Vardhman Special Steels Ltd

- Vardhman Special Steels plans a total capex of about INR 2,600 crores (INR 2,000 crores for the new steel plant and INR 475 crores for the forging project). - Funding will involve roughly INR 1,200 crores equity infusion and INR 1,200 crores raised via debt. - About INR 385 crores of equity has already been infused; another equity infusion is expected later next year. - The company aims to maintain a total debt-to-equity ratio below 0.75, with comfort around 0.5. - Partners like Aichi will invest more equity, and the Vardhman Group has committed INR 300-400 crores. - At some stage, a Qualified Institutional Placement (QIP) or other external investment might be considered. - Current debt-equity targets aim to support the upcoming expansions responsibly with controlled leverage.

- Total planned capex for the new steel plant: ~INR 2,000 crores. - Forging project budgeted at INR 475 crores, likely to be lower. - Additional internal capex, replacement capex, and quality upgrades planned. - Investments anticipated in specialized processes: electroslag refining, vacuum arc refining, vacuum induction melting (plans to be finalized within a year). - Forging plant capex around INR 475-500 crores; about INR 50-80 crores spent so far; commissioning expected in FY 28 Q3/Q4. - Expansion of existing melting shop from 300,000 to 360,000 tons pending environmental clearance. - Significant capex (~INR 700-800 crores) expected in FY 27-28 for steel and forging plants; ~INR 100 crores on existing plant capex and replacement. - Additional equity infusion of ~INR 1,200 crores and debt of ~INR 1,200 crores planned, keeping debt-equity below 0.75. - New greenfield steel plant to commission by July 2029 with 500,000 tons capacity. - Forging plant to initially start with one line, plans to add more lines later.

- Current year sales target: Around 250,000 to 255,000 tons of rolled products (FY '26-'27). - Next year sales volume expected to increase to approximately 270,000 to 275,000 tons. - Longer-term capacity target of 270,000 to 280,000 tons for the existing plant over the next 3 years. - New greenfield steel plant commissioning targeted by July 2029 with capacity of 500,000 to 600,000 tons. - Combined capacity post new plant: ~900,000 tons of steel. - Ramp-up period for the greenfield plant expected around 3 years post commissioning. - Forging line production start expected Jan-Mar 2028 with ramp-up in FY '28-'29. - Growth expected through volume increase, cost efficiencies, product mix improvements, strategic diversification into non-automotive steels (targeting 30% non-automotive mix in 10 years). - Export focus to increase via components supply to global OEs, leveraging cost advantages and free trade agreements.

- EBITDA per ton guidance increased to INR 8,000–11,000 for FY '26, targeting INR 9,000–12,000 within 2 years. - Record profits of INR 122 crore in FY '26; confident of better times ahead. - Growth driven by cost efficiency, volume increase, and process improvements rather than product mix changes in near term. - New greenfield steel plant (500,000–600,000 tons capacity) commissioning targeted by July 2029, adding substantial capacity and revenue potential. - Forging plant commissioning planned by Q3 FY '28 to enter new business with potential for further expansion. - Target ROCE after new plants reach full capacity utilization expected above 20%; investments below this threshold not pursued. - Expansion and diversification into non-automotive and advanced alloy steels expected to contribute to medium to long-term growth. - Export focus to increase via component exports, leveraging cost advantages and FTAs especially with Europe.

The transcript does not explicitly mention the current or expected order book or pending orders details for Vardhman Special Steels Limited. However, some relevant points inferred related to demand and order flow include: - Customers, including luxury automotive brands like BMW and Mercedes-Benz, provide relatively better pricing, indicating demand from premium segments. - Forging plant capacity will start commissioning in early 2028 with customer approval processes underway, aiming for ramp-up in FY '28-'29. - New greenfield plant commissioning is expected by July 2029, targeting to reach full capacity within approximately 3 years thereafter. - The company targets 250,000 to 270,000 tons volume in current and near future years, with growth beyond that tied to environmental approvals and capacity expansions. - Discussions are ongoing with customers for forging product validations, some validations expected before plant production begins. No specific figures or detailed order book status are disclosed in the available transcript.