Conference Call with Vardhman Special Steels Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Vardhman Special Steels announced Q2FY26 results The volumes for the quarter stood at 55,536 tonnes as against 59,018 (only rolled products) tonnes in Q2FY25. Revenue from Operations stood at Rs 432.27 crore in Q2FY26, as against Rs 494.82 crore in Q2FY25, decrease of 12.64% YoY mainly due to reduction in volumes and lower realisations. EBITDA (including other income) for the quarter was Rs 56.48 crore as against Rs 48.45 crore in Q2FY25, increasing by 16.58% mainly on account of lower raw material prices and increase in Other income on account of interest received on fixed deposits of unutilized amount invested by Aichi Steel Corporation. EBITDA per Ton for the quarter was Rs 10,170. Q2 FY26 PAT stood at Rs 34.56 crore as against PAT of Rs 25.82 crore in Q2FY25. This increase is attributable partly due to the reasons mentioned above & partly due to reduction in finance cost. EPS for the quarter stood at Rs 3.61 vs Rs 3.17 in Q2FY25. Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels, said: “Q2 FY26 was a stable quarter with total revenue of Rs 432.27 crore, EBITDA of Rs 56.48 crore, and PAT of Rs 34.56 crore. The Company achieved its EBITDA per ton of Rs 10,170, primarily driven by lower raw material costs and higher other income. Sales volume stood at 55,536 tons, with realizations remaining broadly in line with the previous quarter. In July, the Company fully repaid its long-term and short-term borrowings, resulting in a debt-free balance sheet and lower finance costs. Commercial utilization of the Kocks Block commenced during the quarter, expanding the range of rolled products and improving overall productivity. The Capex for the new reheating furnace is progressing as planned and is expected to be commissioned in the second half of the financial year, further boosting capacity and operational performance. With regards to the Rs 385 crore received by the company from Aichi Steel Corporation, Rs 150 crore were utilized to repay short-term borrowings, while the balance amount has been temporarily parked in investments.” Result PDF
Iron & Steel Products company Vardhman Special Steels announced Q1FY26 results The volumes for the quarter stood at 55,574 tonnes (only rolled products) as against 50,298 tonnes in Q1FY25 on account of good demand. Revenue from Operations stood at Rs 433.70 crore in Q1FY26, as against Rs 414.78 crore in Q1FY25, increase of 4.56% Y-o-Y mainly due to the increase in sales volume despite lower realisations. EBITDA (including other income) for the quarter was Rs 39.33 crore as against Rs 48.04 crore in Q1FY25, decreasing by 18.13%. The decrease was primarily due to lower gross margins. EBITDA per Ton for the quarter was Rs 7,077 Q1FY26 PAT stood at Rs 19.90 crore as against PAT of Rs 26.08 crore in Q1FY25. EPS for the quarter stood at Rs 2.43 vs Rs 3.20 in Q1FY25 Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels said, “In Q1FY26, our revenue increased by 4.93% on a year-on-year basis on account of higher volumes despite pressure on realizations. The volumes increased by 10.49%. Total revenue stood at Rs 441.20 crore, with EBITDA at Rs 39.33 crore and PAT at Rs 19.90 crore. EBITDA per ton for the quarter stood at Rs 7,077. In the first week of July, we fully repaid our long-term as well as short term borrowings, leading to a reduction in finance cost in the subsequent quarters. During the quarter under review, the Kocks Block has been successfully commissioned. The trial runs on Kocks Block are almost over and now we are waiting for approval from some of the OEs before the commercial production to begin through Kocks Block. The Capex for the reheating furnace is proceeding as per plan and we are hopeful to commission it in the second half of the financial year. I am happy to share that Aichi Steel Corporation (ASC) has increased its stake in the Company to 24.9% by investing Rs 384.91 crore. This reflects their strong trust in our partnership and confidence in the Company. It also highlights the shared long-term strategic vision of Vardhman Special Steels and Aichi Steel Corporation, which is reflected in the recently announced Greenfield expansion. Further, we have started discussions with ASC on setting up a forging facility.” Result PDF
