Steel Strips Wheels Reports Massive Q2 Profit Growth and Expansion

Revenue grew 61% YoY to INR 1,930 crore; PAT surged 209% YoY to INR 119 crore.

Reader Takeaway: Strong operational leverage drives record profits, though long-term execution of the massive new Aurangabad greenfield project remains critical.

What just happened

Steel Strips Wheels Limited (SSWL) has posted strong Q2 FY27 results, significantly outperforming year-ago metrics. Revenue reached INR 1,930 crore, while EBITDA climbed 107% to INR 237 crore, pushing margins to 12.3%. The company also declared an interim dividend of INR 1.50 per equity share for shareholders.

Why this matters

The company is betting big on the future with a new INR 1,400 crore greenfield project in Aurangabad. This facility, spanning a 60-month execution window, will produce alloy wheels, steel wheels, and hot stamping components. Combined with existing Bhuj expansions, this highlights a clear strategy to dominate the aluminum wheel market, which currently contributes 45% of total revenue.

The backstory

SSWL has been pivoting toward a higher-margin product mix, specifically alloy wheels and tractor segments. With tractor market share rising to 45% and aluminum capacity set to exceed 6.2 million units post-Bhuj expansion, the company is successfully scaling its premium offerings. Management maintains confidence in sustaining an EBITDA-per-wheel of INR 404.

Risks to watch

The primary risk is the sheer scale of the new INR 1,400 crore capital expenditure. Funding this project will require a balanced mix of debt and internal accruals, which could impact leverage ratios. Additionally, the company remains sensitive to cyclical downturns in the commercial vehicle sector, which could pressure volume-dependent metrics despite current growth momentum.

What to track next

Investors should monitor the quarterly progress of the Aurangabad site and the commercial production of the aluminum knuckle facility, which is slated to begin in Q4 FY27. Exports remain a bright spot, with the company aiming for a three-year target of up to INR 2,000 crore.