Vardhman Special Steels Ltd Q1 FY27 Results & Concall Highlights: Revenue, Margins & Order Book
Published 25 Aug 2026 | Industrial Products | Market Cap: ₹3.2K Cr
Current capacity is 3 lakh tons, running at full utilization; licensing limits growth to ~7-8%. EBITDA per ton guidance is expected to improve from INR 8,000-11,000 this year to INR 8,000-12,000 next year, driven by cost reductions, higher volumes, and better product mix.
From Vardhman Special Steels Ltd's Q1 FY27 earnings-call transcript · updated 25 Aug 2026.
Price
₹349
Market Cap
₹3.2K Cr
P/E Ratio
22.2
Revenue Rank
Margin Rank
How does Vardhman Special Steels Ltd rank in Industrial Products?
Compare Vardhman Special Steels Ltd against every Industrial Products company this quarter on revenue, margins and earnings-call signals.
Vardhman Special Steels Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹458 Cr, net profit ₹34 Cr.
Full financials →📊 Revenue & Sales Performance
Rank 3- →Current capacity is 3 lakh tons, running at full utilization; licensing limits growth to ~7-8%.
- →Environmental approval expected '27-'28 to increase production capacity up to ~3.6 lakh tons, enabling revenue growth to ~290 crores next year from 270 crores.
- →New greenfield plant planned with commissioning targeted for FY '29-'30; expected to enable substantial volume growth to 330,000-340,000 tons by '28-'29.
- →Die steels and non-automotive sectors to contribute to margin enhancement and volume growth from '27-'28 onward.
- →OEM demand remains strong; new volume growth anticipated from import substitution for Maruti starting Q4 FY '26-'27.
- →Export volumes modest (~7-8%) but could see gradual increase, especially indirect exports via Aichi.
- →New forging and machining project with Aichi underway; commercial ramp-up expected gradually over next 2-3 years.
- →Cost efficiencies, operational improvements, and higher value-added products will support sustained revenue and margin growth.
📈 Profitability & Margins
Rank 1- →EBITDA per ton guidance is expected to improve from INR 8,000-11,000 this year to INR 8,000-12,000 next year, driven by cost reductions, higher volumes, and better product mix.
- →Margin improvements will come from volume increase (spreading fixed costs), operational efficiencies, reduced job work costs, and new solar plant cost savings (expected in ~1 year).
- →Capacity constrained at 300,000 tons due to license limits; environmental approval expected soon should enable increase to ~330,000-340,000 tons by FY '28-'29.
- →Gradual ramp-up in new forging and machining business with Aichi Steel, expected to contribute positively over time.
- →New greenfield plant commissioning planned for FY '29-'30, supporting massive growth potential thereafter.
- →Export volumes currently ~7-10%, with potential to grow indirectly via components.
- →Overall, steady and improving financial performance with anticipated steady earnings and margin growth over the next 2-3 years.
🏗️ Capital Expenditure Plans
Yes- →New greenfield steel plant planned with an increased capacity of over 5 lakh tons (previously planned 5 lakh tons) with commissioning targeted in FY '29-'30.
- →Land acquisition and machinery finalization for the greenfield plant expected by August-September.
- →Application made for brownfield expansion from 3 lakh to 3.6 lakh tons capacity; environmental clearance expected in 3-4 months.
- →Forging and machining project with Aichi Steel to be commissioned by Q4 FY '27-'28; commercial ramp-up will be gradual, with revenue from FY '29 onwards.
- →Ingot casting facility for die steels to be ready by Q3 FY '26-'27; regular die steel production expected FY '27-'28.
- →New solar plant expansion planned to increase capacity by ~50%, expected in 1 to 1.5 years, aiding cost reductions and carbon footprint reduction.
- →Capital raising planned next year with backing from major shareholders and institutions; funding and government support assured.
💰 Fundraising & Capital Structure
Yes- →Vardhman Special Steels has adequate existing funding and cash available currently.
- →They plan to raise capital sometime next year, depending on when funds are needed.
- →Both major shareholders, Vardhman Group and Aichi, have committed to providing necessary equity capital.
- →They are also exploring funding from large institutions interested in investing.
- →Debt funding through banks is also being considered and is not a problem.
- →Overall, capital raising through equity or debt is planned but not immediate, aligned with project timelines.
📋 Order Book & Pipeline
No- →Vardhman Special Steels does not maintain a strong or long-term order book system; orders are mostly on a repeat business basis from OEM customers.
- →Currently, the company is fully booked out and is refusing new orders, indicating very strong demand.
- →Customers do not provide long-term volume commitments; orders depend on their production volumes.
- →The next expected volume increase will start from the commercial production for import substitution for Maruti from Q4 of the financial year.
- →There is no system of visibility on orders beyond immediate customer requirements.
- →The company is finding it difficult to meet existing customer demands due to capacity constraints.
- →Expansion plans are underway to increase capacity and meet growing demand, subject to environmental approvals and capex projects.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Vardhman Special Steels Ltd Q1 FY27 results?
Current capacity is 3 lakh tons, running at full utilization; licensing limits growth to ~7-8%. EBITDA per ton guidance is expected to improve from INR 8,000-11,000 this year to INR 8,000-12,000 next year, driven by cost reductions, higher volumes, and better product mix.
What is Vardhman Special Steels Ltd share price analysis?
Vardhman Special Steels Ltd currently shows a below-average growth signal. The stock trades at a P/E of 22.2 with a market cap of ₹3,185 Cr. Investors should review the full earnings analysis for detailed insights.
Is Vardhman Special Steels Ltd planning capital expenditure?
New greenfield steel plant planned with an increased capacity of over 5 lakh tons (previously planned 5 lakh tons) with commissioning targeted in FY '29-'30.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.