Steel Strips Wheels Ltd. (NSE: SSWL) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Unidentified Speaker
Dheeraj Garg — Managing Director
Analysts:
Unidentified Participant
Saurabh Jain — Analyst
Vikas Sharda — Analyst
Shashank Kanodia — Analyst
Hitaindra Pradhan — Analyst
Anand Kulkarni — Analyst
Shanskar Singhal — Analyst
Bhavesh Jain — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Steel Strips Wheels Limited Q3 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mishruthi Mohre from Anandrati. Thank you. And over to you, ma’a m.
Unidentified Participant
Thank you, Shubham. Good afternoon everyone. On behalf of Anandrati Resource, I would like to welcome you all to Q3FY26 earning call of Fieldstrip Deals Ltd. Today we have with us Mr. Dar, Managing Director, Mr. Rahul Kumar, Chief Financial Officer, Mr. Pranav Jain, BGM Finance and Mr. Pumeet Sharma, DJM Finance and Accounts. We’ll start our opening comments from the management team first which we will open the floor for Q and A. Now I’ll hand over the call to management team over to you Dheeraj.
Dheeraj Garg — Managing Director
Thank you everyone. Yeah, good afternoon. Hope everyone is doing well. I hope everyone had an opportunity to go through the financial results and investor presentation which we have uploaded on the stock exchange and our company website. So I start with the Q3 numbers. For Q3 FY26, our revenue stood at 1321cr compared to 1075cr in the same period last year reflecting a growth of 23%. This quarter was distinguished by record monthly sales in November and December which demonstrates the resilience of our diversified approach that caters to every category within the auto industry. Despite sluggish demand in the export market, we delivered strong performance supported by healthy domestic demand.
EBITDA for the quarter came at 128cr compared to 118cr, a growth of 8% in the same period last year. This performance is the result of our continued focus on premiumization, operational excellence and the strong partnership we have built with the OEMs. Together these factors have enabled us to sustain growth during the period. Now coming to our 9 month performance. Revenue for 9 month FY26 stood at 3708cr compared to 3195cr in the same period last year reflecting a growth of 16%. This growth was primarily driven by increased demand in the domestic market supported by government reform that have boosted consumption across the auto industry.
We remain optimistic that this momentum will continue across the domestic sector. EBITDA for the nine month grew by 3% largely due to A decline in our high margin export segment which was impacted by the tariff situation in the US. Profit after tax for the nine months stood at 138cr. Overall these results highlight the resilience of our domestic operation and ability to deliver growth despite external challenges in the export market. So the aluminium segment has been a standout performer for US over the last nine months and we anticipate this segment to further grow. Supported by recent GST reforms and RBI easing of finance costs which have boosted passenger vehicle sales in the country.
Alloy wheel have been a key driver contributing approximate 30% 7% to the total revenue and 20% in the volume terms. We expect this momentum to continue with alloy wheel increasing their share of overall revenue going forward now. Second one is our aluminium knuckle segment which continues to build strong momentum with adoption expanding beyond EVs into ICE Automotive. We are on the track to reach an annual capacity of 5 lakh units by the end of this year with a planned scale up to 11 lakh units next year. The business is currently operating at near full capacity utilization and has already delivered revenue of approximately 54cr.
Going ahead, our focus remains on broadening the customer base by onboarding additional OEMs where we are seeing encouraging progress now. Our two to three wheeler business delivered strong performance this quarter with healthy growth in both volume and value terms. This was supported by the implementation of GST2 reforms which has enhanced affordability of two wheelers and boosted household disposable income thereby driving a demand. Additionally, the festive season this year was one of the strongest in recent times further contribute to the robust growth in this segment. On export side, demand from the US market remains somewhat subdued amid the ongoing tariff related uncertainties.
While we continue to monitor development closely, our approach has been to stay agile and well positioned for a normalization in the demand once there is greater clarity on the trade framework. In parallel, we have continuously focused on diversifying our export base. Europe has emerged as a key growth market for us and now accounts for over 58% of our export revenue. We expect this diversified mix to remain intact throughout this year, reinforcing our diversified approach to global markets. Looking ahead, we remain confident of maintaining business momentum in the coming quarters supported by healthy order visibility across our key domestic segments such as tractor, aluminum wheels and commercial vehicles.
While our diversified presence across automotive segment positions us well to navigate the current volatility in the export market. With this we now open the floor for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Saurabh Jain from Sunidi. Please go ahead.
Saurabh Jain
Hello. Yeah, hello sir. So congratulations on the wonderful set of top line. For last couple of months we have done record turnover. So looks like domestic realizations have remained stable. But exports realization just, you know, if we do the back math. So I have witnessed a substantial jump during the quarter. So how do you see this and are these sustainable? What kind of trend do you see? And also if you can, you know, in within the question, if you can explain how rapidly and how smoothly we are able to pass on the increase in raw material prices.
