Steel Strips Wheels Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 7 Aug 2026 | Auto Components | Market Cap: ₹5.0K Cr
Volume growth expected to be modest at 2-3% for the current year due to export challenges, down from an anticipated 5-6% at the start (Page 7). Management anticipates a steady volume growth of about 2-3% for the full year FY '26, down from an earlier expected 5-6%, mainly due to export uncertainties and U.S.
From Steel Strips Wheels Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹295
Market Cap
₹5.0K Cr
P/E Ratio
22.5
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Steel Strips Wheels Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹1.3K Cr, net profit ₹49 Cr.
Full financials →📊 Revenue & Sales Performance
- →Volume growth expected to be modest at 2-3% for the current year due to export challenges, down from an anticipated 5-6% at the start (Page 7).
- →Domestic market shows positive trends with growth in two-wheelers, passenger vehicles (8-10%), and tractors (8-10%) (Page 10). Commercial vehicles (CV) expected to be flat to +2% (Page 10).
- →Export growth under pressure due to US tariffs; around INR50 crores quarterly U.S. revenues lost leading to margin impact (Page 14).
- →European export share rising from 32% to 52%, expected to provide some growth offset (Page 9). New programs with European OEMs underway (Page 9).
- →Capacity expansions: Knuckle capacity increasing from 0.3 to 1 million units by Sep/Oct 2026, expected to generate INR240-270 crores revenue at peak (Page 13). Alloy wheel capacity expanding from 4.2 to 5 million (Page 11).
- →Overall target: INR4,800 crores revenue this year despite export challenges; future growth prospects tied to tariff resolutions and capacity ramp-up (Page 7).
📈 Profitability & Margins
🏗️ Capital Expenditure Plans
- →Planned total capex for FY '26 is around INR250 crores, with INR115 crores already spent in H1 FY '26.
- →Major focus on knuckle plant expansion from 0.3 million to 0.5 million capacity, costing approximately INR130 crores.
- →Additional knuckle capacity of 0.5 million under discussion, expected operational by Sept/Oct 2026.
- →Alloy wheel capacity to expand from 4.2 million to 5 million; overall capacity aimed to reach 5 million wheels.
- →INR88-90 crores capex for adding 1 million flow formed wheels within the 5 million capacity to enhance capability (not capacity).
- →INR30 crores planned for paint shop facility upgrades to meet new tinted wheel demand.
- →Future capitalizations expected around INR300-350 crores by March 2026.
- →Focus on capacity addition mainly for aluminum wheels and knuckles to capture lightweighting and aluminization trends.
- →Strategic collaboration discussions ongoing in Europe but no major acquisitions planned unless at steep discounts.
💰 Fundraising & Capital Structure
- →Steel Strips Wheels Limited is planning to take fresh debt in H2 FY '26 for knuckle expansion.
- →The knuckle expansion capex is around INR130 crores, aiming to increase capacity from 0.3 million to 0.5 million initially, with potential further expansion.
- →Current total debt (long-term and short-term) is around INR902 crores as of September.
- →Remaining debt maturity for H2 is approximately INR40 crores.
- →The company expects total debt to close at around INR950 to INR960 crores by the end of FY '26.
- →No specific mentions of equity fundraising were made in the call transcript on page 16 or preceding pages.
📋 Order Book & Pipeline
- →The knuckle segment had a revenue of approximately INR33 crores in H1 FY '26.
- →For H2 FY '26, an additional INR38 crores to INR40 crores revenue from knuckles is anticipated.
- →Total revenue for knuckles in FY '26 is expected around INR75 crores to INR80 crores.
- →Four programs are currently running for knuckles; two more programs are yet to start.
- →For next financial year, the knuckle capacity (0.5 million units) is expected to be fully sold out, generating around INR100 crores to INR115 crores revenue.
- →Capacity addition discussions ongoing with customers to add another INR15 crores to INR20 crores revenue starting from Sept/Oct 2026 over 4-5 months.
- →Regarding European acquisition, discussions for collaborative efforts are underway with some European aluminum and steel wheel factories, though outright purchase is considered only at steep discounts.
- →The company remains focused on growing domestic and European businesses while awaiting favorable tariff changes for U.S. exports.
Key Metrics
Frequently Asked Questions
What were Steel Strips Wheels Ltd Q2 FY26 results?
Volume growth expected to be modest at 2-3% for the current year due to export challenges, down from an anticipated 5-6% at the start (Page 7). Management anticipates a steady volume growth of about 2-3% for the full year FY '26, down from an earlier expected 5-6%, mainly due to export uncertainties and U.S.
What is Steel Strips Wheels Ltd share price analysis?
Steel Strips Wheels Ltd currently shows a neutral. The stock trades at a P/E of 22.5 with a market cap of ₹5,032 Cr. Investors should review the full earnings analysis for detailed insights.
Is Steel Strips Wheels Ltd planning capital expenditure?
Planned total capex for FY '26 is around INR250 crores, with INR115 crores already spent in H1 FY '26.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.