Steel Strips Wheels: Business Overview & Financial Analysis

Steel Strips Wheels is an automotive component manufacturer focused on steel wheels, alloy wheels, and aluminium knuckles. Established in 1991, the company supplies passenger vehicles, commercial vehicles, tractors, two- and three-wheelers, and off-highway applications. Its manufacturing network spans Punjab, Tamil Nadu, Jharkhand and Gujarat, supported by more than 7,500 employees and installed capacity exceeding 25 million components annually.

Steel Strips Wheels Product and Revenue Mix (Q1 FY27)

Steel wheels remain the largest business, while alloy wheels have developed into a major premium-product growth engine. Aluminium knuckles represent the newest product vertical and are being scaled through additional capacity at Bhuj.

• Steel Wheels: Rs 953.8 crore, contributing around 63% of Q1 FY27 revenue.
• Alloy Wheels: Rs 532.9 crore, contributing around 35%.
• Aluminium Knuckles: Rs 23 crore, contributing around 2%.
• Steel Wheel volumes: Around 41 lakh units during Q1 FY27.
• Alloy Wheel volumes: Around 10 lakh units.
• Total volume: Around 52 lakh units, up 7.9% YoY.
• Aluminium Knuckles: Around 0.80 lakh units sold during Q1 FY27.

The product mix is progressively moving towards alloy wheels and other aluminium products, which management identifies as important for improving value addition and diversifying the business beyond traditional steel wheels.

Steel Strips Wheels Manufacturing Capacity and Utilisation (Q1 FY27)

The company's manufacturing footprint combines high-volume steel-wheel capacity with a growing aluminium platform. Existing alloy-wheel plants were operating at relatively high utilisation during Q1 FY27, supporting the decision to add capacity at Bhuj.

• Steel Wheel capacity: Around 207 lakh units annually.
• Steel Wheel utilisation: Around 76% in Q1 FY27.
• Alloy Wheel capacity: 50 lakh units annually.
• Alloy Wheel utilisation: Around 80%.
• FY27 Alloy Wheel target capacity: Around 62 lakh units after the planned 12 lakh-unit addition.
• Current Aluminium Knuckle capacity: Around 5 lakh units annually.
• Target Aluminium Knuckle capacity: Around 11 lakh units annually after expansion.
• Manufacturing locations: Dappar, Chennai, Jamshedpur, Mehsana, Saraikela and the acquired Bhuj manufacturing asset.

The capacity programme is concentrated on aluminium rather than large additions to steel wheels, reflecting management's strategy of increasing exposure to premium wheels and lightweight automotive components.

Steel Strips Wheels Bhuj Expansion (Q1 FY27)

The acquired Bhuj facility is central to the next phase of aluminium-product growth. Management is setting up additional alloy-wheel and aluminium-knuckle capacity at the location, with trial production targeted during FY27.

• Alloy Wheel addition: Around 1.2 million wheels annually.
• Post-expansion Alloy Wheel capacity: Around 6.2 million wheels annually.
• Aluminium Knuckle addition: Around 0.6 million units, taking total capacity to around 1.1 million units.
• Trial production: Targeted to commence during Q4 FY27.
• Customer approvals: Management is working on increasing customer validation and commercial supplies for aluminium knuckles.
• Application opportunity: Knuckles are targeted at both internal-combustion and electric-vehicle platforms.
• FY26 net capex: Rs 196 crore, largely deployed towards alloy-wheel and aluminium-knuckle capacity expansion.

The Bhuj expansion increases the company's aluminium manufacturing base without changing the core wheel business model and provides capacity for products with higher value addition than conventional steel wheels.

Steel Strips Wheels Customer and Vehicle Segment Presence (Q1 FY27)

Steel Strips Wheels supplies major automotive OEMs across passenger vehicles, commercial vehicles, tractors, two-wheelers and three-wheelers. Its share of business with individual OEM customers varies by product category and vehicle platform.

• Passenger Vehicles: Customers include Maruti Suzuki, Hyundai, Mahindra, Honda, MG Motors and Kia.
• Commercial Vehicles: Key customers include Tata Motors and Ashok Leyland.
• Tractors: Customers include Mahindra, Sonalika, Escorts and New Holland.
• Off-highway: JCB is among the major customers disclosed by the company.
• Two- and three-wheelers: Customers include Honda Motorcycle & Scooter India, Suzuki and Mahindra.
• Alloy Wheels: Major programmes include Hyundai, Renault, Kia, Nissan, Mahindra, Tata Motors, Skoda and MG models.
• Strategic shareholders: Tata Steel and Nippon Steel hold strategic stakes and provide support in areas such as steel supply, quality and technology.