Unidentified Speaker
I think I’ll take the last one question because this comes repeatedly in every. Meeting, once for all. I want to clarify that raw material. Is a pass through. So every three months there’s a change in aluminium prices that is set up by the customer based on the previous three months rates. So there is an absolute pass through. Maybe sometimes there’s a lag but that sort of average is out for the. Whole year so there’s no problem there. And also with a steel business it’s quarterly set and it’s a long old tradition so there is always a pass. Through on raw material. We cannot afford to have not a. Pass through on raw material. But coming back to your earlier questions, you see this year what has happened is that all our verticals barring exports have outshone. You have seen that in the industry. With the CB industry growing 16% year. On year for the nine months. And we see the aluminium wheel penetration of our products increasing with the newer launches this year. So that has been a big boost for us. Similarly knuckles, although it hasn’t done 100% of what our expectations were but still we are going to be touching close to 80, 90 crores turnover. Close to 80 crores turnover by the end of the quarter. So generally speaking and then we have tractors doing really well. Tractors again have been showing us a 12 to 13% growth rate. And so everything has done, even Pascar has done well. But of course as we all know Pascar steel business is a low margin business for us.
Now the missing point has been the exports business. Our steel business of exports has been compromised to the extent of 300 to 400 crore rupees from The American market. And that was a high margin business that brought the EBITDA per wheel to a very high extent. If you look at the fourth quarter of last year, last financial year we had the Highest EBITDA per wheel, 265 if I’m not mistaken or something around that. So this quarter we’ve done close to 260 and that is mainly on back. Of increased truck wheel sales, increased tractor. Wheel sales and a stupendous growth in the aluminum segment for us. In fact, last one of the previous calls that I attended, everybody was complaining about the second quarter performance and I told them very clearly because the capacity utilization has dramatically fallen in cv, dramatically fallen in other, even aluminum. We were not able to get that kind of traction. But with the GST reforms things have just changed.
Suddenly every segment is doing well, every domestic segment is doing well and exports is down. Now, on the exports front, as you have seen, my colleague Pranav mentioned that 58% of revenues are coming from Europe. So we’ve made good traction in the export market in Europe and that too OEM sales out of competitive reasons. I may not be able to tell you exactly what we have been able to achieve, but we are able to get a lot of business from the OEM space in Europe and that is going to grow and in fact going. To double this next financial year as we go on. So yes, the American hit has been there on steel wheels and hopefully it will go away in a sense that. In three to six months we will. See some resolution of this matter also. But this is something that we have to watch for.
But generally we are absolutely bullish. In fact, I remember saying that in April that this is the best time for us. But suddenly we had a big drop in the second quarter. But now I can say with the GST reform, this is a Pakka rally. And this will go on. And our capacity for CV wheel has. Just come at the right time. We have expanded our capacity in CV wheels in Jamshedpur and we are totally. Sold out in the CV segment, we. Are totally sold out in the tractor OTI segment. We’re completely 100% running there on aluminum wheels, we are completely sold out. So our capacity is 5 million. So we are about to reach 5 million. We are hovering around 4.6, 4.7, but we will hopefully hit 5 million wheel annualized in the month of March. So all in all, all segments are firing up well, except for our steel. Wheel business for the export market. That’s something that is not in our hands. And I Think margin profile going forward. As I said, we don’t talk in percentage terms. We talk in absolute number per wheel and that absolute number per wheel. As I said, in spite of exports of steel wheels not being there, we’ve reached 260. And one may also add that with the higher utilization, our conversion costs are coming down, our fixed costs are coming down. So you will naturally see an increase in margins in the month of January to March because we had this bull run from let’s say November, December mainly. But I think going forward January to.
March looks like Turnover Again, a 20%. Turnover growth increase from the previous quarter. I think we are looking at 1450. I don’t know how much did we this time we did.
Unidentified Speaker
1,320..
Unidentified Speaker
But still a strong performance. And that is because we are sold out. And we see that the next financial year coming forward will also see such. Balance because there is no lack of demand when we speak to OEMs. The OEMs are very excited about their. Business and they are excited about exporting. Cars out of India. So this is another phenomena that you must follow is that the OEMs are also exporting cars out of India. Just don’t look at the sales of cars within India. So again, I mean I just go. Back to my earlier comments that this is the best time but I think it’s even a better time now with the GST cards.
Saurabh Jain
Okay. But exports realizations were both in steel and alloy wheels are looking substantially up like more than 20, 25%. So is there any one off or this will sustain in the coming quarters.
Unidentified Speaker
What is your question regarding the margins.
Saurabh Jain
In export exports realization? Sir, both in steel and alloy wheels are looking substantially up.
Unidentified Speaker
So it is up mainly because of. I cannot spell out the reason but a high value diatom wheels are going. I just mentioned to you that we. Have grown a lot of business in Europe. So please get a hint from that. And that is the reason why you. See a per unit price going up.
Saurabh Jain
Okay. And my last question on the profitability.
Unidentified Speaker
Also the fact that Americans aren’t selling. Because their steel is obviously, you know, cheaper than aluminum. So you have to make, you have to make the connect.
Saurabh Jain
Okay. And sir, my last question is on profitability. Of course I understand you don’t talk about in percentage terms but just trying to understand despite a higher alloy wheel mix and substantial jump in the top line, our EBITDA margins kind of looking suppressed below 10%. Historically our peak EBITDA margins used to be 12, 13% but with more value addition pie and also you know substantially up top line the margins look under pressure. So do you think in the coming years we can expect previous peaks to be reclaimed?
