Steel Str. Wheel Q1 FY27 Results (NSE: SSWL)
Signal: Margin expansion
The read
Q1FY27 revenue of ₹1,509.82 Cr marks a strong start vs FY26 exit, growing 27.2% YoY with operating margin expansion to 6.2% (+130bps YoY) — the 2nd consecutive quarter of double-digit profit growth. PAT growth of 47% YoY was driven by volume operating leverage and controlled costs. The filing shows no exceptional items or one-offs, and no equity dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,509.82 Cr | 27.2% | 2.4% |
| Net profit | ₹69.45 Cr | 47.0% | |
| EPS | ₹4.42 | ||
| EBIT margin | 6.2% |
P&L walk
Revenue growth of 27.2% YoY driven by volume pickup across truck & tractor segments; gross margin contracted 310bps YoY due to higher raw material cost, yet operating margin expanded 130bps on strong operating leverage; PAT growth of 47% YoY was aided by lower finance cost and higher other income.
Key positives
- Consolidated revenue ₹1,509.82 Cr, +27.2% YoY — fastest quarterly growth in recent periods.
- EBITDA margin expanded 130bps YoY to 6.2%, driven by operating leverage.
- Consolidated PAT ₹69.45 Cr, +47.0% YoY — strong double-digit growth.
- Finance cost ratio improved 30bps YoY.
Key concerns
- Gross margin (COGS + inventory change) was 65.3% vs 65.0% last year — raw material cost pressure persists.
- Effective tax rate increased to 25.7% from 22.7% YoY, though still below statutory.
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