Vardhman Special Steels Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Vardhman Special Steels Ltd filed with BSE on 29 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Vardhman Special Steels reported Q1 FY27 sales volumes of 59,000 tons, up 6.5% year on year, and revenue from operations of Rs 486 crore, up 12%, driven by higher volumes and sales prices. EBITDA for the quarter was Rs 68 crore and PAT was Rs 41 crore, with EBITDA per ton at Rs 10,760 excluding certain treasury income adjustments management removed from the calculation. Management discussed the Aichi Steel forging joint venture, capacity expansion plans, a new greenfield steel plant, solar power expansion, and diversification into non-automotive steel products such as die steel and railway axle steel.
Numbers mentioned
Sales volume: 59,000 tons (Q1 FY27)
p. 4
“This quarter, we have achieved 59,000 tons of sales, which is higher than the corresponding quarter of last year by”
Sanjeev Singla, page 4 of the filed PDF · View the filing
Revenue from operations: INR486 crores (Q1 FY27)
p. 5
“revenue from operations is at INR486 crores, higher by 12%, it's a combination of”
Sanjeev Singla, page 5 of the filed PDF · View the filing
EBITDA: INR68 crores (Q1 FY27)
p. 5
“our EBITDA this quarter is -- for the quarter is INR68 crores for quarter and INR41 crores”
Sanjeev Singla, page 5 of the filed PDF · View the filing
PAT: INR41 crores (Q1 FY27)
p. 5
“is the PAT. Overall EBITDA per ton as Sachit has already explained, it's INR10,760 per ton.”
Sanjeev Singla, page 5 of the filed PDF · View the filing
PAT: INR41 crores (Q1 FY27)
p. 5
“And PAT is INR41 crores in this quarter as against INR34 crores in the immediate preceding quarter and INR20 crores in the corresponding quarter of last year.”
Sanjeev Singla, page 5 of the filed PDF · View the filing
EBITDA per ton: INR10,700 (Q1 FY27)
p. 4
“our EBITDA per ton for this quarter comes to INR10,700.”
Sachit Jain, page 4 of the filed PDF · View the filing
Solar power generation: 2.3 crores units (Q1 FY27)
p. 4
“we've had 2.3 crores units this quarter and roughly”
Sachit Jain, page 4 of the filed PDF · View the filing
Share of power from solar: 43% (Q1 FY27)
p. 4
“43% of our total power consumption is coming from solar.”
Sachit Jain, page 4 of the filed PDF · View the filing
Carbon footprint: below 0.5
p. 4
“Already, our carbon footprint is below 0.5.”
Sachit Jain, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA per ton range — INR8,000 to INR12,000 · next year
stated as an aspiration by Sachit Jain
p. 4
“But next year, we should be able to increase the range from 8,000 to 12,000.”
Sachit Jain, page 4 of the filed PDF · View the filing
EBITDA per ton range — 9,000 to 12,000 · the year after next year
stated as an aspiration by Sachit Jain
p. 10
“Once the solar plant gets commissioned, then we would like to change the range to 9,000 to 12,000 rather than 8,000 to 12,000.”
Sachit Jain, page 10 of the filed PDF · View the filing
Sales volume target — 255,000 tons · FY27
stated firmly by Sachit Jain
p. 7
“This year we are targeting about 255,000 tons for this year.”
Sachit Jain, page 7 of the filed PDF · View the filing
Sales volume target — 270,000 tons · FY28
stated firmly by Sachit Jain
p. 7
“Next year we expect to cross 270,000.”
Sachit Jain, page 7 of the filed PDF · View the filing
Sales volume target — about 290,000 tons · next year
stated conditionally by Sachit Jain
p. 10
“So, if the approval comes in, then we will up the sales target for next year from 270, we will come up to something like 290 because we can improve production up to a point without any further capex.”
Sachit Jain, page 10 of the filed PDF · View the filing
Sales volume target — 330,000 to 340,000 tons · FY29
stated conditionally by Sachit Jain
p. 11
“So, we should be able to reach 330, 340 in the year '29, '30 -- '28, '29.”
Sachit Jain, page 11 of the filed PDF · View the filing
Rolling mill input capacity — 330,000 tons
stated as an aspiration by Sachit Jain
p. 13
“they are confident that we will hit 330,000 tons capacity of input.”
Sachit Jain, page 13 of the filed PDF · View the filing
Forging plant commissioning — last quarter of FY27-28
stated firmly by Sachit Jain
p. 6
“Forging project is likely to get commissioned by last quarter of '27-‘28.”
Sachit Jain, page 6 of the filed PDF · View the filing
New steel plant commissioning — FY29-30
stated firmly by Sachit Jain
p. 4
“As of now, we are still on track to commission the project in the financial year '29-'30.”
Sachit Jain, page 4 of the filed PDF · View the filing
New NDT and peeling lines commissioning — September-October 2026
stated firmly by Sachit Jain
p. 3
“New NDT line will be commissioned by September, October of this year. And new peeling line will be commissioned by September, October of this year.”
Sachit Jain, page 3 of the filed PDF · View the filing
Forging project cost savings — more than 10%
stated conditionally by Sachit Jain
p. 6
“The saving is more than 10%.”
Sachit Jain, page 6 of the filed PDF · View the filing
Solar plant capacity expansion — almost 50% · about a year or 1.5 years
stated conditionally by Sachit Jain
p. 4
“We expect in about a year or 1.5 years' time, we'll be going ahead and we'll be increasing the capacity by almost 50% of our solar plant.”
