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

Executive summary

• Q3 FY26 saw strong sales volumes of 55,141 tons, up from 52,692 tons YoY, with stable revenues and 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 for July 2028.

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

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

• Q3 FY26 EBITDA per ton was ₹10,241; excluding non-operational income, it was ₹9,263.

• 9M FY26 PAT was ₹88.04 crore, highest ever, up 20.02% YoY.

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

Outlook and guidance

• Sustainable EBITDA guidance raised to ₹8,000–11,000 per ton for next year, up from 7,000–10,000.

• Targeting 225,000 tons sales for FY26, with plans to reach 270,000–275,000 tons in three years before new plant comes online.

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

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