Steel Strips Wheels Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Steel Strips Wheels Ltd-$ filed with BSE on 21 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Steel Strips Wheels reported Q1 FY27 revenue of Rs 1,509 crore, up about 27% year-on-year, with standalone EBITDA including other income up 32% to Rs 165.17 crore and PAT up 43% to Rs 71.51 crore. Management attributed the growth to input price increases from OEMs, operating leverage, a favourable product mix and higher utilization across alloy, tractor and commercial vehicle segments. Exports declined year-on-year due to earlier tariff-related disruptions but showed sequential recovery, and the company detailed ongoing capacity expansions in aluminium wheels and knuckles at its Bhuj facility.
Numbers mentioned
Revenue: INR1,509 crores (Q1 FY27)
p. 3
“the company reported a revenue of INR1,509 crores.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Revenue growth Y-o-Y: 27% (Q1 FY27)
p. 3
“This is a growth of about 27% year-on-year.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Standalone EBITDA with other income: INR165.17 crores (Q1 FY27)
p. 3
“Standalone EBITDA with other income for the quarter increased by 32% Y-o-Y and stood at INR165.17 crores.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
EBITDA per wheel: INR314 per wheel (Q1 FY27)
p. 3
“EBITDA per wheel for current quarter stands at INR314 per wheel as compared to INR262 per wheel in the Quarter 1 FY26.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Margin expansion: 40 bps (Q1 FY27)
p. 3
“Margin percentages expanded during the quarter by 40 bps, driven by input increases received from OEMs other than raw materials, operating leverage, a favourable product mix and an increasing share of premium products and continued cost optimization initiatives across manufacturing facilities.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Profit after tax: INR71.51 crores (Q1 FY27)
p. 3
“The profit after tax grew 43% Y-o-Y to INR71.51 crores with PAT margin improving to 4.7%.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Alloy wheel business contribution: 35% (Q1 FY27)
p. 3
“Our alloy wheel business, which contributes 35% continues to remain one of the strongest growth”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Export growth month-on-month: 7% increase (June 2026)
p. 6
“so that's why you will see that in the month of June, we have shown a 7% increase in exports.”
Dheeraj Garg, page 6 of the filed PDF · View the filing
Export recovery quarter-on-quarter: 37% recovery (Q1 FY27 vs previous quarter)
p. 6
“But if you compare what has happened in the last quarter and where we are talking about this quarter, Q1, so you will see there is a recovery of almost 37%.”
Aditya Dixit, page 6 of the filed PDF · View the filing
Total borrowings: INR826 crores (FY26)
p. 9
“That is total long-term and short-term borrowings are around INR826 crores in FY '26.”
Pranav Jain, page 9 of the filed PDF · View the filing
Interest cost on borrowings: 8% to 9% (FY26)
p. 9
“And the interest cost on that borrowing is ranging between 8% to 9%.”
Pranav Jain, page 9 of the filed PDF · View the filing
Total planned capex for Bhuj expansions: INR420 crores (FY27)
p. 7
“And the total capex in both these are around INR420 crores.”
Pranav Jain, page 7 of the filed PDF · View the filing
Replacement/other plant capex: INR80 crores (FY27)
p. 7
“we are also doing some replacement and other plant capex of around INR80 crores.”
Pranav Jain, page 7 of the filed PDF · View the filing
Total capex estimate: around INR600 crores (FY27)
p. 7
“So let's say, INR600 crores plus/minus, you could sort of benchmark this as a capex for this year.”
Dheeraj Garg, page 7 of the filed PDF · View the filing
Raw material price pressure from aluminum: INR150 crores excess pressure (Q1 FY27)
p. 9
“There was an excess pressure of INR150 crores just from the increase in commodity prices,”
Dheeraj Garg, page 9 of the filed PDF · View the filing
Value added share of revenue: 70%
p. 10
“Overall, 70% would be value added.”
Dheeraj Garg, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 20% plus · FY27
stated firmly by Dheeraj Garg
p. 4
“Looking ahead, we remain optimistic about our outlook for FY27, targeting a top line growth of 20% plus.”
Dheeraj Garg, page 4 of the filed PDF · View the filing
EBITDA per wheel — more than INR310 · FY27
stated firmly by Dheeraj Garg
p. 4
“We remain focused on enhancing profitability by increasing our EBITDA per wheel from around INR262 in the previous financial year to more than INR310 through this financial year.”
Dheeraj Garg, page 4 of the filed PDF · View the filing
EBITDA per wheel trajectory
stated as an aspiration by Dheeraj Garg
p. 5
“But I can say that we have an upside bias on the INR314 number.”
