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Vardhman Special Steels Q2 FY27 results: net profit up 51.9% to ₹52.49 crore, revenue up 38.8%
Vardhman Special Steels Limited reported standalone Q2 FY27 revenue of ₹600.05 crore, up 38.8% from a year earlier and 23.5% from Q1 FY27. Net profit rose to ₹52.49 crore from ₹34.56 crore in Q2 FY26, while EBITDA margin increased to 11.5% from 10.5% but fell from 12.0% in the previous quarter.
Key points
- Standalone Q2 FY27 revenue was ₹600.05 crore, up 38.8% from Q2 FY26 and 23.5% from Q1 FY27.
- EBITDA was ₹69.12 crore, up 52.7% year on year and 18.3% from the previous quarter.
- Net profit was ₹52.49 crore, up 51.9% from Q2 FY26 and 27.4% from Q1 FY27; basic EPS was ₹5.43.
- In H1 FY27, revenue was ₹1,086.06 crore and net profit was ₹93.68 crore, up 25.4% and 72.0% from H1 FY26.
How did Vardhman Special Steels perform in Q2 FY27?
Vardhman Special Steels reported standalone revenue from operations of ₹600.05 crore in Q2 FY27, against ₹432.27 crore in Q2 FY26 and ₹486.01 crore in Q1 FY27. Total income was ₹614.79 crore, while EBITDA rose to ₹69.12 crore from ₹45.26 crore a year earlier. EBITDA margin was 11.5%, up 1.0 percentage point from Q2 FY26 but down 0.5 percentage point from Q1 FY27.
Profit before tax was ₹70.56 crore, compared with ₹46.50 crore in Q2 FY26 and ₹55.40 crore in Q1 FY27. After tax of ₹18.06 crore, the company reported a net profit of ₹52.49 crore, against ₹34.56 crore and ₹41.19 crore respectively. Basic EPS was ₹5.43, up from ₹3.61 a year earlier and ₹4.26 in the previous quarter. No consolidated figures were provided in the supplied data.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 600.05 | 486.01 | 432.27 | +38.8% | +23.5% |
| Other income | 14.74 | 9.86 | 11.22 | +31.4% | +49.5% |
| Total expenses | 544.23 | 440.46 | 396.99 | +37.1% | +23.6% |
| EBITDA | 69.12 | 58.43 | 45.26 | +52.7% | +18.3% |
| EBITDA margin | 11.5% | 12.0% | 10.5% | +1.0 pp | −0.5 pp |
| Profit before tax | 70.56 | 55.40 | 46.50 | +51.7% | +27.4% |
| Tax | 18.06 | 14.21 | 11.94 | +51.3% | +27.1% |
| Net profit | 52.49 | 41.19 | 34.56 | +51.9% | +27.4% |
| EPS (₹) | 5.43 | 4.26 | 3.61 | +50.4% | +27.5% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Vardhman Special Steels' costs and profit?
Total expenses were ₹544.23 crore in Q2 FY27, up ₹147.24 crore from ₹396.99 crore in Q2 FY26. Cost of materials consumed increased by ₹58.16 crore to ₹318.89 crore, employee cost by ₹10.11 crore to ₹39.26 crore, finance costs by ₹1.78 crore to ₹3.68 crore and depreciation by ₹1.54 crore to ₹9.62 crore. Other expenses were ₹136.39 crore, higher by ₹27.36 crore, while total expenses also included changes in inventories of finished goods and work-in-progress.
