Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26):

  • Sales Volume: 70,601 tonnes (includes 160 MT billets) vs 55,536 tonnes, up 27.13% YoY
  • Rolled Products Volume: 70,440 tonnes vs 55,536 tonnes, up 26.84% YoY
  • Revenue from Operations: Rs. 600.05 crore vs Rs. 432.27 crore, up 38.81% YoY
  • EBITDA (including other income): Rs. 83.86 crore vs Rs. 56.48 crore, up 48.48% YoY
  • PAT: Rs. 52.49 crore vs Rs. 34.56 crore, up 51.88% YoY
  • Basic EPS: Rs. 5.43 vs Rs. 3.61, up 50.42% YoY
  • EBITDA per ton (on rolled sales): Rs. 11,346

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Sales Volume: 1,29,704 tonnes (includes 160 MT billets) vs 1,11,109 tonnes, up 16.74% YoY
  • Rolled Products Volume: 1,29,544 tonnes vs 1,11,109 tonnes, up 16.59% YoY
  • Revenue from Operations: Rs. 1,086.06 crore vs Rs. 865.97 crore, up 25.41% YoY
  • EBITDA (including other income): Rs. 152.15 crore vs Rs. 95.81 crore, up 58.80% YoY
  • PAT: Rs. 93.68 crore vs Rs. 54.46 crore, up 72.02% YoY
  • Basic EPS: Rs. 9.69 vs Rs. 6.04, up 60.43% YoY
  • EBITDA per ton (on rolled sales): Rs. 11,053

Performance Drivers

Volume Growth:

  • Q2 FY27 volumes increased due to higher production and increased customer demand
  • Rolled products volume showed strong growth of 26.84% YoY in Q2 and 16.59% YoY in H1

Revenue Growth Factors:

  • Higher sales volumes across both quarters
  • Improved realizations contributing to revenue growth

Profitability Drivers:

  • Higher sales volumes and realizations
  • Higher GST refund benefits
  • Benefit of lower-cost raw material inventory carried forward from previous quarter
  • Progressive realization of benefits from last year's capex on Kocks Block and reheating furnace
  • EBITDA per ton remained strong at Rs. 11,346 (Q2) and Rs. 11,053 (H1) on rolled sales

Strategic Developments

New Forging Facility:

  • Foundation stone laid for upcoming forging facility in Ludhiana by Hon'ble Chief Minister of Punjab, S. Bhagwant Singh Mann
  • Being developed in collaboration with Aichi Steel Corporation
  • Represents forward integration into higher-value forged components
  • Aims to strengthen engagement with automotive customers

Management Commentary

Mr. Sachit Jain, Chairman & Managing Director, highlighted:

  • Strong performance driven by healthy growth in sales volumes, revenue, and profitability
  • Robust customer demand and improved realizations supporting growth
  • Continued focus on cost optimization and operational efficiencies
  • Future focus on strengthening core operations and progressing with greenfield special steel facility
  • Expansion of value-added product portfolio and diversification into railways, oil & gas, and industrial segments
  • Emphasis on operational excellence, innovation, and sustainability

Company Background

Vardhman Special Steels Limited is among India's leading producers of special steels and a pioneer in green steel manufacturing. The company caters to diverse sectors including automotive, engineering, tractors, bearings, and allied industries. The company also serves international markets including Thailand, Taiwan, Turkey, Italy, Russia, Germany, Vietnam, and Japan. Product suite includes billets, steel bars, rods, and bright bars of various categories of special and alloy steels.

Customer Base

The company has long-term relationships with reputed customers including Toyota, Maruti, Hyundai, Hero Moto Corp, Caterpillar, Hino Motors, and Bajaj, among others.