Vardhman Special

NSE: VSSL · Iron & Steel Products

52W Range₹206 ₹326

Snapshot

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Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Vardhman Special Steels Limited is a manufacturer of billets, steel bars, and bright bars specialising in alloy and special steel grades. The company primarily serves the automotive, engineering, tractor, and bearing industries.

Business Model

The company generates revenue through the production and sale of high-quality special steel products tailored for industrial and automotive applications. It operates as a key supplier to original equipment manufacturers requiring precise metallurgical specifications.

Growth Outlook

Growth is driven by the expansion of the domestic automotive sector and increasing demand for specialised steel components in engineering applications. The company continues to focus on maintaining its position as a preferred supplier for high-end industrial segments.

Key Risks

  • Cyclicality of Automotive Industry. The company's performance is highly sensitive to production volumes and demand fluctuations within the automotive sector.
  • Raw Material Price Volatility. Fluctuations in the prices of iron ore, scrap, and other alloying elements can significantly impact operating margins.
  • Regulatory and Environmental Compliance. Stricter environmental regulations regarding steel manufacturing processes may necessitate additional capital expenditure.
  • Competitive Intensity. The special steel market faces intense competition from both domestic players and international imports, which may exert pressure on pricing power.

Price

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Key Metrics

REVENUE

₹1,754 Cr

TTM · standalone

-0.6%YoY

NET PROFIT

₹122 Cr

TTM · standalone

+31.1%YoY

EPS

₹13.04

TTM · standalone

+14.2%YoY

RETURN ON EQUITY

13.3%

TTM · standalone

+0.7 ppYoY

RETURN ON CAPITAL EMPLOYED

18.7%

TTM · standalone

+0.1 ppYoY

P/E

22.8x

Q4 FY26 · standalone

22.8 vs 19.5x5Y avg

EV/EBITDA

14.2x

Q4 FY26 · standalone

14.2 vs 16.4x5Y avg

EBITDA MARGIN

11.9%

TTM · standalone

+1.9 ppYoY

NET PROFIT MARGIN

7.4%

Q4 FY26 · standalone

+2.8 ppYoY

DEBT TO EQUITY

0.1x

Q4 FY26 · standalone

-0.08xYoY

Peers · Iron & Steel Products

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Vardhman SpecialVSSL
2,24922.8114.18-0.6%11.9%13.3%18.7%+12.1%
Man IndustriesMANINDS
2,53123.029.411.7%13.1%9.9%19.9%+26.7%
Shivalik BimetalSBCL
2,20443.3929.4712.3%25.0%22.6%28.7%+25.2%
Venus PipesVENUSPIPES
2,00036.4819.9621.7%17.3%18.0%28.5%+11.4%
Rhetan TMT LtdRHETAN
1,973162.53165.05-34.2%62.0%37.9%42.9%+81.1%
JTL Industries LimitedJTLIND
1,91729.3119.2511.5%7.8%8.0%11.0%-6.3%

As of Q4 FY26

Financials