Steel Strips Wheels Q2 FY27 Results: PAT Rises 229%

Consolidated profit rises sharply

Steel Strips Wheels Ltd reported a substantial increase in consolidated profitability for the quarter ended 30 September 2026. The company filed its Q2 FY27 results on 23 October 2026. Consolidated revenue from operations rose to Rs 1,929.92 crore from Rs 1,200.57 crore in the corresponding quarter a year earlier. This represented year-on-year growth of 60.75%. Profit after tax rose to Rs 116.95 crore from Rs 35.52 crore. The increase in PAT was 229.25% year on year. The results point to profit growth outpacing the rise in revenue during the quarter.

Operating profit more than doubles

Operating profit for Q2 FY27 stood at Rs 235.84 crore, compared with Rs 111.48 crore in Q2 FY26. This was a year-on-year increase of 111.55%. Operating profit grew faster than the company's revenue, indicating stronger operating leverage in the reported period. Based on the disclosed figures, the operating margin was about 12.2%. This compares with about 9.3% in the year-ago quarter. The margin expansion was a key feature of the quarterly performance. It also contributed to the larger increase in net profit.

Quarterly financial highlights

Source: Steel Strips Wheels filing dated 23 October 2026.

Sequential performance also improves

The consolidated revenue figure was higher than Rs 1,509.82 crore reported in Q1 FY27. Total income in the September quarter was Rs 1,930.70 crore, including Rs 0.77 crore of other income. In the preceding June quarter, total income was Rs 1,510.66 crore. Profit before tax increased to Rs 156.19 crore in Q2 FY27 from Rs 93.28 crore in Q1 FY27. PAT rose from Rs 69.45 crore in the preceding quarter to Rs 116.95 crore. This places the Q2 PAT margin at about 6.06%.

Raw-material revisions supported sales

The company disclosed supplementary sales related to raw-material purchase-order revisions of about Rs 140 crore during Q2 FY27. The corresponding amount for the first half of FY27 was about Rs 183 crore. These revisions formed part of the period's reported sales performance. Revenue growth should therefore be read alongside this disclosed contribution. The company reported standalone revenue of about Rs 1,929.9 crore for the quarter in its results communication. The headline consolidated figures in the filing were also Rs 1,929.92 crore for revenue and Rs 116.95 crore for PAT.

Greenfield project receives board approval

Alongside the results, Steel Strips Wheels said its board approved a greenfield manufacturing facility in Aurangabad, also referred to as Chhatrapati Sambhajinagar. The estimated project outlay is about Rs 1,400 crore. The disclosed allocation includes about Rs 815 crore for alloy-wheel capacity, Rs 410 crore for steel-wheel capacity, and Rs 175 crore for hot-stamping operations. The proposed facility is planned to add annual capacity of 25 lakh alloy wheels and 16 lakh steel wheels. The hot-stamping proposal targets passenger-vehicle body parts and is expected to add 13 lakh annual strokes. The project remains subject to necessary approvals and clearances.

Funding and execution remain relevant

The company has indicated that the planned expansion would be funded through debt and internal accruals. That makes project financing and execution important considerations as the plan progresses. Management expects the Chhatrapati Sambhajinagar capacity to be completed within 60 months, subject to approvals. The supplied results commentary also noted that first-half operating cash flow trailed PAT as inventory and receivables absorbed funds. This does not alter the reported earnings figures, but it provides context on working-capital use. Investors will likely track project milestones, funding decisions and cash-flow movement in subsequent disclosures.

Interim dividend announced

The board also declared an interim dividend of Rs 1.50 per equity share of face value Rs 1 each for FY27. The stated record date is 30 October 2026. Payment is scheduled on or before 21 November 2026. The dividend announcement followed the board's consideration of the unaudited quarterly and half-yearly results. It gives eligible shareholders a defined distribution timeline. The company has not provided further details in the supplied material on future dividend policy.

What the results mean for investors

The September-quarter numbers show a meaningful improvement in Steel Strips Wheels' scale and profitability. Revenue increased by Rs 729.35 crore from the year-ago period, while PAT increased by Rs 81.43 crore. Operating profit increased by Rs 124.36 crore. The faster growth in operating profit and PAT compared with sales is reflected in the rise in reported margins. At the same time, the proposed Rs 1,400 crore expansion adds a significant capital-allocation development to the quarterly update. Future filings will provide the next confirmed updates on capacity approvals, project funding and operating performance.

Conclusion

Steel Strips Wheels closed Q2 FY27 with consolidated revenue of Rs 1,929.92 crore and PAT of Rs 116.95 crore, supported by higher operating profit and margin expansion. The next developments to monitor are the interim dividend payment, project approvals and updates on the proposed greenfield facility.