SSWL sets ₹650 cr EBITDA target for FY27, plans ₹500 cr Bhuj plant
Management guided for a profit of about ₹300 per wheel on near-full capacity. A new aluminium facility is on track for year-end trials.
What's new
- Management set a ₹650 crore EBITDA target for FY27, with EBITDA per wheel guided at about ₹300.
- Exports are forecast to recover to ₹600 crore, up from ₹454 crore last year.
- The company is investing ₹500 crore in a new aluminium wheel and knuckle facility in Bhuj.
Why this matters
The guidance is a clear step-up in ambition. The export recovery assumption hinges on a 'more level playing field' in the US and diversification into Europe and Latin America. The ₹500 crore capex in Bhuj is the largest commitment to new capacity, targeting trial production by year-end. This is a confident management call, but it's all forward-looking.
What we're watching
- Execution of the export recovery plan against tariff and geopolitical risks.
- Progress on the Bhuj facility and its impact on capacity and cost structure.
- Achievement of the 95% capacity utilisation assumption underpinning the EBITDA per wheel target.
The full read
Steel Strips Wheels is projecting a big year. Management set a firm ₹650 crore EBITDA target for FY27, implying an operating profit of about ₹300 per wheel. The assumption is near-full capacity utilisation, around 95% across its assets. The export business, which was hit down to ₹454 crore by US tariffs last year, is expected to bounce back to ₹600 crore, buoyed by what management calls a 'level playing field' and expansion into Europe and Latin America. The capital commitment is the ₹500 crore Bhuj plant for aluminium components, targeting trial production by year-end. The transcript itself is a record of a previously held call, so it holds no surprise. The number to watch is ₹650 crore. It's a confident forecast that the open question is now execution.
Questions answered
- What is the core of Steel Strips Wheels' FY27 guidance?
- Management guided for a consolidated EBITDA of ₹650 crore, with an operating metric of about ₹300 profit per wheel. This is built on near-full capacity utilisation across its assets.
- How much does the company expect to earn from exports, and what's the growth story?
- The export target is ₹600 crore, up from ₹454 crore last fiscal year. Management cited a more competitive US market and new customer diversification into Europe and Latin America as the drivers.
- What is the big new investment announced?
- SSWL is committing ₹500 crore to build a new facility in Bhuj for aluminium wheels and knuckles. The plant is expected to begin trial production by the end of the current calendar year.
- Is this new information or just a repeat of what was said on the earnings call?
- The transcript formalizes commentary from the live call held on June 2. It adds no new data points beyond the guidance and capex plan already communicated to the market.