Vardhman Special Steels Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, with BSE and NSE. The report, prepared by CRISIL Ratings Limited as the monitoring agency, provides details on the utilization of proceeds from the company's preferential issue conducted earlier in the fiscal year.

Issue and Utilization Overview

The preferential issue, completed on July 4, 2025, raised Rs 3,849.09 crore through equity shares. The proceeds were earmarked for three specific purposes: capital expenditure for a greenfield steel manufacturing plant at Ludhiana (Rs 1,349.09 crore), capital expenditure at the existing plant (Rs 1,000.00 crore), and repayment of working capital borrowings (Rs 1,500.00 crore).

Quarterly Progress and Deployment

During the quarter ended December 31, 2025, the company utilized Rs 191.48 crore specifically for capital expenditure requirements at its existing plant. The monitoring agency noted that Rs 138.78 crore was transferred from the monitoring account to current accounts during the quarter for operational ease, and these transferred proceeds were fully utilized by the end of the reporting period.

The working capital borrowing repayment of Rs 1,500.00 crore was completed in earlier quarters, while no utilization occurred for the greenfield plant project during this quarter.

Investment of Unutilized Funds

The company has deployed the unutilized proceeds of Rs 2,157.61 crore across various investment instruments to generate returns while maintaining liquidity. The deployment strategy includes fixed deposits and mutual fund investments with varying maturity profiles and return rates.

The total earnings from these investments as of December 31, 2025, amounted to Rs 38.72 crore, bringing the total value of invested funds to Rs 2,196.33 crore.

Compliance and Monitoring

CRISIL Ratings Limited, serving as the monitoring agency under SEBI regulations, confirmed that all utilization during the quarter was in accordance with the disclosures made in the Notice to Shareholders. The report indicates no deviations from the stated objects, no changes in the means of finance, and no major deviations from earlier monitoring reports.

The monitoring agency relied on management undertakings, peer-reviewed independent chartered accountant certificates from M/s S.S. Periwal & Co., and bank statements to prepare the comprehensive utilization report. No delays in implementation were reported for any of the stated objects during the quarter.

Vardhman Special Steels has reported a robust financial performance for the third quarter, with net profit registering a significant year-on-year growth. The company's bottom line showed strong momentum during the reporting period.

Financial Performance Highlights

The company's net profit for the third quarter stood at ₹336.00 million, marking a substantial increase from the corresponding quarter of the previous year. This represents a notable improvement in the company's profitability metrics.

Growth Analysis

The year-on-year comparison reveals a strong upward trajectory in the company's earnings. The net profit growth of 57.01% indicates improved operational performance and enhanced profitability during the third quarter. This substantial increase reflects the company's ability to generate higher returns during the reporting period.

The financial results demonstrate Vardhman Special Steels' strengthened market position and operational efficiency improvements. The significant profit growth suggests effective cost management and revenue optimization strategies implemented by the company during the quarter.