Vardhman Special Steels Limited (VSSL) has announced its financial results for the second quarter, showcasing improved profitability despite a decline in revenue. The company's performance reflects its ability to enhance operational efficiency in the face of challenging market conditions.

Financial Highlights

Revenue and Profitability

Despite a 13.13% year-over-year decline in revenue to ₹4,300.00 crore, Vardhman Special Steels demonstrated strong profitability growth. The company's EBITDA increased by 15.65% to ₹453.00 crore, compared to ₹391.70 crore in the same quarter last year. This improvement led to a significant expansion in the EBITDA margin, which rose from 7.91% to 10.53%.

The company's bottom line also showed remarkable growth, with net profit surging by 34.11% to ₹346.00 crore, up from ₹258.00 crore in the corresponding quarter of the previous year.

Operational Efficiency

The substantial improvement in EBITDA margin, despite the revenue decline, suggests that Vardhman Special Steels has successfully implemented cost optimization measures and enhanced its operational efficiency. This ability to maintain profitability in the face of reduced revenue demonstrates the company's resilience and adaptability to market challenges.

Strategic Initiatives

The Board of Directors of Vardhman Special Steels has approved the introduction of an equity-based compensation scheme called "Vardhman Special Steels Limited Employee Stock Option Plan 2025." This plan, subject to shareholder approval, aims to align employee interests with those of the company and its shareholders, potentially boosting long-term performance and retention of key talent.

Outlook

While the revenue decline may raise concerns, the significant improvement in profitability metrics indicates that Vardhman Special Steels is effectively managing its operations. The company's ability to expand margins in a challenging environment positions it well for future growth as market conditions improve.

Investors and stakeholders will likely keep a close watch on how the company maintains this profitability trend and whether it can reverse the revenue decline in the coming quarters. The implementation of the employee stock option plan may also be seen as a positive step towards long-term value creation for the company.

As the steel sector navigates through various market dynamics, Vardhman Special Steels' performance this quarter demonstrates its capability to adapt and thrive, setting a solid foundation for future growth.

Vardhman Special Steels Limited held its 15th Annual General Meeting (AGM) on September 24, 2025, where shareholders approved all ten resolutions on the agenda. The meeting, which saw a strong participation rate of 80.3% of outstanding shares, also ushered in significant changes to the company's board structure.

Key AGM Approvals

Shareholders gave their nod to several important matters, including:

1. Adoption of audited standalone and consolidated financial statements for the year ended March 31, 2025
2. Declaration of dividend
3. Re-appointment of Mrs. Suchita Jain and Mrs. Soumya Jain as directors
4. Appointment of Mr. Koichiro Hayashida as a Non-Executive Non-Independent Director
5. Decision not to fill the vacancy caused by the retirement of Mr. Rajeev Gupta
6. Ratification of Cost Auditors' remuneration for FY2026
7. Appointment of M/s Harsh Goyal & Associates as Secretarial Auditors for five years
8. Approval for interim use of funds raised from Aichi Steel Corporation through preferential allotment

Board Restructuring

Following the AGM, the company announced significant changes to its board composition:

1. Mr. Sachit Jain, previously Vice-Chairman & Managing Director, has been designated as the Chairman & Managing Director effective September 25, 2025. This change comes after the cessation of Mr. Rajeev Gupta's directorship.

2. The board has appointed two new Independent Directors for a term of five years, subject to shareholder approval:

   • Mr. Dinkar Gupta: A former Indian Police Service (IPS) officer with over 30 years of experience in the security domain. He previously served as the Director General of the National Investigation Agency and as Director-General of Police in Punjab.

   • Mr. Nishant Arya: Vice Chairman & MD of the JBM Group and Chairman of Linde Wiemann GmbH, Germany. Mr. Arya brings extensive experience in electric vehicles, renewable energy, and sustainable mobility initiatives.

Shareholder Participation

The AGM saw robust engagement from shareholders:

The strong shareholder turnout and unanimous approval of all resolutions reflect confidence in Vardhman Special Steels' management and strategic direction. The addition of new board members with diverse expertise in security and sustainable technologies signals the company's focus on strengthening governance and exploring new growth avenues.