Synopsis: An auto ancillary player delivered its best-ever year, with record revenue and profits, a dominant grip on a fast-growing EV component market, and a large expansion underway. A major steel giant’s stake in this company adds another layer of interest for investors.
A leading wheel manufacturer has wrapped up its strongest financial year yet, posting record revenue and EBITDA on the back of surging demand across passenger vehicles, tractors, and commercial vehicles. The company has also emerged as a near-monopoly supplier for a fast-expanding electric vehicle segment, giving it a unique edge over peers. With a large capacity expansion underway and exports recovering, management is projecting strong growth ahead, making this a stock worth watching closely.
Steel Strips Wheels Limited (SSWL) has posted its best-ever year, and the company’s management sounds even more confident about what lies ahead. With Tata Steel holding a 6.92% stake in the company and a near-monopoly in the fast-growing EV scooter wheel segment, SSWL is quietly building a strong case for investor attention.
Shares of Steel Strips Wheels Limited, with a market capitalization of Rs.3,913 Crore, closed at Rs.248 i.e. around 0.44% above its previous closing price of Rs.246.98. It trades at a P/E ratio of 20.41.
A Record-Breaking Year
For Q4 FY26, Steel Strips Wheels reported revenue of ₹1,475 crore, up 20% from ₹1,234 crore in the same quarter last year. This was driven by strong demand across alloy wheels, tractors, and commercial vehicles, helped along by the GST rate cuts that lifted domestic buying.
For the full year, revenue touched ₹5,183 crore against ₹4,429 crore in FY25, a growth of 17%. EBITDA (including other income) came in at ₹523 crore for the year and ₹152.52 crore for the fourth quarter alone, both the highest the company has ever recorded.
Profit after tax stood at ₹202 crore, marginally lower than last year. This wasn’t due to any weakness in the business, but because of higher depreciation of about ₹28 crore linked to new capacity coming online. Management expects PAT to grow 15-20% this coming year as these new assets start contributing fully.
EBITDA Per Wheel: The Number That Matters
Steel Strips Wheels prefers to track profitability per wheel rather than as a percentage margin, since raw material costs can distort the picture. EBITDA per wheel was flat at ₹262 for FY26, but Q4 alone came in at ₹282, a clear sign of improving momentum. Management is now guiding for close to ₹300 per wheel this year, with total EBITDA expected in the range of ₹650-750 crore.
Alloy Wheels and the Aluminum Story
The alloy wheel business grew 30% in value during the year and now makes up 36% of total revenue. This growth is coming from rising demand for aluminum wheels as vehicles get more premium. The company has also entered the aluminum knuckle business, a newer product line used mainly in electric vehicles, where it says it is currently the sole supplier in the market.
Tractors grew nearly 19% during the year, while commercial vehicles grew around 10%, a segment that would have done even better if not for a slowdown earlier in the year.
The EV Scooter Opportunity
One of the more interesting numbers to come out of the call was the company’s dominance in EV scooter wheels, where it claims close to 80% market share. In the ICE two-wheeler segment, its share is a more modest 30%. With EV scooter sales now crossing 100,000-110,000 units a month and growing, this segment could become an increasingly important profit driver for the company.
Big Expansion Underway
Steel Strips Wheels is investing around ₹500 crore to set up two new plants at its Bhuj facility, one for aluminum wheels (1.2 million unit capacity) and one for aluminum knuckles (1.1 million unit capacity). Trial production is expected to start around October, with commercial output following by January. Once fully operational, management expects this facility to add ₹700-800 crore in revenue at full utilization, with strong margins given the premium nature of these products.
Exports on the Mend
Exports fell 19% in FY26, largely due to US tariffs that hit Indian exporters harder than competitors. With tariff conditions now more even and new business coming in from Europe, Latin America, and Asia, the company expects exports to bounce back to around ₹600 crore this year, its second-best export performance ever.
Debt and Outlook
With the Capex underway, debt is expected to rise by around ₹200 crore this year. Management has set a revenue target of around ₹6,500 crore for the coming financial year, aiming for close to 95% utilization across its plants, something it says has never happened before in the company’s history.
Bottom Line
Between its dominant EV scooter wheel share, its expanding aluminum business, recovering exports, and Tata Steel’s stake as a vote of confidence, Steel Strips Wheels appears to be entering a phase of scaled-up growth. Investors tracking the auto ancillary space may want to keep this one on their radar.
About the Company
Steel Strips Wheels Limited is one of India’s leading manufacturers of steel and aluminum alloy wheels, serving passenger vehicles, commercial vehicles, tractors, and two/three-wheelers, including electric scooters. Part of the Steel Strips Group, the company has manufacturing facilities across India and exports to markets in the US, Europe, Latin America, and Asia. Tata Steel holds a 6.92% stake in the company, reflecting confidence in its long-term growth prospects within the auto component space.
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