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Fri, 03 Jul 2026
10:41:16 am
Fri, 03 Jul 2026
10:41:16 am
Synopsis
Steel Strips Wheels, backed by Tata Steel, is strengthening its position in India's EV supply chain with an 80% EV scooter wheel market share, ₹500 crore expansion, record FY26 results, and strong long-term growth outlook.
Steel Strips Wheels Ltd (SSWL) is increasingly emerging as one of the most closely watched auto ancillary companies in India's rapidly growing electric vehicle (EV) ecosystem. Backed by Tata Steel, which holds a 6.92% stake in the company, Steel Strips Wheels has built a dominant position in the EV supply chain with an estimated 80% market share in electric scooter wheels while continuing to expand its presence across passenger vehicles, commercial vehicles, tractors, and exports.
The company recently delivered its strongest financial performance on record, reporting all-time high revenue and EBITDA during FY26, supported by robust domestic demand, increasing adoption of alloy wheels, and improving operational efficiencies. Management has also announced an ambitious ₹500 crore capital expenditure (Capex) plan to expand aluminium wheel and aluminium knuckle manufacturing capacity, positioning the company to capture future growth in India's premium and electric vehicle markets.
With strong fundamentals, expanding manufacturing capacity, recovering export demand, and a growing presence in high-margin EV components, Steel Strips Wheels is increasingly becoming a stock that long-term investors may want to keep on their watchlist.
Steel Strips Wheels delivered another strong financial year despite higher depreciation from ongoing capacity expansion. The company reported record revenue and EBITDA during FY26, while management expects profitability to improve further as the new facilities begin commercial production.
The company's long-term financial performance also remains healthy, with consistent revenue growth, improving operating cash flows, and stable returns on capital. While profit growth remained relatively muted due to higher depreciation expenses, management expects earnings to accelerate in FY27 as capacity utilisation increases.
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| Particulars | FY26 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹5,183 Crore | ₹4,429 Crore | 17% |
| EBITDA | ₹523 Crore | ₹487 Crore | 7% |
| Net Profit | ₹202 Crore | ₹202 Crore | Stable |
| Q4 Revenue | ₹1,475 Crore | ₹1,234 Crore | 20% |
| Q4 Net Profit | ₹64 Crore | ₹62 Crore | 4% |
| Metric | Value |
|---|---|
| Market Capitalisation | ₹3,981 Crore |
| Current Share Price | ₹253 |
| P/E Ratio | 19.7x |
| Book Value | ₹110 |
| ROCE | 16.0% |
| ROE | 12.3% |
| Dividend Yield | 0.50% |
| Performance Metric | Growth |
|---|---|
| 10-Year Sales CAGR | 16% |
| 5-Year Sales CAGR | 24% |
| FY26 Revenue Growth | 17% |
| 10-Year Profit CAGR | 13% |
| 5-Year Profit CAGR | 33% |
| 10-Year Stock CAGR | 18% |
Steel Strips Wheels reported its best-ever financial year, driven by healthy growth across domestic automotive segments.
Revenue for FY26 increased 17% year-on-year to ₹5,183 crore, while Q4 FY26 revenue rose 20% to ₹1,475 crore. The company also recorded its highest-ever EBITDA, reflecting improving operating efficiency despite higher depreciation from recently commissioned capacities.
Although profit after tax (PAT) remained largely stable at ₹202 crore, management clarified that higher depreciation expenses related to expansion projects impacted reported earnings. As these facilities begin commercial production, profitability is expected to improve further over the coming years.
| Particulars | FY26 |
|---|---|
| Revenue | ₹5,183 Crore |
| Revenue Growth | 17% YoY |
| Q4 Revenue | ₹1,475 Crore |
| Annual EBITDA | ₹523 Crore |
| PAT | ₹202 Crore |
| Expected PAT Growth (FY27) | 15–20% |
One of Steel Strips Wheels' biggest competitive advantages is its leadership in India's electric two-wheeler ecosystem.
Management stated that the company currently commands around 80% market share in EV scooter wheels, making it one of the largest suppliers to India's fast-growing electric mobility industry. In comparison, its market share in conventional internal combustion engine (ICE) two-wheelers stands at around 30%.
