Vardhman Special Steels Limited (VSSL)
₹380.50 +2.20% last close, 16 Oct
Q2 FY27 results
📅 Next results: 27 Oct 2026 (board meeting)Vardhman Special Steels Limited's board meets on 27 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Vardhman Special's revenue was ₹486 Cr (+12.0% year on year, +6.1% on the previous quarter), and net profit ₹41.2 Cr (+105.9% year on year); the operating margin was 12.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹486 | +12.0% | +6.1% |
| Operating profit | ₹58.4 | +82.6% | +27.0% |
| Net profit | ₹41.2 | +105.9% | +21.1% |
| EPS (₹) | 4.26 | +75.3% | +21.4% |
| Operating margin | 12.0% | — | — |
VSSL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 30.08% of the VSSL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 47.11%. The price rose 2.20% on unusually low delivery, so more of the move than usual was intraday trading. Volume was 0.5 times its average, well below normal.
Delivery in the last 5 sessions: 51.4% · 55.5% · 40.7% · 58.9% · 30.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Vardhman Special Steels Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from Registrar and Share Transfer Agent Alankit Assignments Limited confirms that physical share certificates received for dematerialization have been verified, cancelled, and substituted with depositories in records. This is a standard quarterly administrative filing with no operational or financial impact.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Covers the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent Alankit Assignments Limited on October 06, 2026
Vardhman Special Steels Limited (VSSL) disclosed the scrutinizer report for its 16th Annual General Meeting held on September 18, 2026. All seven resolutions were approved with requisite majorities, including the adoption of FY26 financial statements and dividend declaration, both receiving 100.00% assent from voting shares. Shareholders also approved the revision of remuneration for Executive Director Soumya Jain and the continuation of Executive Director Rajendar Kumar Rewari beyond 70 years of age with 99.92% assent. Approximately 76.41 million shares, representing 79.01% of the total paid-up share capital, were voted across the resolutions.
- Total of 76,406,908 shares voted, representing 79.01% of total paid-up share capital
- Adoption of FY26 audited financial statements and dividend declaration passed with 100.00% assent (76,406,898 votes in favour)
- Continuation of Rajendar Kumar Rewari as Executive Director past 70 years approved with 99.92% assent (76,343,165 votes)
- Revision of remuneration for Executive Director Soumya Jain passed with near-unanimous 100.00% assent (76,406,613 votes)
Vardhman Special Steels Limited concluded its 16th Annual General Meeting on September 18, 2026. Shareholders approved all 7 resolutions with overwhelming majorities (>99.9% assent), representing 79.01% of total paid-up share capital. Key approved items include the adoption of FY26 financial statements, dividend declaration, revision of remuneration for Executive Director Mrs. Soumya Jain, and the continuation of Mr. Rajendar Kumar Rewari as Executive Director past age 70.
- Total voting participation reached 79.01% of total paid-up share capital (76,406,908 shares)
- Dividend declaration resolution approved with 100% voting assent (76,406,898 votes)
- Revision of remuneration for Executive Director Mrs. Soumya Jain passed with 100% approval
- Special resolution allowing Executive Director Mr. Rajendar Kumar Rewari to continue past 70 years approved with 99.92% assent
- Remuneration ratification for Cost Auditors for FY 2026-27 approved with 100% assent
Vardhman Special Steels Limited conducted its 16th Annual General Meeting on September 18, 2026, via video conferencing. Among the key ordinary resolutions considered was the declaration of a dividend of ₹3.5 per equity share for the financial year ended March 31, 2026. Special business included the revision of remuneration for Executive Director Mrs. Soumya Jain and approving the continuation of Mr. Rajendar Kumar Rewari as Executive Director past age 70. Final e-voting and venue voting outcomes are expected to be disclosed within two working days.
- 16th Annual General Meeting concluded on September 18, 2026 (10:00 a.m. to 10:33 a.m.)
- Proposed dividend of ₹3.5/- per equity share for FY ended March 31, 2026
- Remote e-voting window was open from September 15, 2026 (09:00 a.m.) to September 17, 2026 (05:00 p.m.)
- Formal voting results to be disseminated within 2 working days
Vardhman Special Steels Limited held an in-person meeting and plant visit on September 9, 2026, at Ludhiana with 6 institutional investors including ICICI Securities PMS, BTH Capital, and Latent Advisors. The company confirmed that discussions were restricted to publicly available information and no unpublished price-sensitive information was shared. This was a follow-up to an earlier intimation dated September 4, 2026.
