VSSL
Vardhman Special Steels share price & financials
- Price
- ₹298.35
- Market cap
- ₹2.9k Cr
- Sector
- Capital Goods
- Calls analysed
- 6
Vardhman Special Steels Limited Q1 FY27
What went well
- Revenue at ₹486 crores, up 12% YoY, driven by higher volumes (59,000 tons, up 6.5% YoY) and price revisions.
- PAT for Q1 FY27 stood at ₹41 crores, significantly higher than ₹34 crores in the preceding quarter and ₹20 crores in the corresponding quarter last year.
- EBITDA per ton for the quarter was ₹10,700, with management expecting to increase the range to ₹8,000-₹12,000 next year and ₹9,000-₹12,000 the year after.
What to watch
- The company is currently capacity-constrained, finding it difficult to meet customer requirements and refusing orders, with current license capacity at 300,000 tons.
- The new plant project cost is expected to increase due to reconfiguring for better carbon footprint, energy efficiency, and adding more testing lines, despite initial estimates being lower.
What Vardhman Special Steels Limited does
Vardhman Special Steels Limited manufactures special and alloy steel billets, hot-rolled bars/rods and bright bars at an integrated plant in Ludhiana, Punjab, serving the automotive, tractor, bearing and general engineering industries. It earns by melting scrap/DRI into billets in its own electric-arc steel melting shop and rolling/finishing them into bars used by OEMs to forge components such as axle gears, crankshafts, connecting rods and steering parts. The company has a long-standing technical collaboration with Aichi Steel Corporation (a Toyota Group company), which is also a strategic equity investor, aimed at bringing Japanese-quality steel-making know-how to its process. It is now forward-integrating into steel forging and machining of automotive components under this partnership.
Segments
- Special & Alloy Steel
- Installed steel melting (billet) capacity
- 300,000 tonnes/year
- Rolling mill capacity
- 270,000 tonnes/year (post FY26 reheating-furnace upgrade)
- Bright bars capacity
- 48,000 tonnes/year
- Manufacturing footprint
- Single integrated steel plant in Ludhiana, Punjab, adjacent to corporate HQ
- Customer base
- 200+ long-term customers including Toyota, Maruti Suzuki, Hero MotoCorp, Bajaj, Hyundai and Caterpillar
- Technology/equity partner
- Aichi Steel Corporation (Toyota Group) — technical collaboration plus an equity stake of ~24.90%
Guidance record · Q1 FY27
what the last two calls moved 23 tracked 6 delivered 0 missed 17 open- Net Debt delivered said Q4 FY25 Promised: Become net debt-free in the next 3 years (excluding new project capex). Q1 FY27: Not mentioned. Management confirmed funding for new projects is not a problem, with commitments for equity and access to debt.
- Forging Plant Commissioning on track said Q3 FY26 Promised: Commence forging production by July 2028 (Q2 FY29). Q1 FY27: Forging project is likely to get commissioned by last quarter of '27-'28.
- EBITDA per ton on track said Q4 FY25 Promised: Raise EBITDA per ton target to INR 8,000-11,000 for FY26-27. Q1 FY27: EBITDA per ton for the quarter was ₹10,700, which is within the guided range for FY27.
All 23 tracked — every revision, and every one management stopped mentioning.
Open the guidance ledgerQuarterly results
Q1 FY27: revenue up 12.0%, net profit up 105.0% against the same quarter last year.
| Line item | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 495 | 427 | 428 | 434 | 432 −13% | 431 +1% | 458 +7% | 486 +12% |
| EBITDA | 39 | 35 | 31 | 32 | 45 +15% | 43 +23% | 46 +48% | 58 +81% |
| Net profit | 26 | 21 | 20 | 20 | 35 +35% | 34 +62% | 34 +70% | 41 +105% |
How to read this
₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.
