Steel Strips Wheels Limited demonstrated robust revenue growth in the nine months ended FY26, achieving ₹3,708.20 crores compared to ₹3,195.10 crores in the corresponding period of the previous year, marking a 16% year-on-year increase. The company's quarterly performance was even more impressive, with Q3 FY26 revenues reaching ₹1,320.80 crores, up 23% from ₹1,074.70 crores in Q3 FY25.

Financial Performance Overview

The company's financial metrics for 9M FY26 reflect mixed results despite strong revenue growth:

Quarterly performance showed similar trends with Q3 FY26 EBITDA at ₹127.80 crores versus ₹118.30 crores in Q3 FY25, though margins compressed to 9.70% from 11.00%.

Product Portfolio and Revenue Mix

Steel Strips Wheels operates across three main product categories with distinct revenue contributions in 9M FY26:

The company's steel wheels segment serves robust applications suitable for off-road and heavy-duty use, while alloy wheels cater to premium passenger vehicles with enhanced aesthetics and performance characteristics. The aluminium knuckles segment, though smaller, represents a strategic diversification contributing to weight reduction and improved fuel efficiency in vehicles.

Operational Capacity and Utilization

The company maintains significant manufacturing capacity across its product lines. Steel wheel capacity stands at 210 lakh units for FY26E with utilization rates of 75% in 9M FY26. Alloy wheel capacity reached 50 lakh units with 64% utilization during the same period. The company plans phased addition of 5 lakh steel wheel capacity by FY26.

Export Performance and Market Challenges

Exports faced significant headwinds during the reporting period, with a 31% decline in Q3 FY26 and 11% decrease on a nine-month basis. The company generated ₹103 crores from alloy wheel exports, representing 1.89 lakh units in 9M FY26. Management attributed margin pressures to the export slowdown amid global uncertainties and increased raw material prices, as exports typically contribute higher margins to the business.

Strategic Developments

Steel Strips Wheels completed the acquisition of AMW Autocomponent Limited at Bhuj, Gujarat in 2024, adding 7 million steel wheel capacity. The company invested approximately ₹150 crores in FY26 towards incremental capacity building for aluminium wheels and aluminium knuckles. The aluminium knuckles segment shows promising growth trajectory with capacity scaling from 3.5 lakh units in Q3 FY26 to projected 11 lakh units by FY27E.

Financial Health Indicators

The company maintains a consistent dividend policy, declaring 125% dividend for FY25, continuing its track record of regular shareholder returns. Long-term debt management and return ratios demonstrate stable financial health, though specific current period metrics were not detailed in the available data. The company's diversified product portfolio and capacity expansion initiatives position it for sustained growth despite near-term margin pressures from raw material costs and export market volatility.

Steel Strips Wheels Limited has reported its Q3 financial results, showing a decline in net profit compared to the same quarter in the previous year. The automotive component manufacturer posted a net profit of ₹49.20 crores for the quarter, down from ₹51.80 crores recorded in the corresponding period last year.

Financial Performance Overview

The company's Q3 results demonstrate a year-on-year decrease in profitability, with net profit declining by ₹2.60 crores. This translates to a 5.02% drop in bottom line performance compared to the same quarter in the previous fiscal year.

Quarterly Results Analysis

The latest quarterly performance indicates that Steel Strips Wheels faced headwinds in maintaining its previous year's profitability levels. The company, which operates in the automotive components sector, experienced a moderate decline in its net profit margins during this reporting period.

The year-on-year comparison reveals that while the company maintained profitability, it was unable to match the stronger performance achieved in the corresponding quarter of the previous fiscal year. The ₹2.60 crore decrease in net profit represents the difference between the current quarter's performance and the benchmark set in the same period last year.