- Meeting conducted on September 9, 2026, at Ludhiana, Punjab
- Physical meeting and plant visit held with 6 institutional investor entities
- Participating entities included BTH Capital, Boring AMC, C.P. Madhwani, ICICI Securities PMS, Latent Advisors, and Whimsical Capital
- Discussions were limited strictly to publicly available information
Vardhman Special Steels Limited submitted its monthly dematerialisation report for August 2026 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. A total of 451 equity shares were dematerialized during the month upon verification of physical share certificates. Of this total, 438 shares were dematerialized via NSDL and 13 shares via CDSL. This is a standard secretarial compliance disclosure and carries no operational or financial impact on the business.
- Total of 451 equity shares dematerialized in August 2026
- 438 equity shares processed via NSDL across three certificate batches
- 13 equity shares processed via CDSL across two certificate batches
- Certificates cancelled and replaced by depositories as registered owners
Vardhman Special Steels Limited has informed the exchanges regarding an upcoming group meeting with institutional investors and analysts scheduled for September 9, 2026, at Ludhiana. The interaction will be followed by a plant visit for entities including Latent Advisors PMS, BTH Capital, Boring AMC, and ICICI Securities PMS. The company confirmed that only publicly available information will be discussed and no Unpublished Price Sensitive Information (UPSI) will be shared.
- Group meeting scheduled for September 9, 2026 at Ludhiana
- Meeting to be followed by a plant visit for participating institutions
- Participating funds include Latent Advisors PMS, BTH Capital, Boring AMC, and ICICI Securities PMS
- Only public domain information will be discussed with no UPSI shared
Vardhman Special Steels Limited (VSSL) has informed the exchanges regarding the dispatch of a communication to shareholders whose email addresses are not registered with the company or depository participants. The letter provides access to the 16th Annual General Meeting (AGM) Notice and the Annual Report for FY 2025-26. The 16th AGM is scheduled to take place on Friday, September 18, 2026, at 10:00 AM IST via video conference. The communication also reminds physical share certificate holders to update KYC details and register their PAN, bank details, and email addresses.
- 16th Annual General Meeting scheduled for Friday, September 18, 2026, at 10:00 a.m. IST via VC/OAVM
- Communication sent under SEBI Regulation 36(1)(b) for FY 2025-26 Annual Report access
- Reminder issued to physical mode security holders to update KYC forms (ISR-1, ISR-2, ISR-3, SH-13, SH-14) to avoid unpaid dividend withholdings
Vardhman Special Steels Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 pursuant to SEBI Listing Regulations. The report details operational sustainability metrics, noting GHG emissions of 0.737 tons of carbon per ton of steel via Electric Arc Furnace technology. In FY26, exports contributed 8% of total turnover, including 4% via its partner Aichi Forge network. Additionally, the company highlighted its solar power infrastructure setup with capacity to meet ~40% of its total energy requirements.
- Exports accounted for 8% of total turnover in FY26 (4% through Aichi Forge trading network)
- GHG emissions reported at 0.737 tons of carbon per ton of steel produced
- Solar power infrastructure capacity is positioned to satisfy ~40% of total energy needs
- Reported standalone turnover of ₹1,754.43 crore and net worth of ₹1,277.32 crore for CSR applicability
Vardhman Special Steels Limited (VSSL) has issued notice for its 16th Annual General Meeting (AGM) to be held on September 18, 2026, alongside releasing its FY25-26 Annual Report. For FY26, the company reported revenue of ₹1,754.43 crore, net profit of ₹122.02 crore, and recommended a dividend of ₹3.50 per share. Strategic disclosures highlight a planned ₹2,600 crore capital expenditure program, including a ₹2,000 crore 500,000 TPA greenfield plant by FY30 and a ₹475 crore forging unit with Aichi Steel by FY28. The company is now debt-free following a ₹385 crore equity infusion by Aichi Steel, which raised its stake near 25%.
- 16th AGM scheduled for September 18, 2026, with cut-off date fixed for September 11, 2026.
- FY25-26 operational performance delivered ₹1,754.43 crore in revenue, ₹208.82 crore EBITDA, and a record ₹122.02 crore PAT.
- Committed capital expenditure roadmap of ₹2,600 crore, featuring a ₹2,000 crore greenfield facility (500,000 TPA) targeted for FY30.
- Forging unit planned in partnership with Aichi Steel with a capex of ₹475 crore, targeted for completion by end of FY28.
- Turned net debt-free after Aichi Steel infused ₹385 crore in equity, taking its holding close to 25%.
Vardhman Special Steels Limited has fixed Friday, August 28, 2026, as the record date to determine shareholder eligibility for the dividend for the financial year ended March 31, 2026. The dividend remains subject to shareholder approval at the forthcoming Annual General Meeting (AGM). The Register of Members and Share Transfer Books will be closed from August 29, 2026, to September 5, 2026. Eligible shareholders will receive the dividend payment electronically within one week following the conclusion of the AGM.