Conference Call with Vardhman Special Steels Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Vardhman Special Steels announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: The volumes for the quarter stood at 53,834 tonnes as against 52,118 tonnes in Q4FY24 – YoY increase of 3.29% despite a shutdown of 14 days in Rolling mill in Mar’25. Revenue from Operations stood at Rs 428.04 crore in Q4FY25, as against Rs 439.41 crore in Q4FY24, decrease of 2.59% YoY mainly due to decline in realisations inspite of increased volumes. EBITDA (including other income) for the quarter was Rs 38.62 crore as against Rs 57.54 crore in Q4FY24, decreasing by 32.89%. The decrease was primarily due to lower gross margins. EBITDA per Ton for the quarter was Rs 7,174. Q4FY25 PAT stood at Rs 19.73 crore as against PAT of Rs 32.79 crore in Q4FY24. EPS for the quarter stood at Rs 2.42 vs Rs 4.02 in Q4FY24. FY25 Financial Highlights: The volumes stood at 2,15,843 tonnes (only rolled products) as against 1,95,024 tonnes in FY24 – YoY increase of 10.67%; Additionally, we have sold 4,153 MT of billets during the FY25. Revenue from Operations stood at Rs 1,764.41 crore in FY25, as against Rs 1,661.36 crore in FY24, an increase of 6.20% YoY, mainly on account of increase in sales volume which was offset by reduction in prices. EBITDA (including other income) for FY25 was Rs 177.16 crore as against Rs 172.26 crore in FY24, an increase of 2.84%. EBITDA per Ton for FY25 was Rs 8,208 (on rolled sales quantity). FY25 PAT stood at Rs 93.09 crore as against PAT of Rs 91.63 crore in FY24, increase of 1.59%. EPS for FY25 stood at Rs 11.40 vs Rs 11.26 in FY24. The Board has recommended a dividend of Rs 3 per share on fully paid-up equity shares, subject to approval in the Annual General Meeting as against Rs 2 per share in the previous year. Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels, said: “In Q4FY25, our revenue remained flat on a year-on-year basis, on account of higher than expected price reduction. Total revenue stood at Rs 428.04 crore, with EBITDA at Rs 38.62 crore and PAT at Rs 19.73 crore. EBITDA per ton was Rs 7,174 – mainly impacted by reduced realizations while raw material prices remained relatively stable. Despite a 14-day plant shutdown, volumes increased by 3.29% YoY. Looking ahead, Market demand remains muted, As a result, opportunities for price increases are limited. Raw material prices are relatively stable. Working capital borrowings increased due to inventory build-up in preparation for the planned shutdown. However, the process of the inventory going back to normal level has already started. During the year we have reduced our long term borrowings to Rs 3.29 crore and will continue to bring it down further going forward. As planned, the Kocks Block has been successfully commissioned and is currently in the stabilization phase. Once fully operational, it is expected to enhance productivity and reduce inventory requirements. We remain focused on improving operational efficiency and positioning the company for sustainable long term growth. The company has announced a dividend of Rs 3 per share for FY25 as against Rs 2 in FY24. I am happy to announce our long awaited capex plan of setting up a new green field steel plant in the State of Punjab for manufacturing of special and alloy steel. The proposed capacity addition is 5,00,000 MT of billet production with commensurate Rolling Mill & testing facilities. The total Capex required for this would be around Rs 2000 Crores, which will be funded through a mix of internal accruals, equity and debt. With this green field plant we will be able to address the expected capacity shortage post-2028. This will support future demand, meet evolving quality standards, align with trends like Green Steel, and help reduce manufacturing costs.” Result PDF
Conference Call with Vardhman Special Steels Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Vardhman Special Steels announced Q3FY25 results The volumes for the quarter stood at 52,692 tonnes (only rolled products) as against 46,437 tonnes in Q3FY24 – YoY increase of 13.47%. Additionally, we have sold 1,559 MT of Billets in this quarter. Revenue from Operations stood at Rs 426.77 crore in Q3FY25, as against Rs 397.40 crore in Q3FY24, increase of 7.39% YoY mainly due to increase in sales volume. EBITDA (including other income) for the quarter was Rs 42.05 crore as against Rs 41.50 crore in Q3FY24, increase of 1.33%. EBITDA per Ton for the quarter was Rs 7,981 (on rolled sales quantity). Q3FY25 PAT stood at Rs 21.46 crore as against PAT of Rs 21.81 crore in Q3FY24. EPS for the quarter stood at Rs 2.63 vs Rs 2.68 in Q3FY24 Sachit Jain, Vice Chairman & Managing Director, Vardhman Special Steels said, “Our volumes for the quarter increased by 14% for rolled products despite muted demand. The revenue growth was in line with the growth in volumes mainly due to pricing pressures from the OEMs which led to lower realizations and less margin per ton. The EBITDA per ton for rolled products remained within our targeted range at Rs 7,981 per ton. Speaking of our overall capacity, we have successfully tested 3,00,000 tonnes of annual billet production capacity as per our plans. In preparation for the upcoming quarter, we are building inventory in anticipation of a planned plant shutdown in March for approximately 25 days. Looking ahead, we are well aligned with our long-term vision for profitable growth. We remain focused on maintaining our momentum and delivering sustainable value to all our stakeholders” Result PDF
Conference Call with Vardhman Special Steels Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
