Vardhman Special Steels Ltd(VSSL)

NSE: VSSLBSE: 534392

₹ 340.95-2.70%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 3,297 crNext results: 27 Oct 2026Website: www.vardhmansteel.comUpdated: 24 Oct 2026

About

Vardhman Special Steels, part of the Vardhman Group, makes premium special steels at its plant in Ludhiana and supplies automotive manufacturers across India. Its billet capacity is 3 lakh TPA and its rolling mill capacity is 2.7 lakh TPA, and it reported revenue of Rs 1,754.43 crore in FY26. Aichi Steel Corporation of Japan holds about 25% of the equity and provides technical assistance.^[1][2][3]

Business segments

VSSL reports a single segment, manufacturing of steel products. Revenue from operations was Rs 1,754.43 crore in FY26, compared with Rs 1,764.41 crore in FY25.^[1][4]

Products and quality

VSSL makes special alloy steel bars and rods, mainly for automotive OEMs and their Tier-1 suppliers. The steel goes into engine, transmission and chassis parts.^[3]
As of FY26, the Kocks Block holds bar diameters within +/- 0.2 mm. This lets VSSL replace steel that customers previously imported from Japan.^[1]
As of FY26, the company holds IATF 16949 certification.^[1]
Management plans to become a 'supermarket of special steels'. Target non-automotive uses include railway axles, die steels, windmill shafts, oil & gas, bearings, aerospace and defence.^[3]
Ingot casting for non-automotive grades is planned for Q3 FY27, and regular die steel production is targeted from FY28. Non-automotive steel is targeted at about 25-30% of revenue by FY35.^[5]

Operations and capacity

As of FY26, the Ludhiana plant has billet capacity of 3 lakh TPA and rolling mill capacity of 2.7 lakh TPA.^[1]
Rolling capacity reached 2,70,000 MTPA after the Kocks Block and a new reheating furnace (March 2026) were commissioned. The production team is targeting 3,30,000 tonnes of throughput.^[5][3]
A solar plant commissioned in Q4 FY26 is designed to generate 9 crore units a year. In Q1 FY27 it generated 2.3 crore units, about 43% of total power use.^[3][5]
A 210×210 billet section was introduced in FY26. It raises cast productivity and reduces rework on larger-diameter products.^[3]
The second NDT line and new bright bar capacity are due by September 2026. Job-work rolling is expected to come down from Q3 FY27.^[1][5]

Key operating numbers

Sales volume was 59,103 tonnes in Q1 FY27, up 6.5% YoY. FY26 volume was 2,25,620 tonnes, the highest ever.^[5]
Adjusted EBITDA per tonne was Rs 10,764 in Q1 FY27, compared with Rs 8,598 for FY26.^[5]
In Q1 FY27, direct exports were about 6-7% of sales and indirect exports through Aichi's Indian trading arm a further ~5%, for a total of ~9-10%.^[5]

Customers and distribution

As of FY26, automotive accounts for almost all output, and no single customer takes more than 15% of output. In FY25, the top customer was 11.27% of revenue and the top five were 33.34%.^[1][4]
In FY26, VSSL received global Toyota approvals. Maruti Suzuki localisation projects will replace grades previously imported from Japan.^[1]
In October 2025, VSSL started a closed-loop recycling programme with Maruti Suzuki. It buys CRC scrap from Maruti plants and supplies steel back to Maruti vendors.^[6]
A European OEM has been auditing VSSL and samples have been sent. Commercial supply is expected to start in H2 FY27.^[5]
In FY26, Thailand took over 70% of direct exports. Smaller volumes went to the Philippines, Indonesia, Malaysia and other ASEAN markets.^[1]
As of FY26, the company has branches and warehouses in Gurugram, Bangalore, Rudrapur, Chennai, Pune and Aurangabad.^[1]

Expansion and capex

A steel forging and machining unit in Ludhiana, set up with Aichi, has a budget of Rs 475 crore. Its cost is now expected to come in more than 10% below budget, with commissioning targeted for Q4 FY28.^[5][1]
A greenfield special steel plant of 5,00,000 t in Punjab is planned at about Rs 2,000 crore. It would be funded half by equity and half by debt, with a debt-to-equity ceiling of 0.75, and commissioning is targeted for March 2030.^[1][4][5]
Total committed capex is about Rs 2,600 crore, with FY28 the peak year at Rs 700-800 crore.^[3]
Melt shop expansion from 3,00,000 to 3,60,000 tonnes needs environmental clearance. The application was filed in June 2026, and a decision is expected before March 2027.^[3][1]
Solar capacity is planned to grow by about 50% within one to one-and-a-half years.^[5]
About Rs 1,200 crore of equity infusion is planned in total, including Rs 385 crore from Aichi in FY26. A QIP is possible in FY27.^[5][1]

Management targets

VSSL is targeting about 2,55,000 tonnes of sales in FY27 and more than 2,70,000 tonnes in FY28. It aims for 320,000-350,000 tonnes within 3 years.^[5][1]
In Q1 FY27, FY27 EBITDA-per-tonne guidance was raised to Rs 8,000-12,000 from Rs 8,000-11,000. The range is targeted to move to Rs 9,000-12,000 by FY29.^[5][1]
Government incentives are expected to taper as the GST refund scheme ends.^[1]

Recent developments

In July 2025, Aichi Steel raised its stake to 24.90%. It was allotted 1,47,70,100 shares at Rs 260.60 each, worth Rs 384.91 crore.^[4]
Rs 150 crore of the Aichi proceeds repaid all borrowings. As of 31 March 2026, no term loan was outstanding.^[6][1]
Aichi's Technical Assistance Agreement was renewed for October 2025 to September 2028.^[6]
Koichiro Hayashida resigned as a director effective 15 October 2026. He was appointed President of the Forging Division from 1 October 2026.^[7]
VSSL plans an advanced metals JV for aerospace, defence and nuclear grades with a partner other than Aichi.^[5]
For FY26, the board recommended a final dividend of Rs 3.50 per share.^[1]

Market Cap

₹3,297 Cr

High / Low

₹427 / 206

Stock P/E

187.8

Price / Book

4.6

Book Value

₹132

EPS

₹12.6

No. of Shares

9.67 Cr

ROCE

15.4%

ROE

11.8%

OPM

9.8%

Debt / Equity

0.07

Sales

₹1,754 Cr

Net Profit

₹122 Cr

Promoter holding

51.2%

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