Sachit Jain, page 4 of the filed PDF · View the filing
European OEM commercial supply — H2 FY27
stated conditionally by Sachit Jain
p. 9
“I don't have an exact update, but that should happen by later part of this financial year.”
Sachit Jain, page 9 of the filed PDF · View the filing
Q2 realizations — Q2 FY27
stated firmly by Sachit Jain
p. 14
“Q2 will be higher prices.”
Sachit Jain, page 14 of the filed PDF · View the filing
Ingot casting for die steel — Q3 FY27
stated firmly by Sachit Jain
p. 11
“In Q3, we should have the ingot casting ready.”
Sachit Jain, page 11 of the filed PDF · View the filing
Import substitution for Maruti commercial production — Q4 FY27
stated conditionally by Sachit Jain
p. 14
“the next volume increase is going to come from the commercial production beginning for the import substitution for Maruti, which will happen -- start happening in the fourth quarter of the financial year.”
Sachit Jain, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Total exports are about 6-7% direct plus 5% indirect through Aichi's trading arm; management admitted its earlier export estimates were off.
Answered by Sanjeev Singla
Asked by Shivam Singh: How much of the company's sales were exports this quarter?
p. 5
“So, the total exports is still accounting for about 6% to 7% direct export and another 5% is going as indirect exports through -- which is going to Aichi through the trading arm in India.”
Sanjeev Singla, page 5 of the filed PDF · View the filing
Management said the business is well diversified and Maruti is targeted to grow to a bigger share but is currently only about 10%.
Answered by Sachit Jain
Asked by Shivam Singh: What is the customer concentration risk given the Aichi-Toyota link?
p. 5
“As of now, it's a small percentage. That's about 10%. So, we don't have any concentration risk.”
Sachit Jain, page 5 of the filed PDF · View the filing
Land and machinery finalization for the new plant is in final stages; the environmental clearance application for the brownfield expansion has been filed.
Answered by Sachit Jain
Asked by Divyansh Gupta: What is the status of the brownfield expansion from 3 lakh to 3.6 lakh tons and land acquisition for the new plant?
p. 6
“We have made the application. And so, in all probability in the next 3, 4 months, we should get the approval”
Sachit Jain, page 6 of the filed PDF · View the filing
Management said growth will come from diversifying into non-automotive steel like die steel and railway/windmill steel, plus eventual capacity expansion and the forging plant.
Answered by Sachit Jain
Asked by Deepak Poddar: What will drive revenue growth given capacity constraints and only 7-8% growth targeted for FY28?
p. 7
“Today, we have only automotive steel as an engine of growth. Tomorrow, we will have a second engine, which is non-automotive steel.”
Sachit Jain, page 7 of the filed PDF · View the filing
Management cited bigger production spreading fixed costs, falling operating costs, and reduced job work/outsourcing as the three levers, plus a future solar plant as a fourth.
Answered by Sachit Jain
Asked by Ritwik Sheth: What are the key drivers behind raising the EBITDA per ton guidance range to 8,000-12,000?
p. 9
“The key drivers are 3. First, that we will have bigger production and therefore, the fixed cost will be spread over a bigger volume.”
Sachit Jain, page 9 of the filed PDF · View the filing
Management said die steel prices are far higher than average steel prices but volumes are small and margins, while higher, are not proportionally as large due to added processing costs.
Answered by Sachit Jain
Asked by Gagam Shah: What is the potential upside from non-automotive product areas like die steel?
p. 11
“To just give you an idea, die steel prices are -- currently, our average price is about INR85,000 a ton. Die steels are about INR2.5 lakh a ton, non-ESR.”
Sachit Jain, page 11 of the filed PDF · View the filing
Management said there is no formal order book system but demand is strong enough that they are refusing orders, and Q2 realizations are expected to be higher due to price increases from July 1st.
Answered by Sachit Jain
Asked by Damodar Das: What is the current order book visibility and outlook on realizations for the next two quarters?
p. 14
“We are completely booked out and we are refusing orders.”
Sachit Jain, page 14 of the filed PDF · View the filing
Risks flagged
Rising input costs due to metal price inflation and rupee depreciation increasing new plant project costs
p. 4
“maybe a little higher because of Iran war. Metals have gone up everywhere as well as rupee has depreciated.”
Sachit Jain, page 4 of the filed PDF · View the filing
Testing and peeling capacity bottlenecks limiting ability to move finished material to customers
p. 3
“Currently, we continue to have pile up of material that is ready as the customer wants, but because of lack of testing capacity it's not able to go through.”
Sachit Jain, page 3 of the filed PDF · View the filing
Current license capacity constrains volume growth until environmental approval is received
p. 8
“So just now, we are constrained because our capacity is 3 lakh tons, which is the license capacity. We can't go more than that.”
Sachit Jain, page 8 of the filed PDF · View the filing
Reduced solar cost savings due to new government localization rules on solar cells
p. 9
“So, the cost of panels is now higher than earlier. So, the savings on account of the solar will be lower than in the first phase, which came up.”
Sachit Jain, page 9 of the filed PDF · View the filing
Uncertainty over environmental approval timeline for capacity expansion
p. 6
“but again, you haven't got it until you have got it. So, fingers crossed till that time”
Sachit Jain, page 6 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.