Vardhman Special Steels (VSSL) Q3 25/26 earnings summary

Executive summary

• Achieved strong sales volumes in Q3 FY26, with 55,141 tons sold, up from 52,692 tons year-over-year, despite lower average prices due to raw material cost declines.

• Q3 FY26 saw stable revenues with significant YoY growth in EBITDA (34.28%) and PAT (56.53%), driven by operational efficiencies and higher other income.

• Major CapEx projects underway: forging plant (INR 475 crores, commissioning July 2028), new steel plant (500,000 tons capacity, commissioning July 2029), and reheating furnace (commissioning March, benefits from May).

• Solar power project and additional investment in Sone Solar Private Limited to reduce carbon footprint and power costs.

• Launched a closed-loop steel recycling initiative with Maruti Suzuki, advancing the green steel roadmap.

Financial highlights

• Q3 FY26 revenue was INR 430.54 crores, up 0.88% YoY; total income reached INR 443.72 crores, up 2.3% YoY.

• Q3 EBITDA rose 34% to INR 56.47 crores (INR 10,241/ton), but adjusted EBITDA (excluding non-operational income) was INR 9,263/ton.

• Nine-month PAT reached an all-time high of INR 88.04 crores, up 20.02% YoY.

• Basic EPS for Q3 FY26 was INR 3.48, up 32.32% YoY (adjusted for bonus shares).

• Revenue from operations for the quarter ended 31 December 2025 was INR 430.54 crores, compared to INR 426.77 crores in the same quarter last year.

Outlook and guidance

• Sustainable EBITDA guidance: INR 8,000–11,000/ton for next year, up from INR 7,000–10,000/ton this year.

• Steel production expected to rise from 225,000 tons this year to 270,000–275,000 tons in three years, with long-term potential of 720,000 tons finished steel post-expansion.

• Strategic alliance with Aichi Steel Corporation targets further export growth and product diversification, with a greenfield plant planned by FY 2029-30.

• The company continues to monitor regulatory changes, including new labour codes, and will adjust financial reporting as needed.

• Focus remains on operational efficiency, capacity expansion, and sustainable, profitable growth with minimal carbon footprint.