Vardhman Special Steels Limited has informed the Exchange about Transcript
VSSL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Vardhman Special Steels reported record production and sales for FY25, with total sales volume of 215,000 tons (up 11% YoY) and revenue up 6.2% due to mid-year price cuts. EBITDA came in at INR 177 crores (INR 8,200/ton) and PAT at INR 93.09 crores. The Board approved a INR 2,000 crore greenfield plant in Punjab, set to start production by FY29-30, which will make green steel with solar power, produce wire rods and higher-diameter products (up to 130mm vs current 90mm cap), and will be funded through a mix of equity and debt. Management guided to a higher EBITDA/ton range of INR 8,000-11,000 from FY27 (vs current INR 7,000-10,000), with volume targets of 225,000 tons in FY26 and 250,000 tons in FY27. The company declared its first INR 3 dividend (26% payout) and aims to be net debt-free within 3 years excluding the new project.
The new INR 2,000 crore greenfield plant signals a major capacity expansion likely requiring future equity dilution, but positions the company for long-term growth in green steel and import substitution. Improved EBITDA/ton guidance and a clear path to net debt-free status by FY28 are positives for existing shareholders, while near-term volume growth is limited until the rolling mill ramp-up completes in FY27.