| Net Profit Growth | 107.01%Year-on-Year |
|---|---|
| Market Cap | ₹2,871 CrMetals & Mining |
| EBITDA per Ton | ₹10,760Q1 Achieved |
| Day RSI | 58.78Zone label |
Key highlights
- Revenue from operations grew by 12% year-on-year to reach ₹486.01 crore in Q1 FY27
- Net profit for the quarter stood at ₹41.19 crore, a 107% increase from the ₹20 crore reported in the same period last year
- Achieved sales volumes of 59,000 tons, marking a 6.5% year-on-year growth driven by OEM demand
- EBITDA per ton reached ₹10,760, leading management to raise future guidance to a range of ₹9,000-₹12,000
- Successfully signed Technical Assistance Agreement with Aichi Steel, Japan, for a new forging unit
- Solar power now accounts for 43% of total consumption, aiding the goal of maintaining a low carbon footprint
Financial Performance and Operational Efficiency
Vardhman Special Steels reported a robust start to the fiscal year 2026-27, with revenue reaching ₹486.01 crore. The substantial increase in net profit to ₹41.19 crore was attributed to a combination of higher sales volumes and successful price revisions with automotive original equipment manufacturers. The company’s EBITDA per ton of ₹10,760 exceeded historical averages, supported by lower operating costs and the stabilization of the new reheating furnace.
Management noted that higher production levels helped spread fixed costs more efficiently, resulting in positive operating leverage across the business.
Expansion and Strategic Diversification
The company is currently facing capacity constraints, operating at its license limit of 3 lakh tons per annum. To address this, an application has been submitted to the Environment Ministry to increase capacity to 3.6 lakh tons. Beyond its core automotive segment, Vardhman is diversifying into high-margin areas such as die steels, railways, and aerospace.
The company expects its ingot casting facility for die steels to be ready by the third quarter of FY27, targeting an import substitution market estimated at ₹1,000 crore in India.
Future Outlook and Capital Projects
- A new greenfield steel plant with a capacity of 5 lakh tons is on track for commissioning by the end of FY29-30.
- The forging project with Aichi Steel is expected to be commissioned by the final quarter of FY27-28.
- Management plans to enhance solar power capacity by 50% within the next 18 months to further reduce energy costs.
- New NDT and peeling lines are scheduled for commissioning by September-October 2026 to eliminate production bottlenecks.
Management Perspective on Demand
We are completely booked out and we are refusing orders. I mean, we call it a strong order book or visibility, we are currently having trouble meeting the requirements of our customers. So, demand is very strong.
“So, I'm gradually getting the confidence that for next year, we can improve our range. Today, our range is 8,000 to 11,000. But next year, we should be able to increase the range from 8,000 to 12,000.”
“This quarter, we have achieved 59,000 tons of sales, which is higher than the corresponding quarter of last year by 6.5%. And revenue from operations is at INR486 crores, higher by 12%.”
| Share price | ₹296.9 |
|---|---|
| Market capitalisation | ₹2,871.06 Cr |
| Revenue (annual) | ₹1,754.43 Cr |
| Net profit (annual) | ₹122.02 Cr |
| Revenue (latest quarter) | ₹486.01 Cr+6.13% vs previous quarter |
| Net profit (latest quarter) | ₹41.19 Cr+21.21% vs previous quarter |
| P/E (TTM) | 20.03×Sector 18.41× |
| Promoter holding | 51.06%0.00% QoQ |
| FII holding | 0.55%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Vardhman Special Steels Limited regarding the transcript of the earnings conference call held on July 23, 2026. Market figures from a third-party data provider.
