Steel Strips Wheels Profit Jumps 208% to 119 Crore Rupees; Shares Rise 36%
Key Facts
Steel Strips Wheels shares rose 36% over the two trading days before a Business Standard report published on October 26, 2026, after profit after tax jumped 208% year on year in the second quarter of fiscal 2027. In Monday’s trading, the stock hit a new level of 533 rupees, up 13.5% during the session. Standalone revenue rose 61% to 1,930 crore rupees, while profit after tax reached 119 crore rupees. The results came alongside a clear improvement in operating profit margin and the company’s announcement of a new investment plan. The figures put profit and revenue growth at the forefront of factors linked to the share-price move, with the 36% gain confined to a two-trading-day period.
Earnings before interest, taxes, depreciation and amortization more than doubled from the same quarter a year earlier, reaching 235 crore rupees in the second quarter of fiscal 2027. The margin on these earnings was 12.2%, after improving by 150 basis points quarter on quarter. The combination of higher earnings and a wider margin reflects improved operating performance during the period, alongside growth in standalone revenue. The report does not describe the profit growth as a record; the specific comparison is the 208% year-on-year increase.
The share-price rise coincided with heavy trading activity on October 26. Average trading volume also increased by more than 10 times, according to Business Standard. More broadly, the share price rose 175% from the start of 2026 through October 26, while the BSE Sensex fell 14%. The comparison puts the company’s performance on a different trajectory from the index over the same period, while the session jump and two-day gains remain figures tied to trading through the report date.
The company announced an investment of 1,400 crore rupees in Chhatrapati Sambhajinagar, spread across three production activities. It has allocated 815 crore rupees to alloy wheels, with planned capacity of 2.5 million units a year, and 410 crore rupees to steel wheels, with capacity of 1.6 million units a year. The hot-stamping line will receive 175 crore rupees, with planned capacity of 1.3 million strokes a year. The company plans to complete the project within up to 60 months, funded through debt and internal resources. The spending adds hot stamping to the wheel projects included in the plan and links the expansion to increased capacity across all three products.
Business Standard quoted ICICI Securities as saying export revenue grew 69% in the second quarter of fiscal 2027 and earnings before interest, taxes, depreciation and amortization stood at about 400 rupees per unit. The brokerage said it was awaiting management’s comments on accelerating export sales and margin stability. Export growth and margin trends stand out as two focal points in tracking the expansion’s results and operating performance. The next point the brokerage is waiting for is management’s clarification on the outlook for overseas sales and the extent to which margins will remain stable.