Vardhman Special Steels Ltd
Vardhman Special Steels FY26: PAT Rs. 122.02 Crore, +31% YoY; dividend Rs. 3.50/share
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 28 Apr 2026, 03:40 PM IST · BSE ID: fdc4f521-6443-46de-886c-eebc103206ce
View Original BSE Filing (PDF)
💡
In Simple Terms
Vardhman Steel reported strong FY26 profits up 31%, declared dividend of Rs. 3.50 per share, and commissioned new capacity equipment.
🤖 AI Summary
- FY26 PAT Rs. 122.02 Crore, +31.08% YoY; EPS Rs. 13.15 vs Rs. 11.40 prior year
- Revenue Rs. 1,754.43 Crore down 0.57% YoY; volumes 2,25,620 MT up 2.56% YoY
- EBITDA Rs. 208.82 Crore up 17.87%; EBITDA per ton Rs. 9,255
- Board approved dividend Rs. 3.50 per equity share, subject to AGM approval
- Commissioned solar plant and new reheating furnace; targeting 270,000 MT capacity
🔢 Key Numbers — exact figures from BSE filing, not rounded
FY26 PAT
Rs. 122.02 Crore
31.08%
FY26 Revenue from Operations
Rs. 1,754.43 Crore
(0.57)%
FY26 EBITDA (including other income)
Rs. 208.82 Crore
17.87%
FY26 Sales Volume
2,25,620 MT
2.56%
FY26 EPS
Rs. 13.15
15.35%
FY26 EBITDA per Ton
Rs. 9,255
Q4 FY26 PAT
Rs. 33.98 Crore
72.20%
Dividend per Equity Share (recommended)
Rs. 3.50
Target Capacity
270,000 MT
🏢 How This Affects the Company
Sales volumes grew 2.56% to 2,25,620 MT with capacity infrastructure additions (reheating furnace, solar plant) positioning company for higher volumes. Revenue decline of 0.57% reflects price erosion, not volume weakness.
PAT surged 31.08% to Rs. 122.02 Crore despite flat revenue, driven by 17.87% EBITDA expansion to Rs. 208.82 Crore. Cost control and non-operational income (deposits from Aichi Steel, PSPCL interest) contributed to margin improvement.
Q4 FY26 commissioned solar power plant and installed new reheating furnace, increasing manufacturing capacity to 270,000 MT. These capital additions enhance cost efficiency and throughput capability.
Revenue decline and reliance on price movements present near-term volume and pricing volatility risk. Non-operational income boost (Rs. 657 per ton) inflates current EBITDA; normalized EBITDA per ton Rs. 8,598 shows sustainable operational performance.
👥 What This Means For Shareholders
✅
Action Required
Equity shareholders should note dividend record date once announced post-AGM approval; dividend payable Rs. 3.50 per fully paid-up share.
👤
Who Is Affected
All equity shareholders holding shares on record date will receive dividend of Rs. 3.50 per share as recommended by Board, subject to AGM approval on 2026-04-28 filing date.
🔍
Management Signal
Management prioritized profitability over revenue growth, reinvested in capacity (270,000 MT target), achieved debt-free status, and signaled shareholder returns through dividend despite near-term price pressure.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
AGM approval of dividend Rs. 3.50/share — confirm ex-date and record date announcement
Q1 FY27 results — verify if 270,000 MT capacity ramp-up sustains volume momentum
Aichi Steel forging facility approval — track forward integration progress and revenue contribution
MEDIUM RISK
Revenue decline despite volume growth signals pricing pressure. Normalized EBITDA (excluding non-operational income) shows lower inherent profitability. Capacity expansion execution and market demand confirmation needed.
💡 Investor Takeaway
FY26 PAT Rs. 122.02 Crore up 31.08% despite revenue flat at Rs. 1,754.43 Crore. Volume growth 2.56% to 2,25,620 MT. EBITDA per ton Rs. 9,255. Dividend Rs. 3.50/share approved. New 270,000 MT capacity operational.
⚖️ Strengths & Concerns
✅ Positives
- Q4 PAT up 72.20% YoY to Rs. 33.98 Crore; full-year PAT growth 31.08% demonstrates strong earnings trajectory
- Volume growth 2.56% to 2,25,620 MT in FY26 with capacity expansion (270,000 MT target) supports pipeline for next fiscal
⚠️ Concerns
- Revenue declined 0.57% YoY to Rs. 1,754.43 Crore despite volume growth; price erosion offset volume gains
- EBITDA per ton inflation partly from non-operational income Rs. 657/ton; normalized operational EBITDA Rs. 8,598 lower
📅 Company Track Record
Vardhman Special Steels incorporated May 2010, demerged from Vardhman Textiles in 2011. FY25 PAT Rs. 93.09 Crore. FY26 marks 31.08% PAT growth and first major capacity expansion post debt-freedom. Aichi Steel partnership reinforced with increased stake and forging facility approval.
Based on publicly available historical data. For context only.