VRAJ Iron and Steel Limited announced its unaudited financial results for the third quarter ended December 31, 2025, alongside a significant infrastructure expansion decision. The steel manufacturing company reported mixed quarterly performance while securing board approval for a major renewable energy project.

Financial Performance Overview

The company's standalone financial results for Q3FY26 showed revenue from operations of ₹1,464.28 million compared to ₹1,198.76 million in the corresponding quarter of the previous year. Net profit after tax stood at ₹9.97 million for the quarter, significantly lower than ₹74.97 million reported in Q3FY25.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company demonstrated strong revenue growth with operations generating ₹4,177.16 million compared to ₹3,220.24 million in the corresponding period of the previous year. However, net profit after tax decreased to ₹155.05 million from ₹319.33 million in the same period last year.

Total expenses for the nine-month period reached ₹4,031.06 million, with cost of materials consumed being the largest component at ₹3,347.83 million. Depreciation and amortisation expenses increased significantly to ₹159.06 million from ₹42.52 million in the previous year.

Solar Power Plant Expansion

The Board of Directors approved the establishment of a 21 MW solar power plant for captive consumption at the Bilaspur division. This strategic initiative represents a significant step toward sustainable energy adoption and operational cost optimization.

Strategic Rationale and Impact

The solar power project aims to reduce dependence on conventional power sources while optimizing energy costs and supporting sustainable environmental development. The company expects the initiative to help reduce carbon emissions and improve energy efficiency. Additionally, the use of renewable energy will enable the company to qualify for future green steel standards and enhance its competitiveness in the market.

During the current quarter, the company capitalized a 15 MW solar plant, which led to higher depreciation charges under the Income Tax Act. This resulted in negative provision for taxation for the quarter due to increased depreciation benefits.

Consolidated Results

The consolidated financial results, which include the company's associate Vraj Metaliks Private Limited, showed revenue from operations of ₹1,464.28 million for Q3FY26. Consolidated net profit after tax was ₹10.97 million for the quarter, with the share of profit from associates contributing ₹1.00 million. For the nine-month period, consolidated net profit reached ₹164.38 million with associates contributing ₹9.33 million.

VRAJ Iron and Steel Limited has announced the reaffirmation of its credit ratings by CARE Ratings Limited, maintaining stable outlook across its banking facilities. The rating agency has reviewed and reaffirmed the company's creditworthiness based on recent operational and financial performance data.

Credit Rating Details

CARE Ratings Limited has reaffirmed the credit ratings for VRAJ Iron and Steel's banking facilities totaling ₹70.00 crore. The rating review was conducted based on the company's operational and financial performance for FY25 (Audited) and H1FY26 (Unaudited).

Banking Arrangements

All banking facilities are provided by HDFC Bank Ltd. The long-term facilities of ₹40.00 crore comprise cash credit arrangements, while the long-term/short-term facilities worth ₹30.00 crore consist of Letter of Credit and Bank Guarantee (LC/BG) facilities.

Regulatory Compliance

The company has informed both BSE Limited and NSE Limited about the credit rating reaffirmation as required under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was signed by Priya Namdeo, Company Secretary and Compliance Officer, and submitted on January 02, 2026.

Rating Methodology

CARE Ratings Limited conducted the review based on recent developments including the company's operational and financial performance. The rating agency has reserved the right to undertake surveillance and review of the rating from time to time, with at least one such review required annually. The ratings reflect opinions on the likelihood of timely payment of obligations and do not constitute recommendations for sanctioning, renewing, or recalling bank facilities.