Vardhman Special Steels Limited — PPTs, 25-07-2025: Investor Presentation

**Financial Highlights:**

For the quarter, revenue rose 4.93% year-on-year to Rs. 441.20 Cr, driven by a 10.49% volume increase. Despite higher volumes, EBITDA declined 18.13% to Rs. 39.33 Cr, and PAT fell 23.71% to Rs. 19.90 Cr, primarily due to reduced realizations. The company fully repaid its long and short-term borrowings in early July, signaling a reduction in future finance costs.

**Strategic Initiatives & Growth Drivers:**

The company is setting up a new Greenfield steel plant in Punjab with a planned 500,000 MTPA billet capacity, targeting commissioning by FY29-30. This Rs. 2,000 Cr project aligns with Green Steel trends. Expansion includes diversifying into wire rods, forging, and non-automotive sectors. Exports are aimed to grow from 5% to 20-25% by FY27. Reheating furnace commissioning is expected in H2 FY.

**Business Developments:**

Aichi Steel Corporation significantly increased its stake to 24.9% by investing Rs. 384.91 Cr, deepening their partnership. Discussions have begun with Aichi Steel for a forging facility. The Kocks Block has been successfully commissioned and awaits commercial production approval from OEMs.

**Market Position & Competitive Advantage:**

A leading Indian steel bar producer for automotive applications, the company benefits from its strategic alliance with Aichi Steel, providing advanced technology and access to global OEM customers for future-ready steel grades. It leverages in-house R&D for specialized product offerings.

**Investor Implications:**

The substantial capacity expansion and product diversification plans indicate strong long-term growth potential. The increased Aichi Steel stake signals robust confidence. Investors should monitor execution progress of the Greenfield plant and new product segments, while anticipating lower finance costs.