As monthly EV scooter sales continue to grow rapidly, this leadership position provides the company with a significant long-term growth opportunity.
To meet rising demand, Steel Strips Wheels is investing approximately ₹500 crore to establish two new manufacturing facilities at its Bhuj plant in Gujarat.
The expansion includes a new aluminium alloy wheel plant with annual capacity of 1.2 million units and an aluminium knuckle manufacturing facility capable of producing 1.1 million units annually.
Trial production is expected to begin around October 2026, while commercial production is likely to commence by January 2027.
Management expects the new facilities to contribute ₹700–800 crore in additional annual revenue once they reach optimal utilisation.
| Particulars | Details |
|---|---|
| Total Capex | ₹500 Crore |
| New Plant Location | Bhuj, Gujarat |
| Aluminium Wheel Capacity | 1.2 Million Units |
| Aluminium Knuckle Capacity | 1.1 Million Units |
| Trial Production | October 2026 |
| Commercial Production | January 2027 |
| Potential Revenue Addition | ₹700–800 Crore |
The company's aluminium business continues to gain momentum as vehicle manufacturers increasingly shift towards lightweight components.
Steel Strips Wheels reported nearly 30% growth in its alloy wheel business during FY26, with aluminium products now contributing approximately 36% of total revenue.
The company has also entered the aluminium knuckle segment, a high-value component widely used in electric vehicles, where management claims it currently enjoys a first-mover advantage.
Exports remained under pressure during FY26 due to global trade disruptions and US tariff-related challenges.
However, management expects exports to recover meaningfully during FY27 as demand improves across Europe, Latin America, Asia, and other international markets.
The company is targeting export revenue of nearly ₹600 crore, which would represent one of its strongest export performances to date.
Steel Strips Wheels has outlined an optimistic outlook for FY27 despite higher debt associated with ongoing expansion projects.
Management expects:
The company believes premium products, EV components, and higher-value aluminium offerings will continue driving margins over the coming years.
India's automotive component industry is undergoing a structural transformation as automakers accelerate investments in electric vehicles and lightweight materials. Steel Strips Wheels appears well positioned to benefit from this trend through its leadership in EV scooter wheels, expanding aluminium product portfolio, and increasing presence in premium automotive components.
The company's near-monopoly position in EV scooter wheels creates a strong competitive moat at a time when electric two-wheeler adoption continues to rise across India. Additionally, the ₹500 crore expansion demonstrates management's confidence in long-term demand and could significantly strengthen future earnings once the new facilities become operational.
Investors should also monitor export recovery, aluminium demand, capacity utilisation, and execution of the Bhuj expansion, as these factors are expected to play a crucial role in determining the company's future growth trajectory.
Investors should closely track commissioning of the new Bhuj facilities, growth in EV scooter sales, aluminium wheel demand, export recovery, EBITDA per wheel, capacity utilisation, and quarterly order momentum.
Execution of the ongoing expansion and sustained demand from India's EV ecosystem will remain the biggest catalysts for the stock over the next few years.
| Highlights | Details |
|---|---|
| Company | Steel Strips Wheels Ltd |
| Tata Steel Holding | 6.92% |
| EV Scooter Wheel Market Share | Around 80% |
| FY26 Revenue | ₹5,183 Crore |
| FY26 Revenue Growth | 17% |
| FY26 EBITDA | ₹523 Crore |
| Expansion Capex | ₹500 Crore |
| Revenue Target (FY27) | ₹6,500 Crore |
| Potential New Revenue | ₹700–800 Crore |
The company has reported record financial performance, commands around 80% market share in EV scooter wheels, and is investing ₹500 crore to expand manufacturing capacity.
The company is investing approximately ₹500 crore to establish aluminium wheel and aluminium knuckle manufacturing facilities in Bhuj, Gujarat.
Tata Steel currently holds 6.92% equity stake in Steel Strips Wheels.
Steel Strips Wheels supplies nearly 80% of India's EV scooter wheel market, making it one of the largest beneficiaries of India's growing electric mobility sector.
Key growth drivers include expanding EV adoption, increasing demand for aluminium wheels, capacity expansion, export recovery, and premium automotive component manufacturing.
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