Vardhman Special Steels (VSSL) Q1 26/27 earnings summary

Executive summary

• Achieved strong quarterly growth in production, revenue, and profitability, driven by sustained demand, improved efficiencies, and price increases from OEMs.

• Strategic investments in new manufacturing equipment and solar power have enhanced operational capabilities and reduced energy costs.

• Focus remains on long-term growth through capacity expansion, diversification into non-automotive steel, and forging/machining projects in partnership with Aichi Steel.

• Unaudited financial results for Q1 FY27 were approved by the Board, with an unmodified review report from statutory auditors.

Financial highlights

• Q1 FY27 revenue from operations rose 12.06% year-over-year to ₹48,600.70 lakhs; PAT more than doubled to ₹4,118.57 lakhs.

• EBITDA for Q1 FY27 was ₹68.29 crore, up 73.63% year-over-year; EBITDA per ton was ₹10,764.

• Sales volumes for Q1 FY27 reached 59,103 tonnes, up from 55,574 tonnes in Q1 FY26.

• Basic EPS for Q1 FY27 was ₹4.26, up from ₹2.43 in Q1 FY26.

• Board recommended a dividend of ₹3.50 per share for FY26.

Outlook and guidance

• Targeting sales volumes of 250,000-255,000 tonnes for FY 2027 and over 270,000 tonnes for the following year, with potential to reach 290,000 tonnes if environmental approval is received.

• Plans to execute a long-term growth strategy, including a 500,000 TPA greenfield special steel plant and forging/machining facility.

• Diversification into non-automotive steel, die steels, railway steels, aerospace, and nuclear steel is planned for the long term.

• Committed capex of ~₹2,600 crore for FY26-30, with peak debt/equity ratio maintained at ≤0.75x.

• The company continues to benefit from government incentives under the Industrial and Business Development Policy 2017 for its expansion project.