Unidentified Speaker
Listen, the point is you are talking. About the wrong question. The question is that raw material price. Increases invalidate this argument. You know if the raw material price is going up by 10% and then. You expect the company also to grow. By 10% is not possible linearly. Obviously it will come down when the selling price goes up. And the margin per wheel is what. Is more important to us. And the margin per wheel has gone up from 240 in the last quarter. It has gone to 260 this quarter. Right. So obviously there is an improvement because there is a higher value, additional business done plus volumes have gone up. So similarly let us not look at 10% because the raw material prices have moved up for both aluminum and steel.
Saurabh Jain
Got it sir. Thank you. All the best.
Unidentified Speaker
As you heard this question, I hope. The audience gets it that let’s. Let’s not debate the whole thing again and again. Let’s look at how much I make. Per unit because I make you sell in units.
Saurabh Jain
Sure sir. Thank you. All the best.
Unidentified Speaker
Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on a Touchstone phone. The next question comes from the line of Vikas Sharda from NT Asset Management. Please go ahead. Yes Mr. Sharda, you may proceed with your question.
Vikas Sharda
Yeah hi. Thank you for the opportunity. I have a couple of questions. One is that you have announced the capacity expansion in alloy wheels and aluminium nickels. So what would be the total capex you’re looking for? Say FY27.
Unidentified Speaker
Okay, so let me clarify one thing. We’ve already completed the capex for 5 million wheels. So in March everything will be commissioned. Fully with all the extras that we. Need to have for the basic capex. So that capex is over. Now we are doing another capex in Bhuj where we had bought the AMW factory. And we are utilizing the building and the land and the development around it. We are saving close to 100 crores. In capex cost there are. And we are putting up a new facility to make aluminum wheels as well as aluminum knuckles. So the total expansion cost will be around 420 crore rupees.
Vikas Sharda
That is for the expansion.
Unidentified Speaker
Yeah.
Vikas Sharda
So and including the maintenance capex how much will it be total for FY27.
Unidentified Speaker
You can add 40cr for brownfield maintenance capex. But there will be other capex with regards to. With regards to maintenance only. That’s it. Maintenance capex is about 40 crores, right? So 420 plus 40. And let me tell you one thing. That this investment is meant for the. Export market and also for the Indian market. But this is a unique investment that we are making in aluminum wheels. Because it will cover every category of. Aluminum wheels sold in the world. So it will be very comprehensive project and we’ll be looking at the entire world region. For these products. Similarly for knuckles we are expanding for our existing customers in India but also for the export business in Europe. We are very close to making strategic deals with European customers regarding aluminum knuckles and other related aluminum products. I think there is a question regarding this also.
How are we diversifying? So within the LP we started off with the low pressure die casting business with wheels. Then we got into counter pressure die casting with knuckles. So similarly there are other products that. Can be made with these technologies. And we are investigating and aligning with our customers to manufacture them and send them abroad. So it’s going to be a contract. Based with the European customers.
Vikas Sharda
Understand? So next year 420 +40 crore. And how much would it be for FY26?
Unidentified Speaker
In aggregate 26 will be around 225-250cr. Okay. For the next year.
Vikas Sharda
Sorry, could you repeat that?
Unidentified Speaker
This will include some part of the total CAPEX which I have already told that 420, 420cr of the CAPEX which we are doing for alloy wheel and knuckles. And this will be broadly certified in the to three years. Some of the part which will be added in FY26, some will be covered in FY27 and remaining 10% or 20% will be covered in FY28.
Vikas Sharda
Got it. Makes sense. And so second question I have is that what is your cost of debt? Because when I look at your PNL now your interest expense is running at almost 120 crore annualized while your gross debt is 900 crore or so. So is there any additional borrowing cost or some finance cost part of it. And in general what is your borrowing cost?
Unidentified Speaker
The total overall debt cost is around 8 to 8 and a half percent. Right? Average cost is this much. And there are some of the factoring lines are there? Right. And that factoring is adjusted in the debtors. There are debtor factoring limits which are there. And in the balance sheet same is adjusted against the debtors.
Vikas Sharda
Understand? Okay. So that increases the total number yeah. And finally the one question that you know. Hello. Yes. So one question. In your MHCV segment you report your market share and it has come down YY and it shows that for Tata Motors your share of volume has gone down for share percentage share has come down for Steel Wheel. So any particular points to highlight that.
Unidentified Speaker
I don’t think for medium heavy commercial. Vehicles our share has gone down. I don’t know why this projection has. Come to you but overall commercial vehicles, you know there are light commercial vehicles that we don’t sell into but for medium heavy commercial vehicles I don’t see our share of business come down last. What I saw was about 42%.
Unidentified Speaker
52%?
Unidentified Speaker
Yeah, 52% on CV. So that I don’t think has changed much.
Vikas Sharda
If you look at say last year third quarter it was 61%.
Unidentified Speaker
It can vary from quarter to quarter but I think for the whole year you might want to look at that. 7% drop is not possible because we are in fact getting a bigger market share than the official market share that the customers have offered us. So maybe there is some error in our reporting here. I will double check this aspect. But clearly, I mean our truck sales. Are up 16% over last year so we have not lost market share. I don’t think the industry has grown significant 16%. Yes.
Vikas Sharda
So you can look at the numbers. In the last year third quarter presentation it was 61%. So it shows it wrong. But yes, it could be an error.
Unidentified Speaker
It could be an error.
Vikas Sharda
Thank you.
Unidentified Speaker
But as of now there is, there. Has been no loss of market shares. For medium heavy commercial vehicles that I’m very sure about. Well that’s a bread and butter. That’s a really good business and we don’t market.
