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

Executive summary

• Q3 FY26 saw strong sales volumes of 55,141 tons, stable revenues, and significant YoY growth in EBITDA (34.28%) and PAT (56.53%), driven by operational efficiencies and higher other income.

• Board approved major CapEx projects: a new forging plant in Ludhiana (₹475 crores, commissioning July 2028) and a greenfield steel plant (500,000 tons capacity, commissioning July 2029), advancing forward integration and value addition.

• Renewed technical assistance agreement with Aichi for three years; Aichi Steel increased its stake to 24.9%.

• Launched a closed-loop steel recycling initiative with Maruti Suzuki and invested in Sone Solar Private Limited to support green steel roadmap and lower power costs.

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

Financial highlights

• Q3 FY26 revenue was ₹430.54 crore, up 0.88% YoY; total income reached ₹443.72 crore, and Q3 volumes were 55,141 tonnes.

• Q3 EBITDA was ₹56.47 crore (₹10,241/ton; ₹9,263/ton excluding non-operational income), up 34.28% YoY; PAT was ₹33.59 crore, up 56.53% YoY.

• 9M FY26 revenue from operations was ₹1,296.52 crore, down 2.98% YoY; EBITDA for 9M FY26 was ₹152.28 crore, up from ₹138.54 crore YoY.

• 9M FY26 PAT reached an all-time high of ₹88.04 crore, up 20.02% YoY; basic EPS for 9M FY26 was ₹9.63, up from ₹9.00 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/ton for next year, with an aspirational target of ₹12,000/ton.

• Steel production expected to triple over the next few years, targeting 720,000 tons of finished steel after all expansions.

• New reheating furnace commissioning by March 2026 will increase rolling capacity to 270,000 tons.

• 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.