Steel Strips Wheels Ltd

- 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.

- 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.

- 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).

- 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.

- 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.