SSWL Q2 FY27: consolidated PAT jumps 229% YoY as margins expand, revenue up 61%
PAT +229.29% YoY · revenue +60.76% · margins expanding · beat vs street
₹1,929.92 Cr
+60.76% YoY
₹116.95 Cr
+229.29% YoY
6.06%
+3.1pp YoY
₹7.44
Steel Strips Wheels' consolidated Q2 FY27 (quarter ended September 30, 2026) print is led by profitability, not just topline: consolidated PAT of ₹116.95 Cr is up 229.3% YoY (from ₹35.52 Cr) and 68.4% QoQ, well ahead of revenue growth of 60.8% YoY (₹1,929.92 Cr vs ₹1,200.57 Cr) and 27.8% QoQ. Standalone tells the same story (PAT ₹118.78 Cr, +234% YoY). There were no exceptional items in the current, year-ago or sequential columns, so the growth is organic rather than one-off-driven.
Q2 FY-2027 vs prior quarters
The PAT outrunning revenue is a margin story: consolidated NPM more than doubled to 6.06% (from 2.96% a year ago, 4.60% last quarter) and operating margin expanded to ~12.2% from 9.29% YoY and 10.79% QoQ. The expansion sits almost entirely on fixed-cost leverage rather than input costs — employee expense fell to 6.9% of revenue (from 8.68% YoY) and other expenses to 14.0% (from 17.5% YoY), even as the materials-cost ratio held roughly flat; depreciation rose 42.6% YoY on new capacity but was absorbed by the volume gain.
The stock went into the print at ₹411.5, up 12.8% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.
Management provided a positive outlook driven by strong domestic demand and an expected recovery in exports. Revenue is projected to grow significantly, supported by a favourable product mix shifting towards higher-margin alloy wheels and expansion in aluminium products. The company anticipates continued operational op
— This quarter: beat
This comfortably beats management's own FY27 guidance of 15-20% PAT growth and ~20% revenue growth to ₹6,000 Cr standalone turnover (set on the July 2026 concall): H1 FY27 standalone PAT of ₹190.29 Cr is already 94% of all of FY26's full-year PAT, and H1 diluted EPS of ₹11.83 sits close to the Street's full-year FY27 consensus EPS of ₹13.40 cited in pre-result coverage — a number that will likely need upgrading. Our pre-result preview flagged PAT growth of ~25-35% YoY as the expectation; the actual +229% print is far outside that band. The print came alongside two other board actions: a ₹1,400 Cr greenfield facility approved for Chhatrapati Sambhajinagar (alloy wheels, steel wheels and hot-stamping, phased over 60 months) and an interim dividend of ₹1.50/share. The company had also flagged a record monthly sales turnover for September 2026 ahead of this result, consistent with the quarter's revenue acceleration. No management press release accompanied this filing, so there is no verbatim commentary to reconcile beyond the board's concurrent actions (new VP Finance hire, board reconstitution after a director's cessation, and continued promoter-linked share purchases through late September).
W1
Execution on the ₹1,400 Cr Chhatrapati Sambhajinagar greenfield facility (2.5M alloy-wheel, 1.6M steel-wheel, 1.3M hot-stamping-stroke capacity) — approvals and capex draw-down pace over its 60-month build.
W2
Whether H2 FY27 PAT growth stays well ahead of management's 15-20% full-year guidance given H1 standalone PAT (₹190.29 Cr) is already 94% of FY26's full-year PAT.
W3
OPM trajectory — currently ~12.2% (up from 9.29% YoY) — as the new greenfield capex and higher depreciation phase in.
Clean typed, reviewed-unaudited statement; no exceptional items in current/QoQ/YoY columns. Consolidated PBT (₹156.34 Cr) includes ₹0.15 Cr share of associate (Clean Max Astria) profit; consolidated PAT is ~1.5% below standalone, within normal minority/associate range — no material divergence.
Can SSWL sustain record momentum amid capacity ramp? Q2 to test guidance buffer
Steel Strips Wheels reports into record monthly sales and a stock trading 30% above analyst targets. Q2 will show whether the company can continue outrunning its own 15–20% PAT guidance while maintaining margins through the capacity transition.
The Q2 test: momentum vs. margin buffer
Steel Strips Wheels is firing on all cylinders. September 2026 marked the company's highest-ever monthly sales turnover at ₹625.81 crore—a 52.4% year-on-year surge from ₹410.60 crore a year ago. August matched that scale at ₹592.92 crore. Within the September print, exports surged 54%, the aluminum segment jumped 82%, and the 2–3 wheeler and truck segments grew 61% and 54% respectively. For Q2, Street expectation is a sustained print in the ₹550–580 crore range on the back of this momentum—well on plan for the company's ₹6,500 crore full-year revenue guidance (20%+ growth) and 15–20% PAT growth.
The catch: Q1 delivered a 47% consolidated PAT jump, so the bar for "on-plan" in Q2 is not "15–20%," it's whether margins hold while the company ramps capacity at Bhuj (₹500 crore CapEx program for aluminum wheels and knuckles). If Q2 replicates Q1's margin expansion, the Street's conservative PAT growth guidance will look stale by mid-year. If margins soften due to mix or inflation, the stock—now trading at ₹418, a 30–50% premium to analyst consensus targets—could face a repricing.