Performance +48.6% 1Y
1Y: ₹267.5 on 10 Sept 2025 → ₹397.45. High ₹397.45 (11 Sept 2026), low ₹208.4 (30 Mar 2026).
How the price took the results
close before → close after
- Q1 FY27
- −1.8%
- 23 Jul
- Q4 FY26
- −3.8%
- 29 Apr
- Q3 FY26
- −2.1%
- 21 Jan
The move from the last close before each results date to the first close after it — the market's first read on the quarter, not the quarter itself.
Financials, as filed
Revenue grew 0.4% a year over 3 years, FY23 to FY26. Operating margin widened to 9.5%.
| Year ending | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue | ₹1.7k Cr | ₹1.7k Cr | ₹1.8k Cr | ₹1.8k Cr |
| Operating profit | ₹141 Cr | ₹142 Cr | ₹147 Cr | ₹166 Cr |
| Operating margin | 8.1% | 8.6% | 8.3% | 9.5% |
| Interest | ₹18 Cr | ₹19 Cr | ₹18 Cr | ₹13 Cr |
| Depreciation | ₹28 Cr | ₹30 Cr | ₹32 Cr | ₹33 Cr |
| Net profit | ₹100 Cr | ₹92 Cr | ₹93 Cr | ₹123 Cr |
| Net margin | 5.8% | 5.5% | 5.3% | 7.0% |
| ROCE | 20.0% | 18.0% | 17.0% | 15.0% |
How to read this
From the company's own filings. Margins are computed from the filed sums; a year with an incomplete quarter is left blank rather than estimated.
Balance sheet
| Year ending | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Equity capital | ₹41 Cr | ₹41 Cr | ₹41 Cr | ₹81 Cr | ₹96 Cr | ₹97 Cr |
| Reserves | ₹419 Cr | ₹514 Cr | ₹602 Cr | ₹638 Cr | ₹1.1k Cr | ₹1.2k Cr |
| Borrowings | ₹191 Cr | ₹162 Cr | ₹144 Cr | ₹84 Cr | ₹77 Cr | ₹93 Cr |
| Other liabilities | ₹153 Cr | ₹204 Cr | ₹244 Cr | ₹237 Cr | ₹274 Cr | ₹263 Cr |
| Total liabilities | ₹803 Cr | ₹921 Cr | ₹1.0k Cr | ₹1.0k Cr | ₹1.6k Cr | ₹1.6k Cr |
| Fixed assets | ₹283 Cr | ₹289 Cr | ₹294 Cr | ₹325 Cr | ₹472 Cr | ₹585 Cr |
| Capital work in progress | ₹13 Cr | ₹13 Cr | ₹12 Cr | ₹1 Cr | ₹57 Cr | ₹26 Cr |
| Investments | ₹0 Cr | ₹15 Cr | ₹20 Cr | ₹0 Cr | ₹26 Cr | ₹158 Cr |
| Other assets | ₹507 Cr | ₹603 Cr | ₹705 Cr | ₹714 Cr | ₹1.0k Cr | ₹863 Cr |
| Total assets | ₹803 Cr | ₹921 Cr | ₹1.0k Cr | ₹1.0k Cr | ₹1.6k Cr | ₹1.6k Cr |
How to read this
As filed each year. A line the company does not report — deposits for a non-lender, for instance — is left out rather than shown as a row of dashes.
What the price assumes
ExpensiveTo justify its price of ₹397, this stock must grow earnings at 21% every year for 7 years. Our analysis caps realistic growth at ~7%. At that growth it is worth ₹194 — downside of 51%.
- Growth the price implies
- 20.8% a year
- for 7 years, fading to 4%
- It has actually compounded at
- 7.1% a year
- net profit, FY23–FY26
- The gap
- 0.1 pp
- -51% downside if it only repeats history
All earnings calls (5)
Read the Q1 FY27 call →Learn to analyse Vardhman Special Steels Limited
Guides on how to read this kind of business and the numbers that matter.