Other income increased by ₹3.52 crore to ₹14.74 crore from ₹11.22 crore in Q2 FY26. Tax expense was ₹18.06 crore, up ₹6.12 crore from ₹11.94 crore. There was no exceptional item in either quarter. The company’s investor presentation attributed Q2 performance to healthy sales-volume growth, improved realisations, lower-cost raw-material inventory carried forward from the previous quarter and operating benefits from the Kocks Block and reheating-furnace capex.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 318.89 | 260.73 | +58.16 | +22.3% |
| Employee cost | 39.26 | 29.15 | +10.11 | +34.7% |
| Finance costs | 3.68 | 1.90 | +1.78 | +93.7% |
| Depreciation | 9.62 | 8.08 | +1.54 | +19.1% |
| Other expenses | 136.39 | 109.03 | +27.36 | +25.1% |
| Total expenses | 544.23 | 396.99 | +147.24 | +37.1% |
| Other income | 14.74 | 11.22 | +3.52 | +31.4% |
| Tax | 18.06 | 11.94 | +6.12 | +51.3% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In H1 FY27, Vardhman Special Steels reported revenue of ₹1,086.06 crore, total income of ₹1,110.65 crore and profit before tax of ₹125.96 crore. Revenue was ₹220.09 crore higher than H1 FY26, while total income rose by ₹225.96 crore and profit before tax increased by ₹52.69 crore.
Net profit for H1 FY27 was ₹93.68 crore, compared with ₹54.46 crore in H1 FY26, and basic EPS was ₹9.69 against ₹6.04. Revenue growth was 25.4%, total-income growth was 25.5%, profit-before-tax growth was 71.9%, and net-profit growth was 72.0%.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 1,086 | 865.97 | +25.4% |
| Profit before tax | 125.96 | 73.27 | +71.9% |
| Net profit | 93.68 | 54.46 | +72.0% |
| EPS (₹) | 9.69 | 6.04 | +60.4% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹1,788.68 crore, compared with ₹1,633.12 crore at 31 March 2026. Total equity rose to ₹1,338.40 crore from ₹1,277.32 crore, while borrowings increased to ₹162.93 crore from ₹92.65 crore. Cash and cash equivalents were ₹20.73 crore, compared with ₹6.27 crore at the previous balance-sheet date.
Inventories declined to ₹331.70 crore from ₹350.24 crore, while trade receivables increased to ₹410.61 crore from ₹277.84 crore. Trade payables fell to ₹127.16 crore from ₹184.21 crore. In H1 FY27, operating cash flow was ₹33.97 crore, compared with ₹70.91 crore in H1 FY26; investing cash flow was negative ₹48.56 crore against negative ₹188.39 crore, and financing cash flow was ₹29.06 crore against ₹306.95 crore. Capital expenditure was ₹95.94 crore, compared with ₹134.40 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 1,789 | 1,633 |
| Total equity | 1,338 | 1,277 |
| Borrowings | 162.93 | 92.65 |
| Cash and equivalents | 20.73 | 6.27 |
| Inventories | 331.70 | 350.24 |
| Trade receivables | 410.61 | 277.84 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 33.97 | 70.91 |
| Cash from investing | −48.56 | −188.39 |
| Cash from financing | 29.06 | 306.95 |
| Capital expenditure | 95.94 | 134.40 |
Source: Company's results filing (XBRL).
How has Vardhman Special Steels done over the last 8 quarters?
Revenue increased in each of the last four quarters on a year-on-year basis and profit increased in each of the last five quarters. Quarterly revenue moved from ₹426.77 crore in Q3 FY25 to ₹600.05 crore in Q2 FY27, with the latest reading also above ₹486.01 crore in Q1 FY27. The supplied series shows the highest quarterly revenue and net profit in Q2 FY27.
Net profit was at ₹52.49 crore in Q2 FY27, compared with ₹41.19 crore in Q1 FY27 and a low of ₹19.73 crore in the listed series in Q4 FY25. EBITDA margin reached 12.0% in Q1 FY27 before easing to 11.5% in Q2 FY27; the listed low was 7.3% in Q4 FY25 and Q1 FY26.
What else did the company announce?
Vardhman Special Steels filed the unaudited Q2 and H1 FY27 results with a limited review report on 27 October 2026. The Board approved the results at a meeting held on 27 October 2026. The same-day filings did not announce a dividend or a completed fund raise.
The Board appointed Iwao Shimamoto as a non-executive non-independent director with effect from 27 October 2026, subject to approval by shareholders. The appointment followed the company’s Share Subscription and Investment Agreement with Aichi Steel Corporation. The same-day investor presentation reported Q2 FY27 revenue growth of 39% and PAT growth of 52% on stronger volumes.
