Vardhman Special Steels Ltd
Vardhman Special Steels FY26 Results: PAT Rs. 12,202.39 lakhs, dividend Rs. 3.5/share
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 28 Apr 2026, 12:39 PM IST · BSE ID: 419aa8d7-53f5-428f-af0e-f721e2ab5835
View Original BSE Filing (PDF)
💡
In Simple Terms
The steel company made Rs. 12,202 crore profit last year, earning Rs. 13.15 per share, and is paying shareholders Rs. 3.5 dividend per share.
🤖 AI Summary
- FY26 PAT Rs. 12,202.39 lakhs, up 31.1% YoY from Rs. 9,308.81 lakhs in FY25
- Revenue from operations Rs. 1,75,443.31 lakhs, down marginally from Rs. 1,76,440.83 lakhs
- Board recommended dividend Rs. 3.5 per share pending shareholder approval at AGM
- Basic EPS Rs. 13.15 versus Rs. 11.40 in FY25; 123,750 equity shares issued under ESOP
- Unmodified audit opinion; results approved April 28, 2026
🔢 Key Numbers — exact figures from BSE filing, not rounded
PAT FY26
Rs. 12,202.39 lakhs
31.1%
Revenue from operations FY26
Rs. 1,75,443.31 lakhs
-0.6%
Basic EPS FY26
Rs. 13.15
15.4%
Dividend per share (recommended)
Rs. 3.5
PBT FY26
Rs. 16,404.94 lakhs
31.2%
Other equity as at 31 March 2026
Rs. 1,18,063.41 lakhs
64.9%
Government incentives FY26
Rs. 2,556.90 lakhs
2.2%
Capex (PPE + intangible assets) FY26
Rs. 24,262.02 lakhs
Total equity as at 31 March 2026
Rs. 1,27,731.98 lakhs
60.1%
Current borrowings as at 31 March 2026
Rs. 9,264.95 lakhs
-20.4%
🏢 How This Affects the Company
Revenue marginally contracted 0.6% YoY to Rs. 1,75,443.31 lakhs, indicating flat-to-declining top-line growth despite profit expansion driven by improved cost management and operational efficiency.
PAT grew 31.1% YoY to Rs. 12,202.39 lakhs; other equity jumped from Rs. 71,618.49 lakhs to Rs. 1,18,063.41 lakhs, reflecting significant capital infusion through equity issuance (Rs. 38,501.45 lakhs proceeds from share capital). Debt position improved with current borrowings falling from Rs. 11,643.29 lakhs to Rs. 9,264.95 lakhs.
Property, plant and equipment increased 89.5% to Rs. 58,476.49 lakhs, indicating substantial capex deployment. Capital work-in-progress fell from Rs. 11,703.36 lakhs to Rs. 2,646.86 lakhs, suggesting project completion and transition to operational assets.
Company received government incentives of Rs. 2,556.90 lakhs in FY26 (Rs. 2,501.02 lakhs in FY25) under Industrial Policy 2017, creating potential revenue volatility if future disbursements are irregular. Deferred tax liabilities increased to Rs. 2,269.43 lakhs from Rs. 1,842.97 lakhs, indicating timing differences on accelerated depreciation.
👥 What This Means For Shareholders
✅
Action Required
All equity shareholders must attend AGM to approve dividend payout of Rs. 3.5 per share; record date and payment timing will follow AGM conclusion.
👤
Who Is Affected
Shareholders holding equity on record date (post-AGM) will receive dividend of Rs. 3.5 per share; total payout of Rs. 3,383.99 lakhs based on 9,668.57 lakhs paid-up capital (96.6857 crore shares at face value Rs. 10).
🔍
Management Signal
Recommended dividend despite revenue decline signals management conviction in underlying profitability from margin improvement and confidence in balance sheet strength post-equity infusion.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
AGM date announcement — confirm dividend approval and payment timeline within five days of AGM conclusion
Q1 FY27 results (October 2026) — validate if revenue recovery begins and government incentive flow continues
Capex project completion updates — track PPE utilization and capacity metrics given Rs. 24,262 lakhs investment
MEDIUM RISK
Revenue decline 0.6% YoY despite capex signals demand/utilization risk. Government incentives of 14.6% of PBT create policy discontinuation exposure. Deferred tax liability rising.
💡 Investor Takeaway
FY26 PAT reached Rs. 12,202.39 lakhs (+31.1% YoY) despite revenue decline to Rs. 1,75,443.31 lakhs, driven by cost controls and government subsidies totalling Rs. 2,556.90 lakhs. Dividend Rs. 3.5/share approved. Equity capital Rs. 38,501.45 lakhs injected; debt reduced. Watch revenue recovery sustainability given flat sales against capex of Rs. 24,262.02 lakhs.
⚖️ Strengths & Concerns
✅ Positives
- PAT growth 31.1% YoY to Rs. 12,202.39 lakhs on nearly flat revenue indicates margin expansion and operational leverage.
- Equity base strengthened by Rs. 38,501.45 lakhs equity infusion; debt reduced Rs. 2,378.34 lakhs, improving capital structure and financial flexibility.
⚠️ Concerns
- Revenue declined 0.6% YoY to Rs. 1,75,443.31 lakhs despite capex of Rs. 24,262.02 lakhs, raising questions about capacity utilization and market demand.
- Government incentives of Rs. 2,556.90 lakhs (14.6% of profit before tax) create earnings sustainability risk if policy support lapses post-recognition conditions.
📅 Company Track Record
Company incorporated 2010 (CIN: L27100PB2010PLC033930). FY25 PAT was Rs. 9,308.81 lakhs; FY26 delivered Rs. 12,202.39 lakhs. Government incentives have been material: Rs. 2,501.02 lakhs (FY25) and Rs. 2,556.90 lakhs (FY26) under Punjab Industrial Policy 2017 for Steel Melt Shop expansion completed FY20. No prior filed context available; this is inaugural audited results filing reviewed.
Based on publicly available historical data. For context only.