Vardhman Special Steels Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Vardhman Special Steels Ltd filed with BSE on 04 May 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 record annual profit of about INR122 crore on volume of 225,000 tons for FY26, matching its budgeted target. Management raised its EBITDA per ton guidance range to INR8,000-11,000 for the current year, from INR7,000-10,000 previously, and said it expects this to rise further to INR9,000-12,000 within two years. The company also outlined capex plans for a new forging plant, a greenfield steel plant targeted for July 2029, and a possible melting capacity expansion pending environmental approval.
Numbers mentioned
Net profit: INR122-odd crores (FY26)
p. 3
“record profits, INR122-odd crores.”
Sachit Jain, page 3 of the filed PDF · View the filing
Sales volume: 225,000 tons (FY26)
p. 3
“Volume has been the highest, 225,000 tons, which was our budget.”
Sachit Jain, page 3 of the filed PDF · View the filing
Rolling capacity after reheating furnace commissioning: 2,70,000 tons
p. 3
“It will improve our rolling capacity to 2,70,000 tons of finished product.”
Sachit Jain, page 3 of the filed PDF · View the filing
Solar power generation: 9 crore units per year
p. 3
“We will be getting 9 crore units of power per year.”
Sachit Jain, page 3 of the filed PDF · View the filing
Dividend: INR3.50 a share (FY26)
p. 5
“our Board decided to recommend a dividend of INR3.50 a share.”
Sachit Jain, page 5 of the filed PDF · View the filing
Aichi shareholding: 24.9%
p. 5
“Aichi increased their shareholding to 24.9% which is a statement of tremendous confidence from their side also there.”
Sachit Jain, page 5 of the filed PDF · View the filing
Heat size increase: 37 tons to 40 tons
p. 4
“we have increased the heat size from 37 tons to 40 tons.”
Sachit Jain, page 4 of the filed PDF · View the filing
Forging plant spend to date: INR50 crores to INR80 crores
p. 9
“Maybe about INR50 crores. INR80 crores have been spent.”
Sachit Jain, page 9 of the filed PDF · View the filing
Forging project budgeted cost: INR475 crores
p. 9
“for the forging project, INR475 crores was the budgeted expenditure.”
Sachit Jain, page 9 of the filed PDF · View the filing
FY27-28 capex estimate: more than INR700 crores to INR800 crores (FY27-28)
p. 10
“So ballpark figure so we don't have a calculation, but the ballpark figure will be more than INR700 crores to INR800 crores.”
Sanjeev Singla, page 10 of the filed PDF · View the filing
Government subsidy incentive FY26: INR24 crores (FY26)
p. 15
“It is INR24 crores.”
Sanjeev Singla, page 15 of the filed PDF · View the filing
Government subsidy incentive FY27: close to INR13 crores (FY27)
p. 15
“The total incentive will be close to INR13 crores.”
Sanjeev Singla, page 15 of the filed PDF · View the filing
Equity infusion already received: INR385 crores
p. 15
“we see about INR1,200 crores of equity infusion, out of which INR385 crores has already come in.”
Sachit Jain, page 15 of the filed PDF · View the filing
Total committed investment: INR2,600 crores
p. 16
“as of now, the committed investment is about INR2,600 crores.”
Sachit Jain, page 16 of the filed PDF · View the filing
Vardhman Group equity commitment: INR300 crores to INR400 crores
p. 15
“Vardhman Group has committed INR300 crores to INR400 crores.”
Sachit Jain, page 15 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 — INR8,000 to INR11,000 a ton · this year
stated firmly by Sachit Jain
p. 4
“So this year, our guidance is now up from last year, which is INR8,000 to INR11,000 a ton EBITDA.”
Sachit Jain, page 4 of the filed PDF · View the filing
EBITDA per ton — 9,000 to 12,000 · 2 years from now
stated as an aspiration by Sachit Jain
p. 4
“And from 2 years from now, I think we are confident now that this range can be increased further to 9,000 to 12,000.”
Sachit Jain, page 4 of the filed PDF · View the filing
Sales volume — 250,000 tons · this year
stated firmly by Sachit Jain
p. 6
“Going forward, 225 we closed this year, last year. And this year, we would like to cross 250, maybe 255 we target.”
Sachit Jain, page 6 of the filed PDF · View the filing
New steel plant commissioning — July 2029
stated conditionally by Sachit Jain
p. 4
“We seem to be on track that we will start our plant in July 2029 as of now.”
Sachit Jain, page 4 of the filed PDF · View the filing
Forging plant production start — Jan-March 2028
stated conditionally by Sachit Jain
p. 4
“And Jan-March of '28, we hope to start the production from the forging line.”
Sachit Jain, page 4 of the filed PDF · View the filing
Melting capacity expansion — 3,60,000 tons
stated conditionally by Sachit Jain
p. 3
“So we will soon be applying for environmental approval, which is not sure that we'll get. But if we get that environmental approval, we will increase the production in this plant.”
Sachit Jain, page 3 of the filed PDF · View the filing
Non-automotive steel mix — 30% non-automotive, 70% automotive · next 10 years
stated as an aspiration by Sachit Jain
p. 4
“we have taken a strategic view that over the next 10 years, we will be about 30% non-automotive steel, 70% will be automotive steel.”
