Garg Furnace Ltd

BSE: 530615

₹ 180.7-1.90%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 123 crWebsite: www.gargltd.comUpdated: 24 Oct 2026

About

Garg Furnace Ltd (GFL) makes steel. It is moving from commodity grades to value-added alloy steel, which it sells as a lower-priced substitute for EF steel. Its 51%-owned subsidiary Vaneera Industries started commercial production at its Phase 1 alloy-steel plant on 21 August 2026. GFL reported revenue of Rs 294.61 Cr for FY26.^[1][2]

Products and positioning

GFL changed the chemistry of its steel, which got it into Tier-2 OEM suppliers. Pricing is now linked to performance, which management says raises realisation per ton (Q1 FY27 call).^[1]
The company positions its alloy steel as a substitute for EF steel at a 5 - 10% lower price, which it describes as a mid-premium market (Q1 FY27 call).^[1]
Vaneera makes alloy steel on an LRF + VD + EMS route (Q1 FY27 call).^[1]

Operations and capacity

GFL has an installed capacity of 48,000 MT, running at 100% utilisation in FY 26-27 (Q1 FY27 call).^[1]
Vaneera Industries, 51% owned by GFL, has a Phase 1 installed capacity of 104,000 MT/PA, as of FY27 (Q1 FY27 call).^[1]

Customers and markets

The alloy steel is aimed at Tier-1/2 auto, engineering, rail and defence customers, and at replacing imports (Q1 FY27 call).^[1]

Expansion and capex

Vaneera Phase 2 is planned to take its capacity to 204,000 MT/PA by December 2027, including a rolling mill for forward integration (Q1 FY27 call).^[1]
GFL plans to raise its own installed capacity to 100,000 MT; no target date was given (Q1 FY27 call).^[1]
Combined GFL and Vaneera output of 276,000 tonnes is planned by FY2029-30, with installed capacity rising to 325,200 MT (Q1 FY27 call).^[1]
The company plans captive solar power of 13 MW at Vaneera and 5 MW at GFL to cut power costs (Q1 FY27 call).^[1]
The company plans to move into certified defence and aerospace-grade alloy steel and to start a stainless steel vertical. It also aims to grow by acquiring other companies (Q1 FY27 call).^[1]

Management targets

Management targets 2.5x production growth this year, 5.5x growth within 2 years and 6.5x within 4 years (Q1 FY27 call).^[1]
Management targets a 35% improvement in realisation and profitability from the same production base (Q1 FY27 call).^[1]

Recent developments

Commercial production at Vaneera Industries Phase 1 (104,000 MT/PA) started on 21 August 2026 (Q1 FY27 call).^[1]

Market Cap

₹123 Cr

High / Low

₹256 / 109

Stock P/E

8.6

Price / Book

0.9

Book Value

₹198

EPS

₹20.9

No. of Shares

0.5 Cr

ROCE

8.0%

ROE

10.5%

OPM

4.0%

Debt / Equity

0.18

Sales

₹295 Cr

Net Profit

₹11 Cr

Promoter holding

56.9%

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Signal history

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