Any current/future new fundraising through debt or equity?

No new borrowings planned: Management stated that the capex of INR150-160 crores for FY '25-'27 will be fully funded through internal accruals with no need for new debt. Current debt status: Total debt is around INR962 crores, with INR406 crores long-term and the rest short-term. Debt repayment: Regular repayments of INR100-110 crores annually are scheduled, with opportunities explored for prepayments whenever possible. No new additions to debt: Management confirmed that there will be no new additions to working capital or term loans. Equity fundraising: There was no mention or indication of a

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

Capex guidance of INR150-160 crores planned for FY '25-'26 and '26-'27, funded entirely from internal accruals, no new borrowings expected. Investments include expansion in alloy wheels capacity from 5 million to 10 million units over 5 years. Knuckles capacity expansion from 0.5 million to 2.5 million units targeted with a 2 million plant capex expected soon (execution 9-11 months). Jamshedpur plant expansion to increase steel wheel capacity from ~150,000 to 200,000 units/month, adding ~100 bps margin. Tractor capacity moving from 70,000 to 100,000 units/month underway. Capex related to alumi

Future growth expectations in sales/revenue/volumes?

Tractor segment: Anticipated continued growth with significant potential for expanded market share (Page 3). Export revenue: Projected to reach INR550-600 crores for FY '25 with improving geopolitical conditions driving demand increase, especially from Q4 (Page 3, 14). Alloy wheels: Expected 5-6% industry volume growth for FY '25; company aims to outpace this with 7-8% growth and expand capacity to 5-10 million wheels over next 5 years (Pages 6, 10). Aluminum knuckles: Nascent but high-potential segment targeting INR1,000 crores market size over next 3-4 years with 0.45 million units pha

Future growth expectations in earnings/operating earnings/profits/EPS?

The company anticipates record EBITDA accretion in the next financial year driven by alloy wheels, exports, and aluminum knuckles segments. EBITDA per wheel increased to INR262 and is expected to improve further with higher-value products like alloy and OTR wheels. Knuckles business revenue visibility: INR80 crores in FY '26, increasing to INR105-115 crores in FY '27 with double-digit margins. Export revenue expected to grow 40-50% next year supported by a firm order book. Alloy wheel volume is poised to grow with 75-80% capacity utilization expected next year and a 7-8% alloy penetration grow

Current/ Expected Orderbook/ Pending Orders?

Current export order book is around INR175 crores to INR180 crores. For Q4, expected export orders of INR155 crores to INR160 crores are considered doable. Knuckle business: 7 RFQs are under discussion involving electric and ICE platforms, with steel to aluminum knuckle migration underway. Mass production of knuckles started in November; expected revenue INR14-15 crores in the current year, INR80 crores in FY '25-'26, and INR105-115 crores in FY '26-'27 at 65% utilization. Capex guidance for knuckle plant of INR200 crores expected by February, with execution taking 11-12 months. Discussions on

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Steel Strips Wheels LtdQ4 FY26Auto Components

Steel Strips Wheels Ltd Q4 FY26 Earnings Call Analysis

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

Price: ₹230P/E: 16.3Market Cap: ₹3.2K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Tractor segment: Anticipated continued growth with significant potential for expanded market share (Page 3).
→Export revenue: Projected to reach INR550-600 crores for FY '25 with improving geopolitical conditions driving demand increase, especially from Q4 (Page 3, 14).
→Alloy wheels: Expected 5-6% industry volume growth for FY '25; company aims to outpace this with 7-8% growth and expand capacity to 5-10 million wheels over next 5 years (Pages 6, 10).
→Aluminum knuckles: Nascent but high-potential segment targeting INR1,000 crores market size over next 3-4 years with 0.45 million units phase 1 capacity expanding to 1 million units; revenue forecast INR14-15 crores in FY '24, INR80 crores in FY '26, and INR105-115 crores in FY '27 (Pages 5, 8, 20, 21).
→Steel wheels: Steady growth alongside alloy wheels; currently a major revenue driver (Page 10).
→Overall EBITDA and margins: Expected improvement with new product lines and capacity utilization rising (Pages 7, 13).

Margin guidance

Category 1

→The company anticipates record EBITDA accretion in the next financial year driven by alloy wheels, exports, and aluminum knuckles segments.
→EBITDA per wheel increased to INR262 and is expected to improve further with higher-value products like alloy and OTR wheels.
→Knuckles business revenue visibility: INR80 crores in FY '26, increasing to INR105-115 crores in FY '27 with double-digit margins.
→Export revenue expected to grow 40-50% next year supported by a firm order book.
→Alloy wheel volume is poised to grow with 75-80% capacity utilization expected next year and a 7-8% alloy penetration growth forecasted.
→EBITDA margins improved to ~11.3% in recent quarters with cost optimization efforts ongoing.
→Significant capex planned (~INR150-160 crores for FY '25-'27) funded from internal accruals without additional debt thereby supporting growth.
→Earnings growth driven by expansion in high-margin products, increasing market share, and capacity utilization.

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Fundraise plans

→No new borrowings planned: Management stated that the capex of INR150-160 crores for FY '25-'27 will be fully funded through internal accruals with no need for new debt.
→Current debt status: Total debt is around INR962 crores, with INR406 crores long-term and the rest short-term.
→Debt repayment: Regular repayments of INR100-110 crores annually are scheduled, with opportunities explored for prepayments whenever possible.
→No new additions to debt: Management confirmed that there will be no new additions to working capital or term loans.
→Equity fundraising: There was no mention or indication of any equity fundraising plans during the call.

Order book

Yes

→Current export order book is around INR175 crores to INR180 crores.
→For Q4, expected export orders of INR155 crores to INR160 crores are considered doable.
→Knuckle business: 7 RFQs are under discussion involving electric and ICE platforms, with steel to aluminum knuckle migration underway.
→Mass production of knuckles started in November; expected revenue INR14-15 crores in the current year, INR80 crores in FY '25-'26, and INR105-115 crores in FY '26-'27 at 65% utilization.
→Capex guidance for knuckle plant of INR200 crores expected by February, with execution taking 11-12 months.
→Discussions ongoing with OEMs like Stellantis and VW Group for 17 projects, with one already awarded for next financial year delivery.
→Alloy wheel and exports have firm order books supporting 40-50% growth next year.

Capex plans

Yes

→Capex guidance of INR150-160 crores planned for FY '25-'26 and '26-'27, funded entirely from internal accruals, no new borrowings expected.
→Investments include expansion in alloy wheels capacity from 5 million to 10 million units over 5 years.
→Knuckles capacity expansion from 0.5 million to 2.5 million units targeted with a 2 million plant capex expected soon (execution 9-11 months).
→Jamshedpur plant expansion to increase steel wheel capacity from ~150,000 to 200,000 units/month, adding ~100 bps margin.
→Tractor capacity moving from 70,000 to 100,000 units/month underway.
→Capex related to aluminum knuckles, first phase (~0.45 million units) with ROCE >20%, breakeven ~55-60% utilization.
→Strategic discussions underway for futuristic metal technologies; at a preliminary stage.
→Customer-driven capex signals expected by February for knuckles plant.

How does Steel Strips Wheels Ltd rank vs peers in Auto Components?

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