Competitive undercutting intensifying
Management acknowledged ongoing competitive pricing pressure and stated the only counter is continuous quality improvement and internal cost reduction. This pressures margins if unable to pass through costs.
VSSL / Q2-FY26 / risks
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Vardhman Special Steels · Material risks, their source context, and severity in the latest available quarter.
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Yen weakness impacting Japan exports
Japanese yen weakened to 145-150, making Indian steel nearly as expensive as Japanese steel for Toyota Thailand operations. Combined with Thailand market subdued and custom duty on Indian steel, export volumes to IIT have underperformed estimates.
Land acquisition delays for V3 plant
Management admitted land purchase from multiple farmers is slow and tedious with 30-year record verification required. Despite being in final stages, contiguity requirements (0.5km x 300m) could cause further delays beyond January target.
Bright bar export weakness from US tariffs
US tariff impacts reduced bright bar exports as customers shifted away. Management admitted that without this headwind, Q2 volumes would have been higher. No specific timeline for resolution provided.