Vardhman Special Steels Limited (VSSL) has unveiled ambitious plans for growth while reporting its first quarter results for the fiscal year 2026. The company has announced a significant greenfield expansion project and shared its financial performance for Q1 FY26.

₹2,000 Crore Greenfield Expansion Project

Vardhman Special Steels has announced a ₹2,000 crore greenfield expansion project, aiming to establish a new steel plant in Punjab. The expansion targets a capacity of 5 lakh tonnes per annum of billet production by FY30. This strategic move is designed to position VSSL as a leader in EV-grade steel and the global forging market.

Key points of the expansion plan include:

• Total capital expenditure estimated at approximately ₹2,000 crore
• Funding through a mix of internal accruals, equity, and debt
• Planned commissioning by FY 2029-30
• Focus on Green Steel and Circular Economy trends
• Diversification into new product segments such as wire rods, forging, and non-automotive sectors

Strategic Partnership with Aichi Steel Corporation

In a significant development, Aichi Steel Corporation (ASC) has increased its stake in VSSL from 11.33% to 24.9%. This move strengthens the partnership between the two companies and demonstrates ASC's confidence in VSSL's future direction. The investment of ₹384.91 crore by ASC was completed through the allotment of 14,770,100 fully paid-up equity shares at ₹260.60 per share on July 4, 2025.

Q1 FY26 Financial Results

Vardhman Special Steels has reported its unaudited financial results for the quarter ended June 30, 2025:

Key highlights:

• Sales volume increased by 10.49% year-on-year
• Revenue growth of 4.56% despite pressure on realizations
• EBITDA per ton for the quarter stood at ₹7,077

Operational Updates

• The Kocks Block has been successfully commissioned, with trial runs completed
• Capex for the reheating furnace is proceeding as planned, with commissioning expected in the second half of the financial year
• Discussions have begun with Aichi Steel Corporation on setting up a forging facility

Commenting on the results, Mr. Sachit Jain, Vice Chairman & Managing Director of Vardhman Special Steels Ltd., said, "In Q1 FY26, our revenue increased by 4.93% on a year-on-year basis on account of higher volumes despite pressure on realizations. The volumes increased by 10.49%. We are hopeful to commission the reheating furnace in the second half of the financial year."

The company's focus on expansion, strategic partnerships, and diversification into new product segments indicates its commitment to long-term growth and market leadership in the special steels sector.

Vardhman Special Steels Limited , a prominent player in the steel industry, has released its financial results for the first quarter, showcasing a mixed performance with revenue growth accompanied by a decline in profitability.

Revenue Growth

The company reported a 4.56% year-on-year increase in revenue from operations, reaching Rs 43,369.85 lakhs, compared to Rs 41,477.99 lakhs in the same quarter of the previous year. This growth indicates a positive trend in the company's sales and market presence.

Profit Decline

Despite the revenue growth, Vardhman Special Steels experienced a decrease in net profit. The company's net profit after tax stood at Rs 1,989.51 lakhs, down 23.71% from Rs 2,607.82 lakhs in the corresponding quarter of the previous year. This decline in profitability suggests challenges in managing costs or maintaining margins during the quarter.

Financial Highlights

Other Key Points

• The company's total income, including other income, reached Rs 44,119.59 lakhs, up from Rs 42,045.22 lakhs in the corresponding quarter of the previous year.
• Earnings per share (EPS) decreased to Rs 2.43 from Rs 3.20 year-over-year, reflecting the impact of reduced profitability on shareholder returns.
• Vardhman Special Steels received government incentives of Rs 671.30 lakhs under the Industrial and Business Development Policy 2017 of the State Government, which were recorded under 'Other income'.

Strategic Developments

In a significant move to strengthen its position, Vardhman Special Steels completed a preferential allotment of shares to Aichi Steel Corporation (ASC) on July 4. This transaction resulted in ASC increasing its shareholding from 11.33% to 24.90% of the company's issued and paid-up equity share capital, with an investment of Rs 384.91 crore.

Industry Outlook

The steel industry continues to face challenges, including fluctuating raw material costs and market demand. Vardhman Special Steels' ability to grow its revenue in this environment demonstrates its resilience, though the pressure on profitability highlights the ongoing challenges in the sector.

Investors and stakeholders will be watching closely to see how the company navigates these challenges and leverages its strategic partnerships to drive growth and improve profitability in the coming quarters.