Vardhman Special Steels (VSSL) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 delivered record sales, with higher volumes, improved realizations, strong demand and operating leverage supporting growth; benefits from recent capacity investments also contributed.

• Forward integration into forged components, a greenfield special-steel plant and diversification beyond automotive are advancing, while rising project costs and financing plans remain under review.

Financial highlights

• Q2 revenue from operations was ₹600.05 crore, up 38.81% YoY; EBITDA including other income was ₹83.86 crore, up 48.48%, and PAT was ₹52.49 crore, up 51.88%.

• Q2 PBT was ₹70.56 crore, up 51.73% YoY; basic EPS was ₹5.43 versus ₹3.61. Rolled-product sales volume reached 70,440 tonnes versus 55,536 tonnes YoY.

• H1 FY27 revenue was ₹1,086.06 crore, up 25.41%; EBITDA including other income was ₹152.15 crore, up 58.80%, and PAT was ₹93.68 crore, up 72.02%.

• H1 PBT was ₹125.96 crore, up 71.91%; basic EPS was ₹9.69 versus ₹6.04, and rolled-product volume was 129,544 tonnes versus 111,109 tonnes.

Outlook and guidance

• FY27 sales outlook is ~260,000 tonnes, with management expecting to exceed its initial forecast; Q2 is seasonally strong due to festive inventory build, and demand outlook for the next quarter is good.

• Ongoing EBITDA guidance remains ₹9,000–₹12,000 per tonne; current performance is at the high end, but Q2 levels are not considered sustainable.

• Greenfield steel-plant completion is targeted for September 2029, with stabilization by March 2030; forging Line 1 commissioning is targeted for Q3 FY28, with later lines planned through FY32.

• FY35 ambition is ~1 million tonnes of steel capacity across eight sectors, with ~70% automotive and 25–30% non-automotive revenue mix; meaningful non-auto P&L contribution is targeted in 5–7 years.