Steel Strips Wheels Reports 15% Revenue Growth in Q1, Eyes European Expansion
Steel Strips Wheels Limited (SSWL) reported strong Q1 results with 15% year-on-year revenue growth. Profit after tax increased 8% to INR 50.00 crores, while EBITDA grew 6.1% to INR 125.00 crores. Export revenue surged 30% to INR 160.00 crores. The alloy wheel segment's contribution to revenue rose from 29% to 35%. SSWL secured nominations worth INR 300.00 crores from European OEMs for steel wheels and plans to establish a wholly-owned subsidiary in the EU. The company's new aluminum knuckle segment generated INR 13.20 crores in Q1. SSWL is expanding alloy wheel and knuckle capacities, aiming for 65,000-75,000 knuckles per month by Q4 FY2027. The company expects to maintain EBITDA per wheel at current levels and projects year-end debt between INR 850.00-900.00 crores.
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Steel Strips Wheels Limited (SSWL) reported strong financial results for the first quarter, with revenue growing 15% year-on-year. The company's performance was driven by robust growth in exports and the alloy wheel segment, while also securing new business opportunities in Europe.
Financial Highlights
- Revenue increased by 15% year-on-year
- Profit after tax rose 8% from INR 46.00 crores to INR 50.00 crores
- EBITDA stood at INR 125.00 crores, marking a 6.1% year-on-year growth
- Export revenue surged 30% from INR 123.00 crores to INR 160.00 crores
Segment Performance
The alloy wheel segment emerged as a standout performer, with its contribution to overall revenue increasing from 29% to 35% year-on-year. The company expects this upward trend to continue in the coming quarters.
The tractor segment also saw decent growth, primarily due to favorable monsoon conditions and sustained export momentum. However, the commercial vehicle (CV) segment faced challenges due to regulatory changes requiring AC cabins in all newly manufactured medium and heavy commercial vehicles from October 1, 2025.
Export Strategy and European Expansion
SSWL is implementing a derisking strategy to reduce its dependence on the U.S. market, focusing on Europe and South America. The company's U.S. export share has already been reduced from 70% to 52%.
In a significant development, SSWL announced receiving nominations worth INR 300.00 crores from European OEMs for steel wheels. The company is also in the process of incorporating a wholly-owned subsidiary in the European Union to cater to the growing demand in the region.
Aluminum Knuckle Segment
The company's new aluminum knuckle segment, which commenced commercialization in the third quarter of last year, sold approximately 50,000 knuckles to multiple OEMs, generating revenue of INR 13.20 crores in Q1.
Future Outlook
Despite uncertainties surrounding U.S. tariffs, SSWL remains optimistic about its growth prospects. The company is expanding its alloy wheel and knuckle capacities, with plans to reach a production pace of 65,000 to 75,000 knuckles per month by January-March 2027.
SSWL expects to maintain its EBITDA per wheel at current levels, with potential for improvement as the alloy wheel and knuckle segments gain more prominence in the overall revenue mix.
The company anticipates closing the fiscal year with a combined long-term and short-term debt in the range of INR 850.00 crores to INR 900.00 crores, with a cost of debt between 7% to 7.5%.
As Steel Strips Wheels Limited continues to diversify its product portfolio and expand its global footprint, the company appears well-positioned to capitalize on emerging opportunities in the automotive wheel market, particularly in Europe and South America.
Historical Stock Returns for Steel Strips Wheels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.04% | -4.16% | +12.59% | +23.33% | +8.51% | +463.12% |
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