Vardhman Special Steels Limited has informed the Exchange about Investor Presentation
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Vardhman Special Steels reported Q1 FY26 total revenue of Rs. 441.20 crore, up 4.93% year-on-year, driven by a strong 10.49% volume growth to 55,574 tonnes. However, profitability came under pressure due to lower realisations — EBITDA fell 18.13% to Rs. 39.33 crore and profit after tax declined 23.71% to Rs. 19.90 crore, with EBITDA per ton at Rs. 7,077. The company fully repaid both its long-term and short-term borrowings in early July, which is expected to reduce finance costs in coming quarters. Japanese strategic partner Aichi Steel increased its stake from 11.33% to 24.90% by investing Rs. 384.91 crore, marking a deeper partnership. The company also announced a major Greenfield expansion of 5,00,000 MTPA billet capacity in Punjab with an estimated Rs. 2,000 crore capex, targeted for commissioning by FY29-30.
While Q1 margins were hit by lower realisations, the debt-free balance sheet, deeper Aichi partnership, and large Greenfield capex plan signal strong long-term growth potential, though near-term earnings may remain under pressure until new capacity and higher realisations kick in.