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

Executive summary

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

• Board approved a ₹475 crore investment for a new steel forging and machining facility in Ludhiana, with technical collaboration from Aichi and commissioning targeted by July 2028.

• Progress on greenfield steel plant (500,000 tons capacity) and reheating furnace CapEx, with commissioning expected by March and full benefits from May onwards.

• Launched a closed-loop steel recycling initiative with Maruti Suzuki and advanced solar power projects to reduce carbon footprint and power costs.

• Unaudited financial results for the quarter and nine months ended 31 December 2025 were approved by the Board, with statutory auditors finding no material misstatements.

Financial highlights

• Q3 FY26 revenue from operations was ₹430.54 crore, up 0.88% YoY; total income reached ₹443.72 crore, up 2.3% YoY.

• Q3 FY26 sales volumes were 55,141 tonnes, up from 52,692 tonnes in Q3 FY25.

• Q3 FY26 EBITDA was ₹56.47 crore (including other income), up 34.28% YoY; PAT was ₹33.59 crore, up 56.53% YoY.

• 9M FY26 PAT reached an all-time high of ₹88.04 crore, up 20.02% YoY.

• Basic and diluted EPS for the quarter were ₹3.48 and ₹3.47, respectively, up from ₹2.63 and ₹2.62 year-over-year.

Outlook and guidance

• Sustainable EBITDA guidance raised to ₹8,000–11,000 per ton for next year, with an aspirational target of ₹12,000 per ton in the future.

• Steel production capacity expected to triple to 720,000 tons after all new projects are commissioned, up from 225,000 tons this year.

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

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