Sales Volume
225,000 tons
+10% YoY
Highest ever volume, driven by outsourcing and capacity utilization.
VARDHMANSPECIALSTEELS
Manufacturing
30 Apr 2026
Vardhman Special Steels Limited — Q4 FY26
Vardhman Special Steels reported record PAT of ₹122 crore for FY26, driven by highest-ever sales volume of 225,000 tons.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Vardhman Special Steels reported record PAT of ₹122 crore for FY26, driven by highest-ever sales volume of 225,000 tons. The company is expanding rolling capacity to 270,000 tons and targeting 250,000-255,000 tons in FY27. EBITDA per ton guidance has been raised to ₹8,000-11,000 (from ₹7,000-10,000), with a medium-term target of ₹9,000-12,000. Key growth drivers include a new reheating furnace, solar plant (9 crore units/year), and process improvements like larger heat sizes. The forging plant (ring gears) is on track for Q3 FY28 commissioning, and a greenfield steel plant (500,000 tons) is targeted for July 2029. Risks include potential global recession impacting demand and delays in environmental clearance for brownfield expansion.
Key Numbers
Rolling Capacity
270,000 tons
+50% YoY
New reheating furnace commissioned in March 2026.
EBITDA per Ton Guidance
₹8,000-11,000
+₹1,000/ton YoY
Raised from previous ₹7,000-10,000 range for FY27.
Forging Plant Capex
₹475 crore
Flat
Budgeted expenditure; expected to be lower than budget.
Management Guidance
FY27 sales volume target of 250,000-255,000 tons
Management guided for sales volume of 250,000-255,000 tons in FY27, up from 225,000 tons in FY26.
Management guidance revenueEBITDA per ton range raised to ₹8,000-11,000 for FY27
The company raised its EBITDA per ton guidance from ₹7,000-10,000 to ₹8,000-11,000 for the current fiscal year.
Management guidance marginsMedium-term EBITDA per ton target of ₹9,000-12,000
Management expects to increase the EBITDA per ton range to ₹9,000-12,000 within two years.
Management guidance marginsForging plant commissioning in Q3 FY28
The forging plant is expected to start operations in the third quarter of FY28, with ramp-up in FY29.
Management guidance expansionKey Risks
Global recession impact on demand
Management acknowledged a possible global recession that could affect demand and pricing.
medium · management_commentaryEnvironmental clearance delay for brownfield expansion
The company needs environmental approval to increase melting capacity from 300,000 to 360,000 tons; Ludhiana's critically polluted zone status poses a risk.
high · management_commentaryCustomer approval timeline for forging products
Analyst raised concern about product validation time; management noted it varies by customer and some may require factory inspection before approval.
medium · analyst_questionEquity dilution risk from future fundraise
Management indicated potential QIP or equity infusion of ~₹800 crore, which could dilute existing shareholders.
medium · management_commentaryNotable Quotes
We have reached a stage where we can think of all these newer areas. We are very clear we will remain only in the areas of special steels and automotive forgings, but more and more we want to see our vision now is to see ourselves a supermarket of special steels.
Our range was earlier 7 to 10. We have now from this year we are increasing the range to 8 to 11 and we said 2 years later we would like to increase the range to 9 to 12.
We are a risk averse group. When we enter into a newer area we'll start with a smaller investment and then gradually build up.
Frequently Asked Questions
What was Vardhman Special Steels's revenue in Q4 FY26?
Vardhman Special Steels reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Vardhman Special Steels management give for FY27?
FY27 sales volume target of 250,000-255,000 tons: Management guided for sales volume of 250,000-255,000 tons in FY27, up from 225,000 tons in FY26. EBITDA per ton range raised to ₹8,000-11,000 for FY27: The company raised its EBITDA per ton guidance from ₹7,000-10,000 to ₹8,000-11,000 for the current fiscal year. Medium-term EBITDA per ton target of ₹9,000-12,000: Management expects to increase the EBITDA per ton range to ₹9,000-12,000 within two years. Forging plant commissioning in Q3 FY28: The forging plant is expected to start operations in the third quarter of FY28, with ramp-up in FY29.
What are the key risks for Vardhman Special Steels in FY27?
Key risks include Global recession impact on demand — Management acknowledged a possible global recession that could affect demand and pricing.; Environmental clearance delay for brownfield expansion — The company needs environmental approval to increase melting capacity from 300,000 to 360,000 tons; Ludhiana's critically polluted zone status poses a risk.; Customer approval timeline for forging products — Analyst raised concern about product validation time; management noted it varies by customer and some may require factory inspection before approval.; Equity dilution risk from future fundraise — Management indicated potential QIP or equity infusion of ~₹800 crore, which could dilute existing shareholders..
Did Vardhman Special Steels meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Vardhman Special Steels Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.