Vraj Iron and Steel Limited has announced that CARE Ratings Limited has assigned and reaffirmed credit ratings on the company's bank facilities totaling ₹128.00 crore. The rating actions were communicated to stock exchanges on February 19, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings has provided comprehensive rating coverage across the company's banking facilities with HDFC Bank Limited. The rating actions include both new assignments and reaffirmations of existing ratings.

Facility Structure and Terms

The rated facilities are structured across different categories to meet the company's operational and capital requirements. The term loan facility of ₹38.00 crore from HDFC Bank Limited is repayable in 96 monthly installments ending in January 2034. The cash credit facility provides ₹40.00 crore in working capital support, while the LC/BG facility offers ₹50.00 crore for trade finance requirements.

Rating Enhancement

A notable development in the rating action is the enhancement of the LC/BG facility limit from ₹30.00 crore to ₹50.00 crore, representing a ₹20.00 crore increase in the company's trade finance capacity. This enhancement was accompanied by a reaffirmation of the CARE A- stable/CARE A2+ rating.

Banking Relationship

All rated facilities are provided by HDFC Bank Limited, indicating a consolidated banking relationship. The facilities span across term loans for capital expenditure, cash credit for working capital needs, and LC/BG facilities for trade finance operations.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, by informing both BSE Limited and NSE Limited about the rating actions. The communication was signed by Company Secretary and Compliance Officer Priya Namdeo.

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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 and completing mandatory newspaper publication requirements.

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.

Regulatory Compliance and Publication

The company fulfilled its regulatory obligations under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by publishing extracts of its Q3FY26 unaudited financial results in newspapers. Company Secretary and Compliance Officer Priya Namdeo confirmed that the financial results were published in Business Standard (English) and Swadesh (Hindi) newspapers on February 13, 2026.

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.