Vikas Sharda
All right, thank you.
Unidentified Speaker
Only now this 52% is for both MSCV and LCV and this. So, so, so the total share is 52% if you include both MSCB and.
Unidentified Speaker
LCV but only medium heavy commercial vehicles. What is a SOV? Yeah, it’s 62%.
Unidentified Speaker
It’s medium commercial overall is 52%.
Unidentified Speaker
We just had includes.
Unidentified Speaker
I said include overall it’s 52%. Last think 362.
Unidentified Speaker
I think we’ll come back to you.We’ll clarify this. I think we’ll clarify through, through, through.
Unidentified Speaker
So through SDA will clarify this aspect. I’m sorry for this confusion.
operator
Thank you. The next question comes from the line of Nishita from Safar Capital. Please go ahead.
Unidentified Participant
Yes, hello. Am I audible?
Unidentified Speaker
Yes, please go ahead.
Unidentified Participant
Yeah, so I had this Question on the capex that you are going to FY27 in B. So what is, what is the total capacity going to be in that plant?
Unidentified Speaker
So the capacity will be 1. 1 million in the aluminum wheels business and 1 million in the knuckles business. 1.2 knuckles. 1.2. Sorry 1.2 in the aluminum wheels and. 0.6 in the knuckles. Okay. This additional capacity, it will be the additional capacity so 3/4 of a million. In knuckles or 2.66 and 1.2 million car wheels.
Unidentified Participant
Okay. So the total capacity like with the existing plant and the new plant the. Capacity will be 6 point. Right?
Unidentified Speaker
So it’ll be 6.2 for aluminum wheels. And be 1.1 for knuckles.
Unidentified Participant
Okay.
Unidentified Speaker
Yeah.
Unidentified Participant
And so how fast will we be able to like ramp up this facility?
Unidentified Speaker
All these projects will start before Diwali this year. This calendar year.
Unidentified Participant
Okay. And what will be the peak revenue?
Unidentified Speaker
I think you can. The peak revenue would be about, let’s. Say. 600 crores from the wheels business. 607. Because we’ll do. We’re doing a lot of value add. So you can take it close to 700 crores of let’s say 600 crores. And for the knuckles it should be a business of let’s say about 200 crores.
Unidentified Participant
Okay. Okay. And how are we going to fund this capex?
Unidentified Speaker
It will be a mix of debt as well as our internal accruals. So we foresee a very robust a beta accretion going with this fourth quarter and the whole next year. We have very bullish projections. So I think a little bit of. Debt will come through depending on when. We need the cash flows. But you can say about 200 crores. Net debt would be added perhaps less around that number.
Unidentified Participant
Okay. Okay. And so I just wanted a clarification. You mentioned that our EBITDA per yield is 260 rupees.
Unidentified Speaker
Which one? Yes, the current quarter. I think what my calculation tells me is 260 rupees.
Unidentified Participant
Right. So that’s for aluminum and steel wheel both.
Unidentified Speaker
Yeah, it’s a product mix. Everything is normalized on this weighted average.
Unidentified Participant
Okay, understood. And so going forward how do we. Where do we see this number? It’s a good question being the same.
Unidentified Speaker
Oh listen, so last time when I. Spoke I said that we. When we did 265 I was very bullish that we would hit 270 immediately in this financial year. But unfortunately because the volumes dropped in the second quarter, it didn’t fructify and the trump tariff started. So The Trump tariffs really spoiled the party for us. But notwithstanding that party getting over, we. Have found a lot of business value. Addition in India itself and we are. Now, as I said, utilizing 100% of our capacity. So I think 270 should not be far. We are hoping that in the fourth quarter we will hit 270. But for next year we can come back to you with the numbers that we project because we want to, you know, we want to give it some more time to see how the market develops. But clearly we are looking at a 20% revenue growth next year. So next year we are looking at. A turnover thousand crores easily. So that’s very visible without the Trump tariffs getting over. If the Trump tariffs get over then. We can hit 6,500 crores because there’s. A lot of things that come into play.
You know, we get a bigger share of business in America because our competition in Thailand and in Vietnam is coming under investigation for circumventing duties. So if these two things happen, that those guys get caught up in that. Trap and suddenly tariffs with India open. Up, then we can hit 500 crores. Additional revenue from America. So in nutshell, we can hit 6500 crores next year. But 6000 crores is very visible and with better margins. So now you have to coming back. To your margin question. As I said, 270 is achievable in this fourth quarter of this financial year. And for the next year I think. We’Ll come back with numbers to you, but they will be definitely better than 270. So our entire order book for aluminum is sold out for the next two years. So it’s not that we will lose business. I mean the Indian market performs the. Way it should and the export business that we have tied up continues to grow. We should have no problems next year. This is I think easily possible without the new revenue coming from Bhuj facilities.
Unidentified Participant
Like you are suggesting that 6,000 crore we can achieve besides the booch revenue.
Unidentified Speaker
Visible from the existing assets I have in right now.
Unidentified Participant
And how much do you envision that the Bhuj facility will in FY27? Is it going to be significant?