Dheeraj Garg, page 5 of the filed PDF · View the filing
Export revenue — around INR600 crores · FY27
stated conditionally by Aditya Dixit
p. 6
“So I think we are very well on track in terms of our overall annual number, which we have set a target of around INR600 crores.”
Aditya Dixit, page 6 of the filed PDF · View the filing
Aluminium wheel plant trial production — fourth quarter of this current financial year
stated firmly by Dheeraj Garg
p. 4
“and trial production is expected to commence in the fourth quarter of this current financial year.”
Dheeraj Garg, page 4 of the filed PDF · View the filing
Agricultural wheel line commercialization — before the end of this calendar year
stated firmly by Dheeraj Garg
p. 8
“I think we are very optimistic to commercialize it before the end of this calendar year, definitely.”
Dheeraj Garg, page 8 of the filed PDF · View the filing
Further aluminium and knuckles capacity expansion — next 3 to 6 months
stated conditionally by Dheeraj Garg
p. 8
“If the export profile looks the way it's looking, then for sure, we will be looking at expanding further on in aluminium, further on in knuckles.”
Dheeraj Garg, page 8 of the filed PDF · View the filing
Export revenue growth — 20% increase
stated as an aspiration by Dheeraj Garg
p. 15
“So, I wouldn't put a number to it, but I will give you -- at least we should try to do a 20% increase, if not more, in that number going forward.”
Dheeraj Garg, page 15 of the filed PDF · View the filing
New capacity utilization — at least 80% utilization · first quarter of next financial year
stated as an aspiration by Dheeraj Garg
p. 16
“we have to be there at that level, at least 80% in the first quarter of next financial year we have to run both the units.”
Dheeraj Garg, page 16 of the filed PDF · View the filing
Knuckles revenue — INR110 crores to INR130 crores
stated conditionally by Dheeraj Garg
p. 13
“So that's I would put it in a ballpark of INR110 crores to INR130 crores, which is substantially up more than last year.”
Dheeraj Garg, page 13 of the filed PDF · View the filing
Global aluminium wheel dominance — long term
stated as an aspiration by Dheeraj Garg
p. 11
“our target is to become a very dominant player of aluminum wheels in the world.”
Dheeraj Garg, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the improvement stems from input price increases from customers and indicated an upside bias without committing to a specific new number.
Answered by Dheeraj Garg
Asked by Aditya Khetan: Whether EBITDA per wheel guidance is being raised given Q1 came in above the stated FY27 target.
p. 5
“So going ahead, I think, you know I don't want to jump the gun and say that we will do INR325 or INR350.”
Dheeraj Garg, page 5 of the filed PDF · View the filing
Management explained tariffs previously put India at a disadvantage versus Vietnam and Thailand, but conditions have since stabilized to a level playing field.
Answered by Dheeraj Garg
Asked by Aditya Khetan: Why exports declined year-on-year despite tariff uncertainty easing.
p. 6
“After that, the Trump tariffs took place and there was a lot of bickering with India over tariffs.”
Dheeraj Garg, page 6 of the filed PDF · View the filing
Management said new business has been awarded from existing customers and the segment is running at full utilization with the order book sold out.
Answered by Dheeraj Garg
Asked by Aditya Khetan: Update on knuckles business customer ramp-up.
p. 7
“now we are absolutely running at the moment as we speak at 100% utilization.”
Dheeraj Garg, page 7 of the filed PDF · View the filing
Management detailed capex of roughly INR420 crore for Bhuj alloy and knuckles expansion, INR80 crore for other plant capex, and an additional INR150 crore for agricultural wheel brownfield expansion.
Answered by Pranav Jain
Asked by Aditya Khetan: Breakdown of total capex plans across businesses.
p. 7
“And the total capex in both these are around INR420 crores.”
Pranav Jain, page 7 of the filed PDF · View the filing
Management said it is for agriculture wheels with fungibility to passenger car wheels, raising steel wheel capacity from 24 million to 26 million.
Answered by Dheeraj Garg
Asked by Nishita Shanklesha: What the brownfield expansion is for and its capacity impact.
p. 8
“Well, it's Overall 24 million. So I think that'll go up to 26 million.”
Dheeraj Garg, page 8 of the filed PDF · View the filing
Management clarified additional factoring limits of INR400-500 crore are used as needed, which adds to the reported interest cost.
Answered by Pranav Jain
Asked by Aditya Jhavar: Breakdown of borrowings and interest costs, and why P&L interest appears higher.
p. 9
“These are factoring limits.”