What did Vardhman Special Steels' management say?
The company expects greenfield steel-plant capex to exceed INR2,000 crore, with the revised design and cost estimate due by March-April 2027. Completion is targeted for September 2029 and stabilisation by March 2030. Funding may move to 1:1 debt-equity through a rights issue in H2 2027, while suspension of the dividend for three to four years awaits the April 2027 Board decision.
How did Vardhman Special Steels shares react?
By the next day’s close, the stock was down 5.4% from its pre-results close, while the industry median was up 2.0%; the excess industry move was negative 7.5 percentage points. By the fifth session, it was up 1.0% from the pre-results close, compared with a 3.1% industry median gain, leaving excess performance of negative 2.1 percentage points.
Earlier reaction-day moves were mixed: 7.5% on 28 April 2026, negative 5.5% on 20 January 2026, negative 5.0% on 28 October 2025 and negative 4.5% on 25 July 2025. The stock also moved 0.0% on 22 July 2026 and 1.5% on 29 January 2025.
| After the filing | Stock | Iron & Steel Products median |
|---|---|---|
| 5 minutes | +6.1% | |
| 15 minutes | +4.9% | |
| 30 minutes | +3.5% | |
| Reaction day | +4.8% | +2.7% |
| Next day | −5.4% | +2.0% |
| 5 days | +1.0% | +3.1% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 22 July 2026 | +0.0% |
| 28 April 2026 | +7.5% |
| 20 January 2026 | −5.5% |
| 28 October 2025 | −5.0% |
| 25 July 2025 | −4.5% |
| 29 January 2025 | +1.5% |
| 7 November 2024 | −4.0% |
| 25 July 2024 | +0.2% |
Source: MarketPing price-reaction measurement.
How did other Iron & Steel Products companies do?
Twenty-six other Iron & Steel Products companies had filed for the quarter by 4 November 2026. Their median revenue growth was 23.5%, compared with Vardhman Special Steels’ 38.8% revenue growth in Q2 FY27. Of the peers whose revenue growth could be compared, 19 grew more slowly than the company and 7 grew faster than the company.
Twenty of the 31 peers whose profit was compared reported higher profit. The company’s own Q2 FY27 net profit was ₹52.49 crore, up 51.9% from ₹34.56 crore in Q2 FY26.
| Vardhman Special Steels revenue growth (YoY) | +38.8% |
|---|---|
| Median of 26 other Iron & Steel Products companies | +23.5% |
| Companies with slower revenue growth than Vardhman Special Steels | 19 of 26 |
| Companies with faster revenue growth than Vardhman Special Steels | 7 of 26 |
| Companies whose net profit rose | 20 of 31 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Vardhman Special Steels' revenue in Q2 FY27?
Revenue from operations was ₹600.05 crore, up 38.8% from ₹432.27 crore in Q2 FY26 (standalone).
Did Vardhman Special Steels make a profit in Q2 FY27?
Yes. Net profit was ₹52.49 crore, against a net profit of ₹34.56 crore in Q2 FY26.
What was Vardhman Special Steels' EPS in Q2 FY27?
Basic earnings per share were ₹5.43, against ₹3.61 in Q2 FY26.
How did Vardhman Special Steels shares react to the Q2 FY27 results?
On the reaction day the stock moved +4.8% from the previous close; the median Iron & Steel Products stock moved +2.7%.
When did Vardhman Special Steels announce its Q2 FY27 results?
On 27 October 2026, in a filing to the BSE.
Sources
- Board Meeting Intimation for Consideration And Approval Of The Un- Audited Financial Results Of The Company For The Quarter/ Half-Year Ended 30Th September, 2026. (BSE, 16 October 2026) · PDF
- Results - Financial Results For The Period Ended 30.09.2026. (BSE, 27 October 2026) · PDF
- Board Meeting Outcome for Outcome Of The Board Meeting- Financial Results For The Period Ended 30.09.2026. (BSE, 27 October 2026) · PDF
- The earnings call (2 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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