Unidentified Speaker
Not very significant. You know, we are going to start it around Diwali time and then you. Know, customer validations will take time, three to four months. So we are not counting much revenue. But I still feel that there is. A chance of an upside there because. If the market is doing really well, then the customers will try to approve the facility real quick and get on. With their business with Us. So right now we are not including that in our forecast. But clearly there is a possibility of. An upside from that. From that level. I mean from that. Those assets.
Unidentified Participant
Okay, understood. Thank you so much.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Sashank Kanodia from ICICI Securities. Please go ahead.
Shashank Kanodia
Yeah, hi Grafton. Sir, just wanted a set of clarification. So our existing allowable capacity is 50 lakh units. And we are over and above adding terbit units right at the backyard. Right. And the aluminum materials. Our existing plan is to take to 10 lakh units. And this additional units. 6 lakh units for the addition. Right. So total goes to 10 additional.
Unidentified Speaker
We are right now at 5 lakhs. So that will make it 1.1 lakhs. It’ll make it 11 lakhs.
Unidentified Speaker
1.1 million. But ultimately we will go into the next financial year if you want to add. But right now mesana facility is 5 lakhs. And the Bhuj facility is 66.6 lakhs. So 6 lakhs. So 11 lakh total.
Shashank Kanodia
Okay. Okay. So okay. So aluminum wheel will become 62 lakhs and knuckles will become 11 lakh. Okay. Okay. Secondly, sir, you know in the initial con calls a couple of years back you mentioned that the EBITDA per deal in emblem segment is double or twice the steel bill. Right? Is that assumption still holds true?
Unidentified Speaker
That’s a great question. It depends on which market are we looking at. If we compare domestic market today and. If we compare the aluminum and the steel together for the car business. Yes, that still is. And that’s really what is driving our margins up. I mean as I told you the steel wheel business is really not giving. Us that much margin. But I also mentioned that in the next financial year 26, 27 things should start improving. So yes, there will be an increase in margin from the domestic supply of steel wheels in India. So that’s a good point. Thanks for reminding about that. That’s going to happen.
Shashank Kanodia
So sir, if that is the case, you know, if I go with the share of revenue that you share between steel and alloy wheels. So you are roughly making roughly 450. 450 rupees per alloy bill. Right. As I picked up a unit.
Unidentified Speaker
Listen, I cannot mention anything to you. Because I don’t want to reveal my. Trade secrets to you. You are a good mathematician. All I would say is that.
Shashank Kanodia
No sir, this is the point I’m trying to come is that you seeing 300 crores of capex for 12 lakh units. Of alloy wheels. Right. Adding such kind of EBITDA per unit, we’re just deducting 50 crores of EBITDA and if I deduct the depreciation that comes to around 35 crores of EBIT. So 300 crores of investment is just giving me 35 crores of EBIT. That is subpar investment, don’t you think so 12% ROCE.
Unidentified Speaker
No, no. I think we did our calculation on. This and we are getting our payback in seven years. Seven years we’re getting our money back. And we, and we are basing it on different EBITDA margin that you’re assuming. Because a lot of this is going to be export and these are going to be.
Shashank Kanodia
It’s not very interesting, right. 17 gives you 14% kind of IRR rate. Just 14%. Right?
Unidentified Speaker
Yeah.
Shashank Kanodia
You’re saying that you’re saving 100% capex on this print.
Unidentified Speaker
It’s very expensive. You’re absolutely spot. Right. I mean look at the other companies. Who are in suffering. I mean today you want to set up an aluminium wheel plant. It’s very expensive. It’s atrociously expensive. Nobody will be able to get into this business. And obviously we are assuming a higher margin than 450. But on a conservative level we said it’s seven years but it could be faster also depending on the value chain. That we lag onto. That was on a very conservative basis that we did an internal calculation. But what we are currently getting as. EBITDA is more than what you have calculated and it will be much more in than 450 rupees.
Shashank Kanodia
The one observation, you know, in FY22 we make something like 3500 crores of revenues and we make 200 crores of hat. As we end in FY26 we are at 5000 crores of revenues, roughly 1.5x of that base and we are still at 2 lakh crores of pack.
Unidentified Speaker
In 22 there was an anomaly. There was a gain of one time windfall gain of 60 crores from steel appreciation. So that is basically what has, you know, caused this confusion. But if you take that out, we are steadily growing and that we have pointed this out earlier also.
Shashank Kanodia
So we have bought really, you know, a 50 crores of kind of quarterly pad. It’s been a difficult task for us to really up our game from that kind of run rate. It’s been quite so many quarters that you know we are hopping at 50, 55 crores of quarterly pack. So when do you see that kind. Of trajectory being broken in the quarter.
Unidentified Speaker
You should see a breakout. As I mentioned to you, this is. The first time that all my assets are being utilized 100% barring a small. Portion of the export market and we had no factories on that 100%. We are running at more than 100% utilization. That’s the kind of demand. We have never seen this demand earlier. It’s our misfortune that the Indian story never really took off the way it should have taken off after Covid. One year after Covid. One and a half years after Covid. It’s only after GST cuts that we see that yes, there’s a big change now.
Shashank Kanodia
And sir, your view is on the CV cycle. Has it kind of now kick started and we’re seeing next two years of good CV volumes.