- Record date fixed as Friday, August 28, 2026, for FY26 dividend entitlement
- Share transfer books closed from August 29, 2026, to September 5, 2026
- Dividend payout scheduled electronically within 1 week of AGM conclusion
Vardhman Special Steels Limited (VSSL) informed the exchanges that its management concluded a group analyst and investor meeting on August 14, 2026, at Hotel Trident, BKC, Mumbai. Participating institutions included Seraphic Family Office, Sagun Capital, Aagam Investments, and Nuvama Group. The company confirmed that only publicly available information was discussed and no unpublished price sensitive information (UPSI) was shared.
- Meeting conducted on Friday, August 14, 2026, at Hotel Trident, BKC, Mumbai
- Interaction held with 4 institutional entities: Seraphic Family Office, Sagun Capital, Aagam Investments, and Nuvama Group
- Continuation of prior intimation letter dated August 11, 2026
- Company affirmed that no unpublished price sensitive information (UPSI) was shared
Vardhman Special Steels Limited (VSSL) has scheduled a group meeting with five institutional investors and family offices in Mumbai on August 14, 2026. The participants include Seraphic Family office, Sagun Capital, Phoenix Capital, Aagam Investments, and Mavira AIF. This interaction occurs as the company, with a market cap of 3,011 Cr, prepares for its European market entry targeted for FY 2026-27. No unpublished price sensitive information (UPSI) is expected to be shared during the session.
- Group meeting scheduled for August 14, 2026, in Mumbai
- 5 specific investment entities participating including family offices and AIFs
- Company maintains a steelmaking capacity of 3 lakh TPA
- Targeting European automotive OEMs with business commencement expected in FY 2026-27
- Promoter holding remains stable at approximately 51.1%
Vardhman Special Steels Limited (VSSL) has filed its monthly dematerialization report for July 2026, as required under SEBI Regulations. A total of 118 equity shares were converted from physical to electronic form during the month. This includes 60 shares processed through NSDL and 58 shares through CDSL. Given the company's market capitalization of Rs 2,980 Cr, this administrative update is immaterial to the company's valuation or operations.
- Total of 118 equity shares dematerialized during the month of July 2026
- 60 shares were dematerialized through NSDL across four distinct certificate batches
- 58 shares were dematerialized through CDSL across three distinct certificate batches
- The filing complies with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
Vardhman Special Steels Limited (VSSL) reported a strong Q1 FY27 with revenue growing 12% YoY to ₹486 crore and PAT increasing 105% YoY to ₹41 crore. The company achieved an EBITDA per ton of ₹10,760, nearing the top of its guidance range, supported by sales volumes of 59,000 tons. Management is seeking environmental clearance to expand melting capacity from 3 lakh to 3.6 lakh tons and plans to increase solar power capacity by 50% within 1.5 years. The forging project with Aichi Steel is progressing with costs expected to be lower than initial estimates.
- Q1 FY27 PAT increased to ₹41 crore from ₹20 crore in the corresponding quarter last year.
- Sales volume grew 6.5% YoY to 59,000 tons, with revenue reaching ₹486 crore.
- EBITDA per ton stood at ₹10,760, with management aiming for a ₹8,000-12,000 range next year.
- Solar power now accounts for 43% of total consumption, with 2.3 crore units consumed this quarter.
- Applied for environmental approval to increase melting capacity to 360,000 tons from the current 300,000 tons.
Financial Performance
Revenue Growth by Segment
Overall revenue is expected to increase by 6-7% to reach INR 1,900-2,100 Cr over the medium term, following a ~7% increase in fiscal 2025. The automotive segment remains the primary driver, contributing over 85% of total revenue.
Geographic Revenue Split
Domestic sales dominate the profile with a focus on Indian automotive hubs; however, the company is expanding into Europe, with business expected to commence in FY 2026-27 following successful audits by a European OEM.
Profitability Margins
Operating margins are sensitive to a floor of 7-8%; a consistent fall below this level is a downward rating trigger. PAT improved in Q2 FY26 due to reduced finance costs from investing surplus funds into money market and liquid funds.
EBITDA Margin
EBITDA per tonne is expected to remain range-bound between INR 7,000 and INR 10,000. In fiscal 2025, EBITDA was healthy at ~INR 8,000 per tonne, though Q1 and Q2 FY26 saw volatility due to raw material price fluctuations.
Capital Expenditure
Planned capex is INR 80-100 Cr per annum for fiscals 2026 and 2027, following INR 100-120 Cr per annum in fiscals 2025 and 2026. This investment is aimed at maintaining the 3 lakh TPA capacity and technical upgrades.
