Vardhman Special Steels Q2 Net Profit Rises 51.9% as Revenue Reaches Rs 600 Crore

Vardhman Special Steels Ltd. reported a 51.9% year-on-year rise in net profit to Rs 52.5 crore for the second quarter of fiscal 2027, with revenue up 38.8% at Rs 600 crore. NDTV Profit said the Ludhiana-based alloy steel maker posted the results in an exchange filing on Tuesday.

Vardhman Special Steels' Margin and Cost Moves

Net profit for the quarter ended September compared with Rs 34.6 crore a year earlier, while revenue rose from Rs 432.3 crore. Ebitda increased 52.7% to Rs 69.1 crore from Rs 45.3 crore, and the margin widened to 11.5% from 10.5%. Power and fuel costs fell to 9.3% of revenue from 12%, which supported the margin expansion.

Employee expenses rose 34.7% to Rs 39.3 crore, and finance costs nearly doubled to Rs 3.7 crore. Sequentially, revenue rose 23.5% and net profit grew 27.5%. Earnings per share stood at Rs 5.43, against Rs 3.61 in the year-ago quarter. In the first half of the fiscal, revenue grew 25.4% to Rs 1,086 crore and net profit rose 72% to Rs 93.7 crore.

Vardhman Special Steels' Capacity Spending

Capital work-in-progress rose to Rs 93.1 crore as of September 30 from Rs 26.5 crore at the end of March. Current borrowings climbed to Rs 162.9 crore from Rs 92.6 crore over the same period, and trade receivables increased to Rs 410.6 crore from Rs 277.8 crore. Operating cash flow for the half year fell to Rs 34 crore from Rs 70.9 crore a year ago.

Shareholders approved a dividend of Rs 3.50 per share at the annual general meeting on September 18, and the company paid out Rs 33.85 crore the same day. Vardhman Special Steels also allotted 15,500 shares under its employee stock option scheme during the half year.

Vardhman Special Steels' Aichi Steel Tie-Up

Vardhman Special Steels is a publicly listed Indian manufacturer of special and alloy steel serving automotive OEMs and Tier-1 suppliers, operating an integrated electric arc furnace facility in Ludhiana with 250,000 MTPA melting capacity, according to akta.pro company records. The same records list Aichi Steel Corporation, a Toyota Group company, holding a 24.90% stake in Vardhman Special Steels as of June 2025, alongside an integrated rolling mill capacity of 200,000 MTPA.

Earlier Vardhman Special Steels Announcements

Vardhman Special Steels laid the foundation stone for a Rs 1,116 crore greenfield forging facility in Ludhiana on July 27, 2026, marking an expansion into precision-forged automotive components, ScanX reported. Punjab Chief Minister Bhagwant Singh Mann laid the foundation stone for the forging and machining plant being established with Japan's Aichi Steel, Mint reported in July 2026.

Shareholders approved a final dividend of Rs 3.5 per equity share for FY26 at the annual general meeting on September 18, 2026, ScanX reported. Vardhman Special Steels appointed Iwao Shimamoto as non-executive non-independent director on October 27, 2026, following a share subscription agreement with Aichi Steel Corporation, ScanX reported.

What Comes Next for Vardhman Special Steels

The company's own announcement covers the quarterly filing, and the Rs 1,116 crore forging facility in Ludhiana remains under construction following its July 27, 2026 foundation stone.