Steel Strips Wheels reported a 43% year-on-year increase in net profit to ₹71.5 crore for the quarter ended June 30, 2026, driven by robust operational performance and margin expansion. Revenue from operations surged 27% to ₹1,509.8 crore compared to ₹1,186.8 crore in the corresponding quarter of the previous year. The board approved the unaudited standalone and consolidated financial results at its meeting held on July 15, 2026. Subsequently, the audio recording of the Q1FY27 results conference call held on July 16, 2026, was made available on the company's website, with no unpublished price sensitive information shared during the interaction.

Q1 Financial Performance

The company's standalone results highlight significant growth across key metrics. Total income for the quarter stood at ₹1,512.74 crore, up from ₹1,189.90 crore in the same period last year. Expenses increased to ₹1,416.40 crore from ₹1,123.98 crore, primarily due to higher material costs. EBITDA improved 33% year-on-year to ₹162.3 crore, with the margin expanding by 40 basis points to 10.7%. The margin improvement reflects a favourable product mix, cost optimization initiatives, and a rising share of premium products in the portfolio. The statutory auditors conducted a limited review of the accounts for the quarter.

Profitability and Operational Highlights

Steel Strips Wheels recorded a profit before tax of ₹96.3 crore in Q1FY27, compared to ₹65.9 crore in the year-ago quarter. The tax expense for the period was ₹24.8 crore. On the operational front, the company reported that revenue growth was largely driven by strong domestic demand. The product mix continues to shift towards high-margin alloy wheels, which contributed ₹532.9 crore, or approximately 35%, of Q1 FY27 revenues. Steel wheels remained the largest contributor at ₹953.8 crore, representing roughly 63% of revenues. Aluminium knuckles generated ₹23.0 crore. The company noted that there are no reportable segments as per Ind AS 108, as the Chief Operating Decision Maker reviews operations as a whole.

Capacity Expansion and Outlook

The company is focusing on expanding its aluminium wheel and knuckle capacity. A net capex of ₹196 crore was incurred through FY26 towards incremental capacity expansion. Steel Strips Wheels expects an addition of approximately 1.2 million units in alloy wheel capacity, aiming to ramp up the total capacity to approximately 6.2 million units for FY27. Aluminium knuckle capacity is being scaled up to 11.0 lakh units in FY27E, with sales reaching approximately 0.80 lakh units in Q1 FY27.

Consolidated Results

On a consolidated basis, the company reported a net profit of ₹694.51 crore for the quarter, up from ₹472.42 crore in Q1FY26. Total consolidated income rose to ₹1,510.66 crore from ₹1,187.59 crore. The results include the financial performance of subsidiary AMW Autocomponent Limited and associate Clean Max Astria Private Limited. The board also approved the recommendation of the Audit Committee for these results.

Management Commentary

Management attributed the margin expansion to input price increases received from OEMs, operating leverage, and a favourable product mix. EBITDA per wheel for the quarter stood at ₹314, compared to ₹262 in Q1FY26. The company noted that exports began showing signs of recovery in June as tariff-related disruptions normalized, presenting a potential tailwind for coming quarters. Looking ahead, the company targets a top-line growth of 20% plus for FY27 and aims to increase EBITDA per wheel to more than ₹310. The total capex plan for the year is approximately ₹600 crore, including expansions in Bhuj and a brownfield expansion for agricultural wheels.

Steel Strips Wheels Ltd has scheduled an earnings call to discuss its financial performance. The meeting is set to take place on July 16, 2026, at 10:00 IST.

The intimation regarding the conference call was digitally signed by Kanika Sapra. The document was signed on July 10, 2026, at 10:42:56, reflecting the local time zone of +05'30'.

Earnings Call Details