Unidentified Speaker
As I said, we have enhanced our CV production and bang on time we are selling those that production. So that’s why the revenues are going up. That’s why the revenues are going up. I mean if you’re going to hit 1500 crores, that’s our target to hit 1500 crores per month on average from April onwards. We might just hit that rate annualized in March itself. And think and you just wait for the exports to open up. Then there will be no excuse, no argument to. Discuss. Everything will show you a very increased margin right from PAT to ebitda.
Shashank Kanodia
Lastly, at the senior management level do you guys ever contemplate that the auto index is up 20% last 12 months. All the auto stocks are given good generation for the investors. But we are one of the few people who have been a leggard. So is that something which concerns the top management of the promoters?
Unidentified Speaker
Of course we are concerned and wondering. Why can’t people read the good news? Everybody sold us off because the American tariffs happened. So as a result the sentiment just broke. But this is what we want to tell the participants in the market that. We are not depending. We have surpassed our best performance in spite of losing exports to the us. This the market should see. And we had a very terrible second quarter and that really broke the momentum. Along with the tariffs. When the performance speaks for itself, you will see the results. I don’t see any reason why they would question our growth trajectory had we. Not done this growth. We have beaten the industry by the way. We have beaten the industry growth in this quarter. So if the market is not understanding then I think the market knows best. So I’m not going to hanker over that. I can only talk to you and. Explain to you my business.
Shashank Kanodia
Sure, sir. Thank you so much and wish you all the best.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Hitendra Pradhan from Maximal Capital. Please go ahead.
Hitaindra Pradhan
So thanks for the opportunity. Just wanted to get some things clear. You mentioned that you know, the exports. Were compromised by 300 to 400 cross. And you foresee 500cr of additional revenue from us when the tariff situation normalizes.
Unidentified Speaker
And the investigation or competition is, is. Is sort of brought to a conclusion in favor of dumping of putting taxes on them. Yes, of course.
Hitaindra Pradhan
Okay, so what is the like you know, your run rate annual, you know, U.S. revenue. I mean as for my calculation.
Unidentified Speaker
I t’s still there but I would have to. Look at the number. We will give that number to you through sga. We’ll give that number to you. Revenue to us.
Hitaindra Pradhan
Yeah, you mentioned the degrowth numbers but these are the five minutes here that. You’Re mentioning of the current revenue you. Are generating from us. Or it is the cumulative number you are mentioning.
Unidentified Speaker
Exactly. Exactly.So it’s not a big number to. The US but if, if things open up the way we think they should open up because I don’t know how long the tariff situation will be in limbo. Maybe three months, six months, we don’t know. But we are hoping by end of March things should happen. And so next financial year is a clear home run for us once these tariffs are removed.
Hitaindra Pradhan
And it will be more like, you. Know, taking markets from the competition from Thailand and the other.
Unidentified Speaker
Vietnam because they have no choice. It’s only India. It’s only in India.
Hitaindra Pradhan
And so these will be mostly like lo. And where the EBITDA power will be.
Unidentified Speaker
Let’s not confuse. It’ll be. I have lost market share in steel wheels in us. I’m going to regain that back and a little bit more in steel.
Hitaindra Pradhan
Okay. In steel wheels. Okay, thank you. That’s all from us.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Anand Kulkarni from Front Wave Research. Please go ahead.
Anand Kulkarni
Hi. Thank you for the opportunity. I had couple of questions. First on our capacity addition. If I look at our post quarter. Syno presentation, we were going to take our capacity for steel from 205 to 270 lakhs which is now curtailed to 210 lakhs. Also another capacity addition is sorted from 53 lakhs to 50 lakh units. Now out of this 65 lakh units.
Unidentified Speaker
Let me clarify one thing. One second. So that capacity that you saw in the presentation included the facilities in Bhuj and those facilities are now being sort of scrapped and we are putting in newer factories there. So obviously that’s how we have curtailed. Our production of you know, the projection, I mean the capacity of our group for steel wheels.
Anand Kulkarni
Okay, so out of the 65 lakh capacity addition the current 12 lakh and. 6 lakh is going for alloy wheels and aluminum levels. So what about the remaining 47 lakh capacity? Is there any capacity?
Unidentified Speaker
Those sheds are still available. Those sheds are still available to us and. But there is going to be no production from those. I mean we have, as I said in my previous calls also that we have. Can we not taken away 100 crores. Of equipment already to our group companies? That’s why you see the expansion in Jamshedpur. That’s why you see the expansion or you know, some additional machinery in our Chandigarh plant and also in the Chennai plant. So hundred crores worth of equipment already we have used. Right. Hundred crores of capex we have saved from the, from the buildings and the roads. So that’s two hundred crores. I paid one hundred forty crores for this. And I paid one hundred forty crores for this.
Not only just for the assets. I basically stopped the Chinese from taking over this asset in India. So both the things have come through with it. I have earned my principal plus my interest already back from this purchase of BMW. Yes, on the paper the capacity comes down because that capacity was potentially there. I couldn’t have denied that. That was the paper that we signed. With the liquidator that this is the capacity of the facility and we saw that this had the potential. But obviously there is no market for such a capacity and that capacity needed. A lot of money to restart it. So we decided that we are not. Going to use these machines anyways. So we are scrapping them and utilizing the network, the infrastructure of the site.
Anand Kulkarni
Just one last question. I. Had we been able to reroute any. Revenue through European trading arm to us. Or any other country?
Unidentified Speaker
No, no we don’t. We can’t do that because duties are duties. Whether it’s a European trader buying a. Product for us or we selling directly to the US There is no possibility to evade duties or to circument duties in any way.
