Steel Strips Wheels Ltd

Website updates

• Links to Regulation 46 disclosures updated; Annexure A provides updated references; website remains www.sswlindia.com.

Meeting Details

• Date: 16 July 2026
• Event: Q1FY27 Results Conference Call
• Type/Mode: analysts/investors conference call (group); audio recording available

Participants

• Company role: Company Secretary & Compliance Officer

Purpose

• Discuss Q1FY27 results with analysts/investors; presentation shared

Additional Notes

• Audio recording of the conference call is available on the company's website

Meeting Details

• Date: 16 July 2026.
• Event: Q1FY27 Results Conference Call (Analysts/Institutional Investors).
• Recording: Audio recording is available on the company website.
• UPSI: No UPSI was shared during the interaction.

Business overview

• Automotive wheels designer and manufacturer; steel, alloy wheels and aluminium knuckles.
• Capacities: steel ~20 million wheels, alloy ~5 million, aluminium knuckles ~0.5 million.
• Strategic alliances with Tata Steel and Nippon Steel underpin supply and technology.
• AMW acquisition (2024) enables aluminium wheels and knuckles capacity expansion.
• Q1 FY27 revenue mix: Steel 63%, Alloy 35%, Aluminium Knuckles 2%.

Key operational highlights

• Alloy wheel capacity expanded to 3 million wheels at Mehsana.
• Truck wheels production started at Chennai plant.
• PV alloy wheels production started at Mehsana with 1.5 million capacity.
• Hot rolling mills started at Saraikela for back-integration of steel wheels.
• Exports show early recovery in June as tariff disruptions normalized.
• Mehsana and other plants support capacity expansion and diversification.

Financial performance

• Q1 FY27 revenue from operations Rs 1,509.8 Cr, up 27.2% YoY.
• EBITDA Rs 162.3 Cr; EBITDA margin 10.7%.
• PAT Rs 71.5 Cr; PAT margin 4.7%.
• Steel Wheels revenue Rs 953.8 Cr (~63%), Alloy Wheels Rs 532.9 Cr (~35%), Knuckles Rs 23.0 Cr (~2%).
• FY26 revenue Rs 5,182.8 Cr; EBITDA Rs 511.1 Cr; PAT Rs 202.1 Cr; EBITDA margin 9.9%; PAT margin 3.9%.

Capital structure & liquidity

• Total equity Rs 1,734.8 Cr; borrowings long-term Rs 275.9 Cr; current borrowings Rs 550 Cr.
• Cash and cash equivalents Rs 7 Cr; net cash from operating activities FY26 Rs 331 Cr.
• Current ratio ~1.57x; debt/EBITDA 1.09x; debt/equity ~0.49x.

Strategic priorities & outlook

• Shift sales mix toward higher-margin alloy and exports; automate via robotics to cut costs.
• Expand aluminum product portfolio; integrate aluminium wheels and knuckles capacity.
• Industry growth: steel wheel ~4% CAGR; alloy wheel ~12% CAGR over next five years.
• Capex: AMW expansion adds 1.2 million alloy wheels and 0.6 million knuckles.

Risks & mitigation

• Tariff-related disruptions risk to exports; June signs of tariff normalization provide potential tailwinds.

Governance & leadership

• Strategic stakes: Tata Steel 6.9% and Nippon Steel 5.4% in SSWL.
• AMW Auto Components acquisition completed (2024) to enable aluminium capacity expansion.
• No major governance changes disclosed in this update.

Financial Performance

• Q1 FY27 revenue from operations Rs 1,509.8 Cr, up 27.2% YoY.
• EBITDA Rs 162.3 Cr, up 33.0% YoY; EBITDA margin 10.7%.
• PAT Rs 71.5 Cr; up 43.3% YoY; PAT margin 4.7%.
• Gross margin 34.7%; EBITDA margin 10.7%; PAT margin 4.7%.

Operating Trends

• Exports began recovery in June after tariff disruptions normalized.
• Sales mix shifting toward higher-margin alloy wheels and exports.

Capacity and Capex

• Alloy wheel capacity addition of about 1.2 million; total capacity target 6.2 million for FY27.

Business Overview

• SSWL designs and manufactures steel and alloy automotive wheels.
• Aluminium knuckles introduced; diversification into aluminium products expanding capacity.
• Strategic stakes: Tata Steel 6.9% and Nippon Steel 5.4% in SSWL.

Operational Highlights

• Alloy Wheel capacity expanded to 3 million at Mehsana (2021).
• Commercialization of aluminium knuckles started; capacity expansion via AMW Auto Components acquisition.
• Q1 FY27 knuckles sales ~0.80 lakh revenue Rs 23 Cr.

Financial Performance

• Q1 FY27 revenue Rs 1,509.8 Cr, up 27.2% YoY.
• EBITDA Rs 162.3 Cr; margin 10.7%.
• PAT Rs 71.5 Cr; margin 4.7%.
• FY26 revenue Rs 5,182.8 Cr; EBITDA Rs 511.1 Cr; PAT Rs 202.1 Cr.

Capital Structure & Liquidity

• Total borrowings ~Rs 825.9 Cr (non-current Rs 275.9 Cr; current Rs 550.0 Cr).
• Debt/EBITDA 1.09; Debt/Equity 1.03; RoCE 18.0%; RoE 12.0%.
• Net cash from operating activities FY26 Rs 331 Cr; investing -Rs 184 Cr; financing -Rs 144 Cr.

Strategic Priorities & Outlook

• Aim to reach ~6.2 million wheel capacity by FY27; alloy capacity additions ~1.2 million.
• Growth driven by higher-margin alloy and exports; 4% steel and 12% alloy industry growth.
• Robotic automation to reduce operating costs; aluminium product portfolio expansion.

Risks & Mitigation

• Tariff-related export disruptions have abated; exports expected to recover.
• Backward integration via hot rolling mills supports cost and supply flexibility.

Governance & Leadership

• Tata Steel holds 6.9% stake; Nippon Steel (Sumitomo) 5.4% stake.

Financial results and approvals

• The Board approved unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Audit Committee reviewed and recommended the results.
• Independent auditors AKR & Associates issued limited review reports.
• Auditors' review concluded no material misstatement.
• CODM confirms no reportable segments under IND AS 108.
• Results prepared in IND AS; board approval at the 15 July 2026 meeting.

Meeting Details

• Date and time: July 16, 2026 at 10:00 a.m. IST.
• Type and mode: Group, virtual audio conference call.
• Organiser: ICICI Securities Limited.
• Venue: Virtual.
• Registration/Access: Zoom Webinar.

Participants

• Managing Director (company participant).
• Chief Financial Officer.
• Executive Director, International Marketing & Operations.
• Vice President, Finance.

Purpose

• Purpose: Q1FY27 results discussion with analysts and investors.
• Event hosted to discuss Q1FY27 earnings.

Additional Notes

• Registration via Zoom Webinar; no links included here.