Sachit Jain, page 4 of the filed PDF · View the filing
Debt-equity ratio — below 0.75
stated firmly by Sachit Jain
p. 15
“At the peak, debt-equity, we will keep it below 0.75 total debt to equity.”
Sachit Jain, page 15 of the filed PDF · View the filing
EBITDA on capital employed — above 20% · after FY30
stated as an aspiration by Sachit Jain
p. 16
“we hope to continue to be above 20%.”
Sachit Jain, page 16 of the filed PDF · View the filing
Environmental license application — in 2 months' time
stated firmly by Sachit Jain
p. 8
“So we will be applying in 2 months' time.”
Sachit Jain, page 8 of the filed PDF · View the filing
Land acquisition for greenfield plant — within May
stated firmly by Sachit Jain
p. 9
“We are in the last stages. It should happen in the next within May, we should be closing it.”
Sachit Jain, page 9 of the filed PDF · View the filing
Forging plant ramp-up — FY28-29
stated firmly by Sachit Jain
p. 13
“We very clearly said if we're going to start operations in Jan to March of '28, ramp-up will be '28-'29.”
Sachit Jain, page 13 of the filed PDF · View the filing
Existing plant volume — 270 or 275 · next 2 years
stated firmly by Sachit Jain
p. 14
“For your calculations, please assume static at 270 or 275.”
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.
Management said this year's target is around 250,000-255,000 tons, using 250,000 for calculation purposes.
Answered by Sachit Jain
Asked by Saket Kapoor: What volume ramp-up should be expected for rolled products going forward?
p. 6
“250,000 tons for this year, you should please keep that figure in mind, though we will try to target to sell a bit more, but we will see as we go along.”
Sachit Jain, page 6 of the filed PDF · View the filing
Management said no meaningful mix change is expected for several years, with visible impact only after 5-7 years.
Answered by Sachit Jain
Asked by Sanaa: What changes in product mix are expected going forward?
p. 6
“Impact will take about 5 years for the outside world to see the impact.”
Sachit Jain, page 6 of the filed PDF · View the filing
Management confirmed commissioning is targeted for July 2029, with volumes phased in gradually.
Answered by Sachit Jain
Asked by Nishita: When will the new 500,000 ton capacity commission, and what is the growth trajectory?
p. 7
“We are expecting that to commission by July '29.”
Sachit Jain, page 7 of the filed PDF · View the filing
Management said limited spend so far against a budgeted cost of INR475 crore, with actual spend likely lower.
Answered by Sachit Jain
Asked by Shlok Bhartiya: How much capex has been spent on the forging plant and what is left?
p. 9
“So total project cost was about INR475 crores, plus our NDT line is also in that same premises.”
Sachit Jain, page 9 of the filed PDF · View the filing
Management said direct exports will remain a lower proportion, with growth instead coming through indirect exports via components and OEM partnerships.
Answered by Sachit Jain
Asked by Avdhut Joshi: Given the prior 20% export guidance for FY27, what is the outlook for exports now?
p. 12
“Exports are going to be a much lower proportion of our business.”
Sachit Jain, page 12 of the filed PDF · View the filing
Management outlined roughly INR1,200 crore of equity infusion and INR1,200 crore of debt, with a debt-equity ceiling below 0.75.
Answered by Sachit Jain
Asked by Priyankar Sarkar: What are the funding plans across debt, equity and internal accruals, and what debt-equity limits are targeted?
p. 15
“So roughly, we see about INR1,200 crores of equity infusion, out of which INR385 crores has already come in.”
Sachit Jain, page 15 of the filed PDF · View the filing
Management said it hopes for EBITDA on capital employed above 20% once the new plants reach full capacity utilization.
Answered by Sachit Jain
Asked by Anil Kumar Sharma: What ROCE target is management keeping in mind after the committed capex plans?
p. 16
“EBITDA on capital employed, we hope to continue to be above 20%.”
Sachit Jain, page 16 of the filed PDF · View the filing
The CFO said FY26 incentives were INR24 crore and are expected to fall to around INR13 crore in FY27 due to reduced electricity duty exemption after solar commissioning.
Answered by Sanjeev Singla
Asked by Saket Kapoor: What is the incentive/subsidy run rate expected for the current and next financial year?
p. 15
“So currently, we are getting 2 types of subsidies from the Punjab government. One is electricity duty exemption and the second is the GST refund.”
Sanjeev Singla, page 15 of the filed PDF · View the filing
Risks flagged
Raw material and gas price disruption from the Iran-US war scare
p. 3
“in the last quarter with the Iran-US war scare, raw material has shot up in prices as well as gas disruption was a concern.”
Sachit Jain, page 3 of the filed PDF · View the filing
Uncertainty over receiving environmental approval for capacity expansion
p. 3
“We will soon be applying for environmental approval, which is not sure that we'll get.”
Sachit Jain, page 3 of the filed PDF · View the filing
Ludhiana being in a critically polluted zone affecting approval odds
p. 8
“Why I'm still saying 50-50 is because Ludhiana still is in the critically polluted zone.”
Sachit Jain, page 8 of the filed PDF · View the filing
Possible global economic recession affecting demand
p. 8
“we are also facing a possible recession in the global economy.”
Sachit Jain, page 8 of the filed PDF · View the filing
Uncertainty in long-term new plant ramp-up given unpredictable future market conditions
p. 11
“Very difficult to say that today because you are talking of 6, 7, 8 years into the future.”
Sachit Jain, page 11 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.