Vardhman Special Steels (VSSL) Q4 25/26 earnings summary

Executive summary

• Achieved record annual profit of INR 122.02 crores and highest-ever volume at 225,620 tons for FY26, with the auditor issuing an unmodified opinion on the statements.

• Became debt-free in FY26, enhancing financial flexibility and operational strength.

• Commissioned new reheating furnace and solar plant, increasing capacity to 270,000 tons and improving sustainability.

• Reinforced partnership with Aichi Steel Corporation, which increased its stake to 24.9% and expanded technical collaboration.

• Board recommended a dividend of INR 3.5 per share, subject to AGM approval.

Financial highlights

• FY26 revenue from operations was INR 1,75,443.31 lakhs, with net profit after tax at INR 12,202.39 lakhs and basic EPS at INR 13.15.

• FY26 EBITDA rose 17.87% to INR 208.82 crores; PAT up 31.08% to INR 122.02 crores.

• Q4 FY26 EBITDA increased 46.40% year-over-year to INR 56.54 crores; PAT up 72.20% to INR 33.98 crores.

• EBITDA per ton guidance raised to INR 8,000–11,000 for FY27, with a target of INR 9,000–12,000 in two years.

• Government incentives contributed INR 24 crores in FY26, expected to be INR 13 crores next year.

Outlook and guidance

• FY27 sales volume targeted at 250,000–255,000 tons, with rolling capacity at 270,000 tons.

• New greenfield steel plant (500,000–600,000 tons) to commission by July 2029; forging plant to start in Q4 FY28.

• Strategic focus on expanding into non-automotive and advanced alloy segments over the next decade, with product mix to remain automotive-focused for the next 5 years.

• Strategic alliance with Aichi Steel targets export growth to 20–25% by FY27 and new product segments.

• Full ramp-up of new plant expected within 3–6 years post-commissioning.