Steel Strips Wheels Q4FY26: Revenue up 20%, EBITDA hits record

Record quarter caps a high-growth FY26

Steel Strips Wheels Ltd (BSE: 513262) reported its highest-ever revenue for FY26, with management citing a 17% year-on-year increase. The March 2026 quarter (Q4FY26) also marked the company’s best quarterly revenue so far, supported by stronger domestic demand and GST cuts referenced by management during the concall. The quarter’s operational performance included record quarterly EBITDA, aided by improved operating leverage and higher utilisation. At the same time, profit growth remained muted on a year-on-year basis in consolidated numbers, even as sequential profit improved. The company also used its Q4FY26 concall to share FY27 and FY28 guidance, including targets for EBITDA, exports, and profit after tax (PAT) growth.

Q4FY26 financials: strong sales, mixed profit picture

For Q4FY26, consolidated net sales were reported at about ₹1,475 crore, up around 20% year-on-year from about ₹1,234 crore in Q4FY25. The company described this as a result of healthy momentum across alloy wheels, tractor, and commercial vehicle segments, alongside improved domestic demand. Consolidated EBITDA for the quarter was reported around ₹151 crore to ₹152.52 crore, with the higher figure referenced as “EBITDA with other income” in the concall commentary. Net profit for the quarter was reported at ₹60.85 crore, up 0.31% year-on-year versus ₹60.66 crore, but up sharply quarter-on-quarter from ₹46.61 crore. Separately, another results summary cited Q4 PAT at ₹64.46 crore and “Adjusted Net Profit” at ₹61.0 crore, indicating multiple profit presentations across disclosures. Operating margin was also flagged as a watch item, with one note citing a Q4 EBITDA margin of 10.1% versus 10.9% a year ago.

Full-year FY26: record revenue and EBITDA

On a full-year basis, Steel Strips Wheels reported revenue of ₹5,183 crore for FY26, compared with ₹4,429 crore in FY25, reflecting 17% year-on-year growth and the highest ever for the company. Full-year EBITDA (with other income) was reported at ₹523 crore, also the highest in its history. FY26 profit after tax stood at ₹202 crore, described as slightly lower than the prior year. Management attributed the year-on-year PAT softness mainly to higher depreciation of about ₹28 crore. The company linked its outlook to higher capacity and strong orders to use these capacities.

Segment trends: alloy wheels outpace the mix

Management highlighted a strong performance in the alloy wheel segment, reporting 30% growth in value during the period discussed. Alloy wheels contributed 36% of total revenue, driven by demand for premium aluminium wheels. The company also referenced healthy momentum in tractor and commercial vehicle segments during the quarter. This segment mix matters because it influences both utilisation and operating leverage, which management cited as key drivers behind the record quarterly EBITDA.

Operating metrics: EBITDA per wheel and margin signals

Steel Strips Wheels reported EBITDA per wheel of ₹282 for Q4, which management said exceeded expectations. The company stated this performance provides a base to target ₹300 per wheel next year. Despite the record quarterly EBITDA in absolute terms, margin commentary in the results summaries showed pressure compared with the prior year, with an EBITDA margin cited at 10.1% in Q4FY26 versus 10.9% in Q4FY25. Export contribution was also flagged as relevant to margins, since exports typically carry higher margins in the disclosures provided.

Manpower shortage: ₹80 crore sales loss, now resolved

The company disclosed that it faced manpower shortages that led to a loss of ₹80 crore in sales. Management stated that the manpower issue was resolved as of May. This is an important operational detail because such disruptions can affect output, utilisation, and quarterly delivery schedules, even if demand remains healthy.

Guidance: EBITDA ~₹650 crore and PAT growth of 15–20%

At its Q4FY26 concall, Steel Strips Wheels shared FY27 and FY28 guidance, including an EBITDA target of around ₹650 crore with an upward bias. The company also guided for PAT growth of 15% to 20% for the upcoming year, tying this projection to high capacity utilisation and strong order books. Management reiterated this 15% to 20% PAT growth expectation while discussing higher capacity and improved capitalisation. These targets frame how the company expects scale and utilisation to translate into earnings.

Bhuj expansion and EV focus: capacity-led growth levers

The company’s new Bhuj facility, with planned capex of ₹500 crore, is expected to add ₹700 to ₹800 crore in revenue at full utilisation. Separately, the EV segment was guided to grow 25% to 40%, supported by what management described as near-monopoly positioning in EV scooter wheels. These two levers, new capacity at Bhuj and EV-specific demand, were positioned as drivers for the next phase of growth alongside existing segments.

Exports: FY27 target ~₹600 crore amid a recent decline

Export revenue is expected to be around ₹600 crore for FY27, which management said would be the second highest ever, supported by rationalised tariffs and diversified market access. However, the provided results summaries also stated that exports declined 38% year-on-year in Q4FY26 and were down 19% year-on-year in FY26. This contrast underlines why investors may track export recovery alongside domestic demand, especially because exports were described as typically higher margin.

Key numbers snapshot

Market milestones and upcoming event

The disclosures also mentioned the “Last Reported Earnings” date as March 31, 2026, and the “Next Earnings Date” as June 02, 2026. With guidance on utilisation, exports, and new capacity, the next result cycle will be watched for updates on execution, exports trajectory, and whether margin trends stabilise.

Conclusion

Steel Strips Wheels closed FY26 with record revenue of ₹5,183 crore and a record quarterly revenue run-rate of about ₹1,475 crore in Q4FY26. Quarterly EBITDA reached a record level, and management pointed to stronger domestic demand and better operating leverage as key drivers. The company’s forward commentary centres on PAT growth of 15% to 20%, EBITDA guidance of around ₹650 crore, an export target of around ₹600 crore, and incremental capacity from the ₹500 crore Bhuj expansion. Updates around exports, margin movement, and ramp-up at new facilities are likely to remain central in upcoming disclosures, including the next earnings date indicated as June 02, 2026.