~₹550–580 Cr
Q1 was ₹530 Cr; Sept monthly at ₹625.81 Cr suggests trend acceleration
~25–35%
Guidance 15–20% for FY; Q1 delivered 47%; Q2 will reveal true guidance margin
expect 18–19%
FY27 guided at ₹650 Cr EBITDA (~20% of ₹6,500 Cr revenue); Q1 tracking at 19.2%
~₹150 Cr (estimated Q2)
Sept up 54% YoY; FY27 target ₹600 Cr annual; Q2 should trail Sept highs
On track for FY27?
Yes, and ahead. The company guided FY27 revenue at ₹6,500 crore (20%+ growth) and PAT growth of 15–20%. Q1's 27% revenue growth and 47% PAT growth suggest a confidence problem—either the guidance was sandbagged, or Q1 benefited from seasonal/order timing that Q2 and Q3 won't repeat. Exports are critical: the company expects ₹600 crore of exports for the full year, and Sept's 54% growth (estimated ₹150+ crore for the month) is well ahead of a linear run-rate. If that pace sustains through Q2–Q3, FY27 could punch above guidance; if it normalizes, PAT lands at the 15–20% band. The asset utilization target is 95%, implying near-full production; the question is whether pricing holds at those volumes.
Street view
1 · ESG rating upgrade (Oct 16)
CRISIL assigned SSWL a "Strong" ESG rating of 64, reflecting governance and sustainability improvements. Non-material operationally, but signals board capability and ESG positioning ahead of decade-long capex cycle.
2 · Promoter acquisition activity (Sept 8, Sept 16, Sept 24)
Sunena Garg and Persons Acting in Concert (PACs) have filed three separate substantial-acquisition disclosures. Latest SAC filing (Sept 24) shows active share accumulation. Promoter fresh buying at elevated prices is a vote of confidence in FY27 delivery; watch whether it continues or stops post-result.
3 · Director re-appointments & Board reconstitution (Sept–Oct)
Directors Dheeraj Garg and Sanjay Garg re-appointed at AGM (Sep 30); Board committees reconstituted post-independence change. Routine governance; no operational implication.
4 · Shareholding trend
Promoter steady at ~61.14%. FII holding 8.60% (up 39 bps QoQ). DII 3.14% (down 194 bps QoQ). Retail/other absorbing outflows; no institutional repositioning alarm.
What a strong Q2 looks like. What a weak one does.
Strong Q2: Revenue in ₹560–590 Cr range (in line with Q1 trajectory and Sept monthly run-rate), PAT growth of 30%+ YoY, EBITDA margin sustained at 18.5%+. Aluminum segment extends the 80%+ growth theme; exports sustain 50%+ growth YoY. Management reiterates or raises FY27 revenue guidance, narrows PAT growth band to 20–25%, and details capacity ramp confidence (Bhuj timeline, order book depth). Stock reaction: re-rating upward if guidance raised; consolidation if in-line but margin maintenance reassures on sustainability.
Weak Q2: Revenue < ₹530 Cr (below Q1, suggesting Sept was a one-off), PAT growth 15–20% (flat to guidance, not outperforming), EBITDA margin < 18% (cost inflation or mix headwind). Export growth moderates to 20–30% YoY; aluminum growth decelerates. Management guides FY27 revenue down to ₹6,200 Cr or PAT growth revised downward to 10–15%. Stock reaction: sharp correction of 10–15% as the bull thesis (guidance bust, margin risk) unwinds.
The setup in one sentence
SSWL has seized a rare auto-export cycle (aluminum, 2–3W, truck strength) and delivered a record Sept print (+52% YoY), but is now trading 30–50% above analyst consensus, so Q2 must prove the growth is sustainable and margins hold through capacity transition—otherwise the valuation reset is sharp.
Three things to watch on Oct 23
1. Revenue guidance for FY27—stays at ₹6,500 Cr or revises up? If management raises the full-year guide on the back of 9M trajectory, the stock can justify current levels; if it holds the old guide, the onus is on Q3–Q4 to justify the bull run and current valuation. 2. EBITDA and margin trajectory. With Bhuj capex underway and production ramping, watch whether EBITDA margin narrows (cost headwind) or stays >18% (pricing power intact). This will set the tone for FY27 PAT guidance credibility. 3. Export and aluminum segment momentum continuation. Are Sept–Oct runs sustainable (50%+ growth), or are they peak-cycle and moderating? This will signal whether the cycle is multi-quarter or a 2–3 month blip.
Steel Strips Wheels has entered a rare window of operational outperformance—record monthly sales, export tailwinds, ESG credibility, and promoter conviction. The stock is pricing that in at ₹418, a 30–50% premium to analyst targets. Q2's job is to confirm that the margin buffer is real and guidance is credible. On Oct 23, the Street is watching for either a guidance raise (strong) or confirmation that the 15–20% PAT growth is on-plan despite Q1's 47% beat (reassuring). Any slip in EBITDA margin or export growth, or a lower FY27 guide, will unwind the premium fast. For now, momentum is bullish; on result day, execution credibility is the test.