Berliner Boersenzeitung - Steel Strips Wheels gains 36% in two sessions on growth outlook

Steel Strips Wheels share price movement

Share price of Steel Strips Wheels (SSWL) hit a new high of ₹533, rallying 13.5% on the BSE in Monday’s intraday deals against a backdrop of heavy volume. In the past two trading days, the stock price of the auto parts & equipment company zoomed 36% after it reported strong earnings for the quarter ended September 2026 (Q2FY27).

Thus far in the calendar year 2026, SSWL's market price zoomed 175%, compared to a 14% decline in the BSE Sensex.

At 01:51 PM, SSWL quoted 13% higher at ₹531, as compared to a 0.27% rise in the benchmark index. The average trading volume at the counter jumped over 10-fold, with a combined 24.33 million shares representing 15.5% of total equity of SSWL changing hands on the NSE and BSE.

What’s driving SSWL’s stock price?

SSWL reported strong performance in Q2FY27 with a standalone revenue growth of 61% year-on-year (YoY) at ₹1,930 crore. Earnings before interest, tax, depreciation and amortization (EBIDTA) over doubled YoY at ₹235 crore, with EBITDA margin improvement of 150 bps quarter-on-quarter at 12.2%. Profit after tax jumped 208% YoY at ₹119 crore.

SSWL is the leader in designing & manufacturing automotive wheel rims under both steel & alloy categories. It sells its products across the globe, and the company’s products cater to various customers engaged in manufacturing automotive and auto components.

The company further announced a ₹1,400 crore investment at Chhatrapati Sambhajinagar, comprising ₹815 crore for alloy wheels (2.5 million units p.a.), ₹410 crore for steel wheels (1.6 million units p.a.) and ₹175 crore for hot stamping (1.3 million strokes p.a.). The project is planned over a period of up to 60 months and will be funded through debt and internal accruals.

ICICI Securities view on SSWL

For Q2FY27, growth was above expectations. During the quarter, a key operational observation is the positive variance between value growth and volume growth which demonstrates a systematic transition toward high realization products. Along with this the quarter saw a 69% export revenue growth. This resulted in higher EBITDA per wheel reaching ~₹400/unit. Overall steel wheels and alloy wheels production also saw an increase in capacity utilizationl, according to ICICI Securities.

Overall, the brokerage firm has a positive view on SSWL due to its powertrain agnostic product profile (no EV risk), healthy volume growth visibility, increasing share of exports & alloy wheel in the overall sales mix, and the consequent rise in margins & return ratios. However, ICICI Securities said it awaits management commentary on export sales ramp-up and margin stabilization.

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(L.Kaufmann--BBZ)