Anand Kulkarni
Thank you and all the very best.
operator
Thank you. The next question comes from the L of Sanskar from IR Capital. Please go ahead.
Shanskar Singhal
Hello. Yeah, so I have a couple of questions. First of all can you. Are we adding any. If you are saying that we are operating at 100% capacity in aluminium segment if I’m assuming so is there any capacity expected to come on stream in the next quarter or all the 1.2 million will come in the next year.
Unidentified Speaker
So as I said we will hit. The annualized rate of 5 million in. The month of March. So you can see that we will produce more than 4 lakh wheels in the month of March. And that will continue till the next facility comes in. And. So the next facility will come. In by October and hopefully by December we can start commercially supplying wheels. We have a very strong order book so let’s see how fast the customers approve our facility. But you’re right, there’s going to be. No more addition of capacity within the existing network.
Shanskar Singhal
And would you be adding any on steel I’m assuming given we are at 75% and is it expected to move up given the demand that you are seeing within the domestic segment?
Unidentified Speaker
That’s a great question. So I think there will be some. Brownfield expansion for the. For a paint shop for a tractor business but and that’s going to be around close to. I think that will all be done. Within this year’s capex that we have budgeted for. So I don’t think next year there will be anything. Maybe there’s a small paint shop that. Toward the end of. That’s about 10 crore rupees. 1015 crore rupees, not much more than that. I think all the expansion we’ve done in Jamchedpur has come to fruition in January we are going to have a. Record production of truck wheels and we. Will have record sales of truck wheels.
By a big margin and I think steel wheels. We are suffering because of exports in Chennai to America. But Chandigarh facility is fully sold out. Because of great tractor run and also the general pull for the small car. From Maruti is good. So we are able to fully utilize. Our facility and we have no intention to add capacity here. In fact we have done all our. Expansions for even scooter wheels. We have added, we might add a. Line again these are on drawing board. So I think maybe next quarter I. Can come and talk better about that. But yes, things are looking very balanced and most of our expansion has happened. But there will be some expansion in. A another rim line for example for. A Chandigarh facility because we are getting. Traction for bigger wheels now and since tractor is growing this line is required. So again this expansion will cost not more than 20 crores or 15 crores let us say. So we’ll come Back with this new. Capex for next year. But for now, whatever we’ve done this year has started to play for us. We are able to use those assets to produce.
Shanskar Singhal
Understood. So in totality, like what can growth do you expect within the steel segment specifically for the Next, let’s say FY27 or even also next quarter we did a quick check.
Unidentified Speaker
I mean here we concluded turn of 6,000 crores. I don’t have the breakup, but I. Think 20% majority of this growth is. Coming from tractors, trucks and aluminum. So aluminum would be number one. Then it will be followed by trucks and tractor or trucks and then tractor. So these three segments are going to. Be the reason for the highest, I mean 20% growth. So among steel wheels you can just count tractor and truck and aluminum you. Can count aluminum wheels for pascals.
Shanskar Singhal
Understood. And apart from steel segment in the export market improving, what are the other drivers for your EBITDA margin improvement that you are guiding?
Unidentified Speaker
And as I mentioned one of your. Colleagues earlier, that there is a better realization in the high volume Pascar business. For us because we have been able. To negotiate input cost increases from our. Main customers and even the newer programs. We have bought at a newer price. So there will be an increase from that aspect. Plus the tractor steel wheel business is. Doing phenomenally well and it is produced alongside the Pascar line. So that is adding to our capacity utilization there. And so that’s going to improve. I mean if the tractors do as. Well as they are talking about, then. We might see another 10% growth next year. And that is like stupendous. And for that we will need a paint shop to sort of paint more wheels. But that’s also a work in progress for us. We should be able to increase our market share. Let me put it this very clearly and let people record this that we will be able to improve our market. Share across all the domestic segments. Profitable domestic segments.
Let’s put it this way, all the profitable segments and namely they are truck wheels, tractor wheels and aluminum wheels. So yes, you will see market share increase as well as margin improvement because of the higher valuation wheels that we sell. In addition, because growth is coming from. Tractor, truck and aluminum wheels. So please remember this repeatedly about us. That if the growth is coming from these segments, it means more EBITDA per wheel.
Shanskar Singhal
Understood. Okay, thank you.
operator
Thank you. The next question comes from the line of Bhavesh from DV Investment Advisors. Please go ahead.
Bhavesh Jain
Hello sir. Am I audible?
Unidentified Speaker
Yes, you are.
Bhavesh Jain
Yeah. So just I had this question regarding the seal business. Like Barring tariff part. So our steel business has been languishing from like past six, seven quarters. And then in the past we have mentioned that we have signed some new contracts and we have renegotiated the pricing part. So like what is the status on those contracts now? Currently.
Unidentified Speaker
So point is that as I mentioned to you earlier in the previous calls. That we deliberately left out business from. Maruti for car wheels. And because the margin was too low. To work for us. And that is the right strategy now. Because right now we are fully sold out and we are sold out with. Better margin wheels, namely the tractor wheels. So I don’t know what your question was. I mean I didn’t follow the gist of the question.
Bhavesh Jain
So I just wanted to know the reason. Like in the past our steel business was languishing. And then we stated that we have signed some new contracts to compensate for the same. So I just wanted to know that what are the status of those contracts now?
