflation
Source
Transcript page 2 (Dheeraj Garg: 'we have received price revisions from customers for increase towards input costs other than raw material, which has further supported our margins')
Strong recovery in Commercial Vehicles and market share expansion in Tractors
Source
Transcript page 3 (Dheeraj Garg: 'Commercial Vehicles segment delivered another very strong quarter and recorded the highest growth... tractor segment performed steadily during the quarter and our market share improved from 43% to 45%')
Robust export recovery across Europe, US, Latin America, and Asia
Source
Presentation page 20; Transcript page 4 (Dheeraj Garg: 'export revenue grew 69% Y-o-Y in Q2 to reach INR187 crores... on track to exceed our FY27 export target of INR600 crores')
Organic debottlenecking in Mehsana facility delivering 10% capacity expansion without capex
Source
Transcript page 6 (Dheeraj Garg: 'we have increased our capacity by 10% in this month of October, we will cross 5 million. So it could be close to a number of 5.4 million annualized basis')

Headwinds

Global logistics challenges and elevated ocean freight rates
Source
Transcript page 8, 15 (Dheeraj Garg: 'right now, we are whiplashed with this freight market a lot... notwithstanding what's happening right now in the Hormuz')
Working capital cash outflow driven by higher receivables and inventory
Source
Presentation page 9-10 (Working capital changes absorbed negative Rs 227 cr in H1 FY27 vs negative Rs 116 cr in H1 FY26; Debtor days rose to 42 from 36)
Inability to sell alloy wheels directly into the US market due to Chinese competition
Source
Transcript page 8 (Dheeraj Garg: 'We are competing in America, but we don't supply to America... because of the Chinese competition')

New businesses and products

capacity expansion · Board approved, subject to regulatory clearances

Greenfield Manufacturing Plant at Chhatrapati Sambhajinagar (Aurangabad), Maharashtra

Expected benefit: Addition of 2.5 mn alloy wheels, 1.6 mn steel wheels (1 mn PV, 0.6 mn OTR), and hot stamping line (1.3 mn strokes p.a. generating ~Rs 400 cr turnover on Rs 170 cr capex); customer proximity cuts freight, targeting ROCE > 24%
Risks: High capital commitment requiring debt, internal accruals, and strategic partners; customer ramp-up risk
Timeline: Spread over 60 months; trial/commissioning readiness in Q1 next calendar year; commercial production of hot stamping in Q4 next calendar year
Investment: ~INR 1,400 crores

Source

Presentation page 5; Transcript page 4, 6, 8-11, 14-16 (Dheeraj Garg)

capacity expansion · Under execution, progressing as planned

Bhuj Plant Capacity Expansion (AMW Auto Components)

Expected benefit: Addition of 1.2 mn annual alloy wheel capacity (taking total capacity to 6.2+ mn) and 1.1 mn knuckles annual capacity; targeted at 80% utilization in FY28
Risks: Ramp-up and customer approval timelines
Timeline: Knuckles commercial production in Q4 FY27; aluminum wheels by early April FY28
Investment: INR 420 crores (part of FY27 Rs 600+ cr total capex)

Source

Presentation page 16; Transcript page 4, 13-14 (Dheeraj Garg)

capacity expansion · Ongoing

Dappar Tractor Wheel Expansion

Expected benefit: Increases tractor wheel capacity by ~0.5 million sets to cater to strong tractor OEM demand
Risks: Cyclicality in domestic tractor industry
Timeline: FY27
Investment: INR 120 crores

Source

Transcript page 4 (Dheeraj Garg)

Things to check

Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Significant revenue boost from retrospective supplementary price adjustments
Source
Presentation page 5, 6; Transcript page 5 (Q2 revenue includes ~Rs 140 cr and H1 includes ~Rs 183 cr of supplementary sales on account of past raw material revisions)
Substantial capital commitment on an already leveraged balance sheet
Source
Presentation page 8, 24; Transcript page 4, 6 (Rs 1,400 cr capex commitment over 5 years plus Rs 600+ cr FY27 capex against total borrowings of Rs 911.2 cr as of Sep-26)
Deteriorating working capital cash flow with rising debtor days
Source
Presentation page 9, 33 (Debtor days increased from 36 in Mar-26 to 42 in H1 FY27; operating cash flow weighed down by Rs 227 cr working capital blockage in H1)

How the call went

Management provided a confident and detail-rich narrative on growth and capex, but exhibited clear irritation and defensiveness when analysts pressed on the sustainability of unit margins and potential distortion from supplementary billings.

Specific or vague: Strong operational specifics regarding capacity expansions, segment volumes, and export targets, but lacked breakdown on segment EBITDA and capex financial models.
Candour: Management was extremely candid and bullish on volume demand, but reacted defensively when asked about the retrospective supplementary billing impact and project IRRs.
The hard questions: Analysts persistently questioned whether supplementary sales of Rs 140 cr artificially aided Q2 EBITDA per wheel, questioned the sustainability of INR 404/wheel, and challenged the incremental ROCE of the Rs 1,400 cr capex.

What analysts pressed on

Whether the sharp surge in EBITDA per wheel was distorted by supplementary retrospective billing
Feasibility and incremental return (ROCE/IRR) on the massive INR 1,400 cr Sambhajinagar capex amidst elevated company debt
Sustainability of CV and tractor wheel demand if peak volume cycles taper off

Answers that sidestepped

Refused to share project IRR for the Sambhajinagar expansion, deflecting with general ROCE comments ('see, you're trying to put numbers in my mouth. I don't want to reveal my numbers... there are many things I cannot share with you')
Declined to name specific strategic partners funding the Sambhajinagar capex beyond describing them as existing commodity partners
Declined to give exact segment EBITDA per wheel split between steel and aluminium ('I can't reveal to you the exact numbers in each segment')

Numbers against the story

Management attributes the record performance entirely to operational efficiencies, export growth, and alloy wheel volume gains, emphasizing that the Rs 140 crore Q2 supplementary billing had zero impact on EBITDA. However, financial statements show that gross margin actually contracted by 250 bps YoY in Q2 FY27 (from 35.5% to 33.0%) and by 150 bps in H1 FY27, revealing that operating margin expansion (up 290 bps YoY to 12.2%) was driven by fixed-cost operating leverage on other expenses and employee costs over a top line inflated by raw material pass-through billings, rather than expansion in unit gross spread.

Sources

Concall transcript · filed 30-Oct-2026
Investor presentation · filed Oct
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.