Any current/future new fundraising through debt or equity?

No immediate plans to raise debt as the company currently has enough equity aligned. Debt raising is likely to occur mostly in 2027, possibly partly in 2026, aligned with future cash flow requirements. The company aims to maintain a conservative balance sheet with a target debt-to-equity ratio around 0.5x, and an upper limit of 0.75x briefly if needed. Future CAPEX plans focus on the new plant and forging business; details and announcement to come by January conference. Existing CAPEX on the current plant is ongoing with no major new allocations beyond the announced projects. Increased stake a

Any current/future capex/capital investment/strategic investment?

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

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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. 8,000–11,000 currently to possibly Rs. 8,000–12,000 or Rs. 9,000–12,000 by FY '28. At 270,000 tons capacity, EBITDA is projected between Rs. 216 crores (lower end) to about Rs. 300 crores. Revenue growth is anticipated due to increased production enabled by the new reheating furnace and improved margins as costs decline. The forging business commission

Current/ Expected Orderbook/ Pending Orders?

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 opportuniti

Vardhman Special Steels LtdQ3 FY26

Vardhman Special Steels Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹353P/E: 22.2Market Cap: ₹3.2K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→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.
→Gradual normalization expected after current pricing pressure and competition.
→Export contributions remain 6-8% of revenue, with growth dependent on market conditions.

Margin guidance

Category 1

→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. 8,000–11,000 currently to possibly Rs. 8,000–12,000 or Rs. 9,000–12,000 by FY '28.
→At 270,000 tons capacity, EBITDA is projected between Rs. 216 crores (lower end) to about Rs. 300 crores.
→Revenue growth is anticipated due to increased production enabled by the new reheating furnace and improved margins as costs decline.
→The forging business commissioning is targeted before July 2029, indicating additional revenue streams.
→Conservative financial management aims to keep debt-to-equity below 1:1, ensuring sustainable growth.
→Growth drivers include import substitution, direct supply to auto OEs, green steel demand, and circular economy initiatives.

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Fundraise plans

Yes

→No immediate plans to raise debt as the company currently has enough equity aligned.
→Debt raising is likely to occur mostly in 2027, possibly partly in 2026, aligned with future cash flow requirements.
→The company aims to maintain a conservative balance sheet with a target debt-to-equity ratio around 0.5x, and an upper limit of 0.75x briefly if needed.
→Future CAPEX plans focus on the new plant and forging business; details and announcement to come by January conference.
→Existing CAPEX on the current plant is ongoing with no major new allocations beyond the announced projects.
→Increased stake and capital infusion from Aichi Steel signify stronger commitment but do not necessarily indicate new fundraising immediately.

Order book

→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.
→The forging business announcement is expected by January, targeting commissioning by July 2029, which will potentially add to future order intake.
→Overall, business seems poised for growth but no specific order backlog figures are disclosed.

Capex plans

Yes

→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.
→ - Debt raising primarily expected during 2026-2027 to support new projects.
→ - Post current expansion, future capex will shift mainly to the new plant and forging business rather than existing facilities.

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