The customer portfolio spans multiple vehicle categories, reducing reliance on a single automotive segment while creating opportunities to supply both steel and alloy wheels to the same OEM ecosystem.

Steel Strips Wheels Export Business (Q1 FY27)

Exports faced tariff-related disruption during part of Q1 FY27, although management reported signs of recovery towards June. The company has also been diversifying geographically to reduce dependence on individual export markets.

• Q1 FY27 export revenue: Around Rs 127 crore.
• Q1 FY26 export revenue: Around Rs 160 crore.
• Export markets: Include Europe, Latin America, North America, Asia, the Middle East and Africa.
• Geographic strategy: Greater diversification across Europe, Latin America and other international markets.
• Customer traction: Management reported activity from both existing and newly nominated export customers.
• June 2026: Export demand began showing recovery as tariff-related disruptions started normalising.

Exports remain important because they form part of management's higher-margin sales-mix strategy. The pace of recovery in volumes and customer nominations is therefore an important operating metric for FY27.

Steel Strips Wheels Q1 FY27 Financial Performance

Q1 FY27 delivered strong year-on-year growth across revenue, EBITDA and PAT. Domestic demand, better product mix and operating leverage supported profitability despite commodity-price volatility.

• Revenue from operations: Rs 1,509.8 crore, up 27.2% YoY.
• Gross profit: Rs 524.4 crore, up 26.1%.
• EBITDA: Rs 162.3 crore, up 33.0%.
• EBITDA margin: 10.7% versus 10.3% in Q1 FY26.
• Profit before tax: Rs 96.3 crore, up 46.2%.
• PAT: Rs 71.5 crore, up 43.3%.
• PAT margin: 4.7% versus 4.2%.
• EBITDA per wheel: Around Rs 314 versus Rs 262 in Q1 FY26.

Management attributed the margin improvement to operating leverage, cost optimisation, OEM-related input compensation and an increasing contribution from premium products.

Steel Strips Wheels FY26 Financial and Balance-Sheet Base

FY26 recorded strong revenue growth but lower profitability margins as the company continued investing in aluminium capacity. Operating cash generation remained positive while borrowings supported the ongoing expansion programme.

• FY26 revenue: Rs 5,182.8 crore versus Rs 4,429 crore in FY25.
• FY26 EBITDA: Rs 511.1 crore versus Rs 486.8 crore.
• EBITDA margin: 9.9% versus 11.0%.
• FY26 PAT: Rs 202.1 crore versus Rs 210 crore.
• Net cash from operating activities: Rs 331 crore.
• FY26 equity: Rs 1,734.8 crore.
• Long-term borrowings: Rs 275.9 crore at FY26-end.
• Current borrowings: Rs 550 crore at FY26-end.
• Net capex: Rs 196 crore during FY26.

The FY26 balance sheet reflects investment ahead of the next aluminium-capacity ramp-up. Cash generation, debt and returns from the Bhuj expansion are therefore key capital-efficiency indicators to monitor.

Steel Strips Wheels Management Commentary and Outlook (Q1 FY27)

Management retained a positive FY27 operating outlook, supported by domestic automotive demand, alloy-wheel penetration, rural recovery and the upcoming Bhuj capacity. It also expects the normalisation of export markets to provide an additional growth lever.

• FY27 revenue growth: Management is targeting more than 20% top-line growth.
• Alloy Wheels: Increasing penetration across passenger vehicles remains a principal growth driver.
• Tractor Wheels: Demand is being supported by rural recovery, higher-horsepower mechanisation and replacement demand.
• Commercial Vehicles: Management reported gradual improvement supported by infrastructure activity, freight movement and replacement demand.
• Exports: Higher volumes, geographic diversification and customer additions remain key priorities.
• Bhuj: Trial production for the expanded aluminium facilities is targeted during Q4 FY27.
• Operational efficiency: Earlier manpower-related production constraints were stated to have been resolved.
• Product strategy: Premium wheels and aluminium components remain central to improving the sales mix.

The principal metrics to track are Alloy Wheel capacity utilisation, Bhuj commissioning, aluminium-knuckle customer approvals, exports, EBITDA per wheel, steel-wheel volumes and the conversion of premium-product growth into sustained margin improvement.

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Sources & References

This company fact sheet has been prepared using the latest annual, quarterly and management disclosures provided for Steel Strips Wheels together with financial information available on Finology Ticker.

• Steel Strips Wheels Annual Report FY 2025-26
• Steel Strips Wheels Q1 FY27 Investor Presentation
• Steel Strips Wheels Q1 FY27 Earnings Conference Call Transcript
• Finology Ticker - Steel Strips Wheels Company Page

Disclaimer
The information presented above on Steel Strips Wheels has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Steel Strips Wheels page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.