Any current/future new fundraising through debt or equity?

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 pa

Any current/future capex/capital investment/strategic investment?

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 f

Future growth expectations in sales/revenue/volumes?

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

Current/ Expected Orderbook/ Pending Orders?

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

Steel Strips Wheels LtdQ3 FY26

Steel Strips Wheels Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹313P/E: 22.5Market Cap: ₹5.0K Cr

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

→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).

Margin guidance

Category 3

- 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. tariffs. - EBITDA per wheel targets: near-term milestone of INR 260-265, progressing to INR 300+ levels over 2-3 years as capacity expansions and higher-margin businesses mature. - Alloy wheels segment is expected to continue strong growth, increasing its revenue share beyond the current 36%, supporting margin stability. - Aluminum knuckles segment is already breakeven and expected to scale capacity to 0.5 million units by Q4 FY '26 / Q1 FY '27, contributing positively to EBITDA. - Export challenges, especially U.S. tariffs, have caused a revenue and margin hit (~INR 50 crores revenue lost and INR 8-10 crores margin deficit per quarter); resolution would enable margin recovery. - Overall EBITDA for FY '26 expected flattish (~INR 470-480 crores) with margin recovery dependent on removal of tariff-related barriers. In summary, cautious growth with margin improvement expected as export issues resolve and new capacities ramp up.

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Fundraise plans

Yes

→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

→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.

Capex plans

Yes

→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.

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