Any current/future new fundraising through debt or equity?

Vardhman Special Steels Limited has full support from its major shareholders for capital infusion. Aichi Steel has increased its stake to 24.9% and is willing to invest more funds as and when required. The Vardhman Group has also expressed willingness to add capital whenever needed for new projects. No new capex plan announced; current focus is on implementing earlier announced capex plans. The company is prepared to raise capital through existing shareholders rather than seeking external debt or equity fundraising at this time.

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

**Ongoing Capex:** - Reheating furnace capex likely to be commissioned by March 2026, with full benefits from May 2026. - Non-destructive testing line capacity to be ready by June/July 2026. **Future Capex:** - New forging plant with an investment of INR 475 crores, commissioning target July 2028. - New steel plant with 500,000 tons capacity planned for commissioning by July 2029. - Potential expansion of melting shop capacity from 300,000 tons to 500,000 tons subject to government license. **Strategic Investments:** - Support and funding willingness from major shareholders, Ai

Future growth expectations in sales/revenue/volumes?

Current steel production and sales are about 2,25,000 tons, expected to more than triple to over 6,75,000 tons in the next 3-4 years including forging business. Target to raise steel production to 2,70,000-2,75,000 tons within 3 years before new steel plant commissioning in July 2029. New steel plant with a capacity of 5,00,000 tons to be operational by July 2029, further boosting volumes. Overall steel production capacity expected to reach around 8 lakh tons after all capex. Focus on expanding into forging and non-automotive steel segments for diversified growth. Revenue and sales growth will

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

Vardhman Special Steels plans to triple sales volume from ~2.25 lakh tons currently to over 6.75 lakh tons in the coming years with new capacity additions. Sustainable EBITDA per ton target is INR 8,000 to INR 11,000; aspirational target around INR 12,000 per ton post full capacity commissioning. Full capacity utilization expected to be achieved before the new steel plant commissioning in July 2029. The new billet capacity of 5 lakh tons will come up by July 2029, augmenting existing 3 lakh tons. Launch of forging business expected to contribute to revenues with decent returns once fully opera

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention the current or expected order book or pending orders of Vardhman Special Steels Limited. However, it highlights ongoing discussions with major customers, including Maruti Suzuki and other car OEMs, showing strong interest in the company’s products. The management expects growing demand aligned with upcoming capacity expansions such as the new melting shop and reheating furnace commissioning. The forging project and new steel plant (commissioning targeted by July 2029) are expected to boost sales significantly, helping to triple current volumes. Increa

Vardhman Special Steels LtdQ4 FY26

Vardhman Special Steels Ltd Q4 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 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Current steel production and sales are about 2,25,000 tons, expected to more than triple to over 6,75,000 tons in the next 3-4 years including forging business.
→Target to raise steel production to 2,70,000-2,75,000 tons within 3 years before new steel plant commissioning in July 2029.
→New steel plant with a capacity of 5,00,000 tons to be operational by July 2029, further boosting volumes.
→Overall steel production capacity expected to reach around 8 lakh tons after all capex.
→Focus on expanding into forging and non-automotive steel segments for diversified growth.
→Revenue and sales growth will align with volume increases as pricing depends on raw material fluctuations.
→EBITDA per ton guidance is INR 8,000-11,000 sustainably, aimed to improve with operational efficiencies.
→Full capacity utilization anticipated to take a few years post commissioning of new plant and capex projects.

Margin guidance

Category 3

→Vardhman Special Steels plans to triple sales volume from ~2.25 lakh tons currently to over 6.75 lakh tons in the coming years with new capacity additions.
→Sustainable EBITDA per ton target is INR 8,000 to INR 11,000; aspirational target around INR 12,000 per ton post full capacity commissioning.
→Full capacity utilization expected to be achieved before the new steel plant commissioning in July 2029.
→The new billet capacity of 5 lakh tons will come up by July 2029, augmenting existing 3 lakh tons.
→Launch of forging business expected to contribute to revenues with decent returns once fully operational in next 2 years.
→New projects like non-destructive testing line (coming online by mid-2026) and reheating furnace (Q4 FY '26) will enhance product quality and operational efficiency.
→Strong support from major shareholders Aichi Steel and Vardhman Group for capital raises to fund growth.
→Company expects margin improvement and working capital efficiency gains as new projects stabilize.

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Fundraise plans

Yes

→Vardhman Special Steels Limited has full support from its major shareholders for capital infusion.
→Aichi Steel has increased its stake to 24.9% and is willing to invest more funds as and when required.
→The Vardhman Group has also expressed willingness to add capital whenever needed for new projects.
→No new capex plan announced; current focus is on implementing earlier announced capex plans.
→The company is prepared to raise capital through existing shareholders rather than seeking external debt or equity fundraising at this time.

Order book

→The transcript does not explicitly mention the current or expected order book or pending orders of Vardhman Special Steels Limited.
→However, it highlights ongoing discussions with major customers, including Maruti Suzuki and other car OEMs, showing strong interest in the company’s products.
→The management expects growing demand aligned with upcoming capacity expansions such as the new melting shop and reheating furnace commissioning.
→The forging project and new steel plant (commissioning targeted by July 2029) are expected to boost sales significantly, helping to triple current volumes.
→Increasing demand is supported by emerging green steel initiatives and non-destructive testing capabilities planned by mid-2026.
→Overall, the order intake outlook appears robust given capacity expansions and strong customer engagement, although no exact order book figures are disclosed.

Capex plans

Yes

→**Ongoing Capex:**
→ - Reheating furnace capex likely to be commissioned by March 2026, with full benefits from May 2026.
→ - Non-destructive testing line capacity to be ready by June/July 2026.
→**Future Capex:**
→ - New forging plant with an investment of INR 475 crores, commissioning target July 2028.
→ - New steel plant with 500,000 tons capacity planned for commissioning by July 2029.
→ - Potential expansion of melting shop capacity from 300,000 tons to 500,000 tons subject to government license.
→**Strategic Investments:**
→ - Support and funding willingness from major shareholders, Aichi Steel (24.9% stake) and Vardhman Group, for capital raising needed for new projects.
→ - Exploration into non-automotive steel segments planned within 1-1.5 years.
→**Renewable Energy:**
→ - Solar power plant near commissioning, expected to reduce carbon footprint and lower power costs.

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