Vardhman Special Steels Limited has reported no deviation in the utilization of funds raised through its recent preferential issue, according to the monitoring agency report for the quarter ended September 30, 2025. The report, issued by CRISIL Ratings Limited, confirms that the company has adhered to the disclosed objectives of the issue.

Fund Raising and Allocation

On July 4, 2025, Vardhman Special Steels raised Rs 3,849.09 crore through a preferential issue. The funds were allocated for three specific purposes:

Fund Utilization

During the reported quarter, the company utilized Rs 500 crore for the repayment of working capital borrowing. The remaining unutilized proceeds, amounting to Rs 2,349.09 crore, have been deployed in fixed deposits with ICICI Bank.

Deployment of Unutilized Funds

The unutilized funds have been invested as follows:

The total market value of these investments as of September 30, 2025, stands at Rs 2,381.65 crore.

Monitoring Agency's Observations

CRISIL Ratings Limited, serving as the monitoring agency, has reported that:

1. The utilization of funds is in line with the disclosures made in the Notice to Shareholders.
2. There have been no material deviations requiring shareholder approval.
3. The means of finance for the disclosed objects of the issue remain unchanged.
4. No major deviations have been observed compared to earlier monitoring agency reports.

Company's Compliance

Vardhman Special Steels has submitted this report in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The monitoring agency's report provides an objective view of the utilization of the issue proceeds, ensuring transparency and adherence to regulatory requirements.

Vardhman Special Steels Limited (VSSL) has recently outlined its financial and production targets for the coming years, showcasing a robust growth strategy aimed at enhancing its market position in the special steels sector.

Financial Projections

The company has set forth a series of ambitious EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) targets linked to its production capacity:

At full production capacity of 270,000 tons, Vardhman Special Steels expects to achieve a minimum EBITDA of INR 216.00 crores, with the potential to reach INR 300.00 crores.

Production Scale-Up Plans

VSSL has outlined a clear roadmap for scaling up its production:

• FY27: Estimated production volume of around 245,000 tons
• FY28: Aim to achieve full capacity of 270,000 tons

The company's strategy indicates a gradual ramp-up in production, aligning with its projected EBITDA growth.

Future Outlook

Vardhman Special Steels appears optimistic about its future performance, as evidenced by the projected increase in EBITDA per ton:

• FY26: INR 7,000 - 10,000 per ton
• FY27: INR 8,000 - 11,000 per ton
• FY28 and beyond: Potential to reach INR 8,000 - 12,000 or even INR 9,000 - 12,000 per ton

These projections suggest that the company expects to improve its operational efficiency and profitability as it scales up production.

Investor Communication

In line with its commitment to transparency, VSSL held an earnings conference call on November 3, 2025, to discuss the company's business and financial performance for Q2 & H1 FY26. The audio recording of this call has been made available on the company's website, allowing investors and analysts to gain deeper insights into the company's strategies and performance.

As Vardhman Special Steels moves forward with its ambitious plans, investors and market watchers will likely keep a close eye on the company's progress towards achieving these targets. The successful realization of these goals could potentially strengthen VSSL's position in the special steels market and enhance shareholder value in the coming years.