Unidentified Speaker
I don’t know what contracts are you alluding to? I can’t take that.
Bhavesh Jain
No, some pricing related agreements we renegotiated with the customers.
Unidentified Speaker
There has been an increase obviously. Yes. We have negotiated with two important customers, customers of ours and they have given us a price increase. And it’s getting reflected slowly every year. Next year is going to be more, more effective. But this year we got some increases already. Yes, that is true. That is true. But the business itself is languishing from. The past car side. Because we don’t want to choose businesses. That don’t pay us a certain EBITDA per wheel. But we are lucky to have a. Growth in the tractor segment. And that’s a well paying segment for us. The same lines that produce car wheels. Can produce tractor wheels also.
Bhavesh Jain
Got it. Thank you.
operator
Thank you. The next question comes from the line of Madhurati from Counter Investments. Please go ahead sir.
Madhur Rathi
Thank you for the opportunity. Sir, I’m trying to understand. When we say that we have done. We have gone through pricing negotiations with our customer. There has been industry consolidation. Our aluminum vehicle wheel share has increased. But still in FY24 our margin per wheel was 260 rupees. Right now we are at 270. Maybe in Q4 will come to 270 rupees. So what is the where is this lag coming from? Has the pricing power not with us?
Unidentified Speaker
The lag has come from Trump tariffs. Please try to understand this. Our export business has been compromised to three to four hundred crore rupees. And that was the only business that. In the steel segment, in the car segment, space was giving us the bread and butter and the jam, everything and that evaporated. But luckily we picked up and grew in the aluminium segment, we grew in. The truck segment and we grew in. The tractor segment thanks to the GST reforms. So this is a recent phenomena. Don’t start thinking that we did something wrong. In this period the whole industry was suffering. And yes, we have been able to increase prices with the Pascar wheel business. So overall the profile of the margin is improving. The laggards are becoming are beginning to run better. There is obviously as we grow in. Volume in the aluminium segment, the margins.
Are coming under pressure because there’s competition. But at the same time with higher volumes we are able to taper off our fixed cost. So you will see performance. Now the performance has just started since let’s say November. Three months of solid and every month is a better performance than the previous month. And you will see that when we. Hit 500 crores in the month of. March, you will see from where we were last year we were at 360, 370 if I recall from 360, 370. 70 to 500 without exports. That is something that you must applaud. And understand where the company is strategically headed.
Madhur Rathi
Right? So there’s 300, 400 crore business from us. This was on annual basis or. Right? So just one question. So if I consider all these things, if I consider the USRF issues be they are present for the next few years. So when can we expect to reach a 300 rupee EBITDA per wheel? Considering the customer makes change, Considering the product exchange.
Unidentified Speaker
I think you asked a great question to me. And believe me, you come in the next conference call after this quarter is ended. You come and I will give you some projections. I mentioned to your colleague also earlier. That we’ll give you come back with projection. But I promise you that this 300 rupees is also my dream. And we are very close to that dream. Give me three months of this month, this quarter to sort of understand our. Product mix cost mix and product mix and then let me extrapolate as to. What we are looking forward to in. The next 12 months after this quarter ends. But yes, that’s not something that is unreasonable to ask. 300 rupees is something we should expect this company to do basis the fact that we are utilizing our capacities to the full and there is big demand. For our value added products.
Madhur Rathi
Got it. So just a final question sir. What would be a greenfield cost for any player to set up this 1.2 million wheel capacity that we are setting up at the AMW location.
Unidentified Speaker
I think if you look at industry, I don’t need to give you names. You can go and check other industry companies that make these investments and nobody will come less than 500 crores or 5, 600 crores. I think the latest investment is at close to 800 crores for the same volume. You have to check. Please check. Ours is the lowest cost of investment. In the whole industry. Across. You can check across the company. You can check the balance sheets of all our competitors who do aluminum wheels. You will find out where we stand.
Madhur Rathi
Right. We have space at the AMW location for further capacity additions for aluminium.
Unidentified Speaker
We have plenty of sheds, plenty of land and very good access to the port. We will look at newer things and we have some things in our mind but that will take some time. But for sure. Please join the call next quarter and you should ask the first. You should be the person asking this question the first time.
Madhur Rathi
Thank you so much and all the best.
Unidentified Speaker
Okay, thank you. Thank you all. I think it’s time for the meeting now.
Madhur Rathi
Yes. Okay.
operator
Thank you.
Unidentified Speaker
Yeah. Yeah.
operator
Ladies and gentlemen, in the interest of time that was the last question. I now hand over the conference over to the management for closing comments. Thank you. And over to you sir.
Unidentified Speaker
Okay. I think closing comments are the same. As I told you in April sometime. Last year that this is the best. Time to do business for us. We have a full order book and. We are cost optimizing our facilities. We are investing money in digitalization, we are investing money in AI and we will be very future ready in next one year. I think these are the this theme. I think the investors should ask me when I meet next time with them and we will definitely now we have no reason to complain now the orders are there. We are able to execute the orders. The capex has been done. Everything is all set for a home run. Thank you all. Thank you for coming today. Bye bye.
operator
Thank you on behalf of Steel Strips Wheels limited that concludes this conference. Thank you for joining us and you may now disconnect all lines. Thank you.