Steel Strips Wheels Limited (SSWL) announced its financial results for the third quarter of FY2026, reporting a significant 23% year-on-year increase in revenue, reaching ₹1,321 crore compared to ₹1,075 crore in the same period last year. This growth was driven by record monthly sales in November and December, highlighting the company's resilience and diversified approach across the auto industry, despite a sluggish export market. The company's EBITDA for the quarter stood at ₹128 crore, an 8% increase from ₹118 crore in Q3 FY2025, attributed to a focus on premiumization, operational excellence, and strong OEM partnerships. For the nine-month period of FY2026, revenue grew by 16% to ₹3,708 crore from ₹3,195 crore in the corresponding period last year. This growth was primarily fueled by increased domestic demand, supported by government reforms boosting auto consumption. However, EBITDA for the nine months saw a marginal 3% growth, impacted by a decline in the high-margin export segment due to U.S. tariff situations. Profit after tax for the nine months was ₹138 crore. The aluminum segment has been a strong performer, contributing approximately 37% to total revenue and 20% in volume terms for alloy wheels, with expectations of further growth. The aluminum knuckle segment is expanding beyond EVs into ICE vehicles, with plans to scale capacity to 11 lakh units next year. The two- to three-wheeler business also showed robust performance, benefiting from GST 2.0 reforms and a strong festive season. On the export front, while the U.S. market remains subdued, Europe has emerged as a key growth market, now accounting for over 58% of export revenue. The company is confident in maintaining business momentum, supported by strong order visibility in domestic segments like tractors, aluminum wheels, and commercial vehicles. Looking ahead, SSWL is undertaking a CAPEX of approximately ₹420 crore for a new facility in Bhuj to manufacture aluminum wheels and knuckles, with an additional ₹40 crore for maintenance CAPEX. This investment is expected to enhance its global reach. The company anticipates FY2027 revenue to reach ₹6,000 crore, with a potential to hit ₹6,500 crore if U.S. tariffs are resolved. The EBITDA per wheel has improved to approximately ₹260, and the company expects further margin improvement in the coming quarters.
