Vardhman Special Steels Ltd
Vardhman Special Steels Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Expect to reach 2,70,000 tons capacity by next year, filling it within 2-3 years. - FY '27 volume guidance around 2,45,000 tons. - Revenue and margins expected to improve with rolling mill expansion; EBITDA per ton projected between Rs. Vardhman Special Steels aims to increase production capacity from 50,000 tons to 270,000 tons by next year, filling this capacity in 2-3 years, potentially ending the current CAPEX cycle thereafter. - EBITDA per ton is expected to improve from Rs.
From Vardhman Special Steels Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Revenue & Sales Performance
- Expect to reach 2,70,000 tons capacity by next year, filling it within 2-3 years.
- FY '27 volume guidance around 2,45,000 tons.
- Revenue and margins expected to improve with rolling mill expansion; EBITDA per ton projected between Rs. 8,000 to Rs. 11,000 by FY '28.
- Potential EBITDA range of Rs. 216 crores (lower end) to Rs. 300 crores at full capacity.
- Growth drivers include domestic auto sector expansion, export opportunities resuming post-tariff issues, and green steel demand.
- New forging plant commissioning targeted before July 2029 to support further volume and product expansion, focusing on auto, including EV parts.
- Capacity expansion via new reheating furnace to improve production and reduce costs.
2 more points management made on revenue & sales performance
Profitability & Margins
See what Vardhman Special Steels Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Current CAPEX related to existing plant includes:
- Commissioning of a new reheating furnace by March of the financial year to increase capacity from 200,000 to 270,000 tons.
- NDT (Non-Destructive Testing) line to be commissioned by June for improving quality capacity.
- Investments in R&D lab, Effluent Treatment Plant (ETP), and fume extraction system upgrades.
- Most major CAPEX for the existing plant to be completed by mid-next year.
- Future CAPEX plans:
- New forging plant focused on the auto sector, announcement expected by January 2026.
- Target commissioning of forging line before July 2029.
- New Greenfield steel plant planning underway; no finalized investment figures yet.
2 more points management made on capital expenditure plans
Top-ranked in Industrial Products
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
See what Vardhman Special Steels Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- The transcript does not explicitly mention the current or expected order book or pending orders in specific figures.
- It is indicated that approvals from auto OEMs (original equipment manufacturers), including European OEMs, are progressing well with initial positive feedback and expected order starts next financial year.
- The company expects to start supplying directly to auto OEMs and Tier 2 suppliers, which is a new development.
- Expansion of capacity to 270,000 tons by next year is expected to support increased orders.
- Major business drivers include domestic demand revival, export opportunities, and circular economy initiatives starting with Maruti Suzuki.
2 more points management made on order book & pipeline
Vardhman Special Steels Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹458 Cr, net profit ₹34 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Vardhman Special Steels Ltd's management said in earlier quarters
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Frequently Asked Questions
What were Vardhman Special Steels Ltd Q2 FY26 results?
Expect to reach 2,70,000 tons capacity by next year, filling it within 2-3 years. - FY '27 volume guidance around 2,45,000 tons. - Revenue and margins expected to improve with rolling mill expansion; EBITDA per ton projected between Rs. Vardhman Special Steels aims to increase production capacity from 50,000 tons to 270,000 tons by next year, filling this capacity in 2-3 years, potentially ending the current CAPEX cycle thereafter. - EBITDA per ton is expected to improve from Rs.
What is Vardhman Special Steels Ltd share price analysis?
Vardhman Special Steels Ltd currently shows a neutral. 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?
Current CAPEX related to existing plant includes: - Commissioning of a new reheating furnace by March of the financial year to increase capacity from 200,000 to 270,000 tons.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.