Credit Rating & Borrowing
VSSL maintains a healthy financial profile with gearing expected to remain below 0.25 times and an interest coverage ratio above 10 times. The parent company, Vardhman Textiles Ltd (VTXL), is rated 'CRISIL AA+/Stable/CRISIL A1+'.
Operational Drivers
Raw Materials
Key raw materials include steel scrap and iron sponge. These are critical as the company maintains a two-month inventory, making it susceptible to price volatility.
Import Sources
Not specifically disclosed in available documents, though the company has 90% backward integration for billet manufacturing.
Key Suppliers
Not specifically named, but the company maintains longstanding relationships with a diverse supplier base to support its 3 lakh TPA steelmaking capacity.
Capacity Expansion
Current cumulative steelmaking capacity is approximately 3 lakh TPA (increased from 2.40 lakh TPA). Future growth is focused on utilization and technical upgrades rather than immediate massive volume expansion.
Raw Material Costs
Raw material costs are highly volatile; the company uses pass-through clauses and periodic price settlements to mitigate risks, though the ability to pass on 100% of hikes depends on underlying demand.
Manufacturing Efficiency
The company maintains high-capacity utilization. It recently migrated to SAP S/4HANA (July 1, 2025) to integrate ECC and NOW systems for stronger internal controls and management efficiency.
Logistics & Distribution
Not disclosed as a specific percentage of revenue, but distribution is tied to major automotive OEMs and engineering players.
Strategic Growth
Expected Growth Rate
6-7%
Growth Strategy
Growth will be achieved through a technical tie-up with Aichi Steel Corporation (Japan) to improve product quality for global OEMs, and entry into the European market with business expected to start in FY 2026-27. The company is also leveraging its 90% backward integration to improve business risk profiles.
Products & Services
Special and alloy steels, including billets and forged products, primarily for the automotive and engineering sectors.
Brand Portfolio
Vardhman, VSSL.
New Products/Services
Development of specialized steel grades for European OEMs; technical changes are being implemented by March 2026 to meet specific export requirements.
Market Expansion
Targeting European automotive OEMs with business expected to commence in the next financial year (FY 2026-27).
Market Share & Ranking
VSSL is a niche player in the alloy steel industry, holding approximately 4% of the total capacity in India.
Strategic Alliances
Strategic alliance with Aichi Steel Corporation (ASC), Japan (a Toyota group associate), which holds an 11.40% equity stake and provides technical assistance.
External Factors
Industry Trends
The industry is shifting toward higher-grade alloy steels for specialized automotive applications. VSSL is positioning itself through its ASC tie-up to move up the value chain and enter global supply chains.
Competitive Landscape
VSSL competes with other alloy steel producers in India; its competitive edge is its 'reputable client profile' and technical backing from Japan.
Competitive Moat
The moat is built on strong parentage (Vardhman Group), a strategic technical partnership with a Toyota group associate (ASC), and 90% backward integration, which are difficult for small-scale competitors to replicate.
Macro Economic Sensitivity
Highly sensitive to automotive industry cycles and GDP growth, as 85% of revenue is derived from auto-related offtake.
Consumer Behavior
Shift toward passenger vehicles and high-end two-wheelers drives demand for VSSL’s specialized alloy steels.
Geopolitical Risks
Potential trade barriers or slowdowns in Europe could impact the planned export expansion strategy for FY 2026-27.
Regulatory & Governance
Industry Regulations
Operations are subject to standard steel manufacturing pollution norms and automotive quality standards required by OEMs.
Taxation Policy Impact
Income tax paid was INR 32.82 Cr in FY 2024-25 compared to INR 31.64 Cr in the previous year.
Legal Contingencies
The company identifies revenue recognition as a 'Key Audit Matter' due to fraud risk presumptions in auditing standards, but no specific high-value pending litigation amounts were disclosed.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (steel scrap/iron sponge) and cyclicality in the automotive sector are the primary risks, with potential margin impact if EBITDA falls below INR 7,000/tonne.
Geographic Concentration Risk
High concentration in the Indian market, specifically regions serving automotive OEMs, though the European entry aims to diversify this.
Third Party Dependencies
Significant dependency on the Vardhman Group for 'need-based support' and common treasury/banking operations.
Technology Obsolescence Risk
Mitigated by the technical alliance with Aichi Steel Corporation and the recent upgrade to SAP S/4HANA for better operational control.
Credit & Counterparty Risk
Receivables are generally from large, reputed automotive OEMs, indicating high credit quality; trade receivables decreased by INR 0.84 Cr in FY 2024-25.
