Vardhman Special Steels Ltd

- 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.

- 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.

- 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.

- 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.

- 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.