Pranav Jain, page 9 of the filed PDF · View the filing
Management said this is roughly 80-90% true, noting uncertainty about subsidized Chinese costs but confidence in being lowest-cost ex-China.
Answered by Dheeraj Garg
Asked by Madhur Rathi: Whether the company is the lowest-cost steel and alloy wheel producer domestically and globally.
p. 10
“if you look at ex China, then hands down, we are the lowest cost producer.”
Dheeraj Garg, page 10 of the filed PDF · View the filing
Management attributed confidence to geographic diversification of sales and noted competitors are taking business below cost.
Answered by Dheeraj Garg
Asked by Yash Jhurani: Whether alloy wheel margins can hold up as competitors expand capacity.
p. 12
“our competitors are taking businesses that are below cost margins.”
Dheeraj Garg, page 12 of the filed PDF · View the filing
Management said aluminum settlement has moved to monthly due to the West Asia crisis, giving a roughly 30-day lag that is matched with supplier terms.
Answered by Dheeraj Garg
Asked by Yash Jhurani: What is the pass-through lag for aluminum and steel price changes.
p. 13
“So, 30-day lag, but we are covered with that story because that's how much lag we get from our suppliers also.”
Dheeraj Garg, page 13 of the filed PDF · View the filing
Management pointed to the INR315 EBITDA-per-wheel reference given earlier and said it would prefer not to give further specific guidance this quarter.
Answered by Dheeraj Garg
Asked by Saket Kapoor: Outlook for EBITDA margin trajectory given volume growth and product mix shift.
p. 13
“I don't want to guide the market any more than what I've guided right now.”
Dheeraj Garg, page 13 of the filed PDF · View the filing
Management said it would not commit to a specific number but expects a substantial increase and highlighted a temporary blip only in the truck segment.
Answered by Dheeraj Garg
Asked by Ankur Kumar: Whether export growth of INR600 crore can continue improving, and status of domestic CV/tractor growth.
p. 15
“I think we're talking a very small blip in the Truck segment, but I don't see it derailing the tractor segment, by the way.”
Dheeraj Garg, page 15 of the filed PDF · View the filing
Management said knuckles capacity would ramp earlier, with both units targeted at least 80% utilization by the first quarter of the next financial year.
Answered by Dheeraj Garg
Asked by Ksush Nahar: When new capacities are expected to reach optimum utilization.
p. 16
“Knuckles, for sure, it will be earlier.”
Dheeraj Garg, page 16 of the filed PDF · View the filing
Risks flagged
War in West Asia and commodity price volatility affecting the business.
p. 3
“Despite the war in West Asia and the volatility in commodity prices especially, our business has continued to demonstrate resilience across key segments.”
Dheeraj Garg, page 3 of the filed PDF · View the filing
Prior tariff-related disruption creating a disadvantage versus Vietnam and Thailand and reducing exports.
p. 6
“we were sort of at an awkward position against Vietnam and Thailand for extended periods of time, which led to a decline in exports.”
Dheeraj Garg, page 6 of the filed PDF · View the filing
Uneven demand across certain commercial vehicle categories.
p. 4
“While industry demand continues to remain uneven across certain categories, we remain optimistic about the medium-term outlook supported by increased government spending and improving economic activity.”
Dheeraj Garg, page 4 of the filed PDF · View the filing
Manpower challenges experienced in the previous year, now resolved.
p. 4
“The manpower challenges experienced during the previous year have now been fully resolved, enabling smoother production planning and better execution.”
Dheeraj Garg, page 4 of the filed PDF · View the filing
Volatility of raw material prices skewing margin percentage interpretation.
p. 14
“And please don't count EBITDA percentages because raw material prices are so volatile that they skew our thinking.”
Dheeraj Garg, page 14 of the filed PDF · View the filing
Domestic alloy wheel pricing pressure from competitors selling below cost margins.
p. 12
“Yes, the domestic margins are crashing, and -- but we are not taking -- our competitors are taking businesses that are below cost margins.”
Dheeraj Garg, page 12 of the filed PDF · View the filing
A temporary blip in truck segment demand carried over from the previous month.
p. 15
“The only blip we've seen is in the truck space. That happened last month itself.”
Dheeraj Garg, page 15 of the filed PDF · View the filing
Potential for exceptional bad monsoons disrupting the agricultural demand boom.
p. 15
“This is a boom for the next 10, 15 years without a stop, I think, barring some exceptional bad monsoons or something else happening.”
Dheeraj Garg, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.