Vardhman Special Steels Limited · NSE:VSSL

Vardhman Special Steels — Q1 FY26 Earnings Presentation

35 slides from Vardhman Special Steels's earnings presentation, Jul 25, 2025

  1. Slide 1: Regulation 30 compliance letter to stock exchanges

    G) | Vardhman VARDHMAN SPECIAL STEELS LIMITED Vardhman Delivering Excellence. Since 1965. CHANDIGARH ROAD LUDHIANA- 141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:JUL:2025-26 Dated: 25.07.2025, BSE Limited, The National Stock Exchange of India L

  2. Slide 2: Result Update Presentation Q1 FY26

    Result Update Presentation Q1 FY26

  3. Slide 3: This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for

    This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any cont

  4. Slide 4: Table of Contents

    . TABLE OF CONTENTS _é FINANGIAL HIGHLIGHTS COMPANY OVERVIEW © WISINESS OVERVIEW SA WAH ey CO = ad

  5. Slide 5: Financial Highlights

  6. Slide 6: New greenfield steel plant and Aichi Steel stake increase

    The company is setting up a new Greenfield steel plant in the state of Punjab for the manufacturing of special and alloy steel.  Aichi Steel, a Japanese company, increases its stake in VSSL from 11.33% to 24.90% marking a decisive shift from being a passive strategic investor to a deeply integrated

  7. Slide 7: Q1 FY26 management commentary

    “ In Q1 FY26, our revenue increased by 4.93% on a year-on-year basis on account of higher volumes despite pressure on realizations. The volumes increased by 10.49%. Total revenue stood at Rs. 441.20 crore, with EBITDA at Rs. 39.33 crore and PAT at Rs. 19.90 crore. EBITDA per ton for the quarter stoo

  8. Slide 8: Q1 FY26 income statement

    INR Crore Q1 FY26 Q1 FY25 Y-o-Y % Q4 FY25 Revenue From Operations 433.70 414.78 4.56% 428.04 Other Income 7.50 5.67 7.18 Total Income 441.20 420.45 435.22 Cost of Materials Consumed 228.88 302.40 220.40  Volumes for Q1 FY26 Purchases of Stocks 0.00 0.00 0.00 stood at 55,574 tonnes – Changes In Inve

  9. Slide 9: Balance sheet

    INR Crore As on 31st Mar’25 As on 31st Mar’24 INR Crore As on 31st Mar’25 As on 31st Mar’24 Equity 797.91 719.35 Non-Current Assets 474.76 365.39 Equity Share Capital 81.73 81.46* Property Plant & Equipment 308.29 324.10 Other Equity 716.18 637.89 Capital work in progress 117.03 0.99 Non-current Lia

  10. Slide 10: Company Overview

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  11. Slide 11: Company at a glance

    Amongst India’s Leading Steel Bar Experienced Management Team State-of- art manufacturing facilities Quality Standards, Assurance Producers for Automotive Applications  Significant experience in Steel  Cutting-edge manufacturing & Certifications  Incorporated in May 2010 Industry technology  ISO

  12. Slide 12: Company history and journey

    What We were… 1973- 2011 2012 - 2015 2016 - 2018 2019 – Till Date  1973 – Started as Oswal Steels -  2012 - Listed on BSE & NSE  Dec 2016 – Upgraded  Feb 2019 – Fortified Board of Directors -one 50,000 TPA capacity of special transformer & allied Independent Woman Director and one & alloy steels

  13. Slide 13: Board of Directors

    … Mr. Rajeev Gupta Mr. Sachit Jain Chairman & Non-Independent Director Vice Chairman & MD  B. Tech from BHU/IIT, Varanasi and MBA (IIM, Ahmedabad)  B. Tech (Electrical) - IIT, New Delhi, MBA (Gold medallist) - IIM,  Rich experience of more than 41 years - One of Country’s Ahmedabad and Owner/Pres

  14. Slide 14: Board of Directors (continued)

    … Mrs. Vidya Shah Mr. Rakesh Jain Independent Director Independent Director  MBA from Indian Institute of Management, Ahmedabad  Ph.D. in Polymers from University of Akron  11 years of career in investment banking - ICICI, Peregrine and NM  Worked in Advanced Technology Group at GE Electro-mater

  15. Slide 15: Business Overview

  16. Slide 16: Hot Rolled Bars and Bright Bars

    Hot Rolled Bars Bright Bars  Diameter Size : Increased from 25-70  Size : 14.66 to 78 mm (Peeled), 18 to MM in 2012 to 16-120 MM 55.25 mm (Drawn)

  17. Slide 17: Automotive component applications

    • Axle Gears • Transmission Gear • Stabilizer Bar • Drive-Shaft • Knuckle Spindle • Tie-Rod • Piston • Bearings • Connecting Rod • Companion-flange • Camshaft • Axle Shaft • Center Velocity Joint • Piston-Pin • Crankshaft • Steering-Yoke • Differential Gears • Steering Shaft

  18. Slide 18: Steel Melting Shop, Rolling Mill and Bright Bars capacity

    Steel Melting Shop Rolling Mill Bright Bars Annual Capacity : 3,00,000 TPA Annual Capacity : 2,00,000 TPA Annual Capacity : 48,000 TPA  35 MT Ultra High Power (UHP) Eccentric  Rolling Mill installed in 2013-14  Bar Peeling & Centreless Grinding Bottom Tapping (EBT Type)  Mill with complete autom

  19. Slide 19: Process flow

    , PROGESS FLOW Sponge, ORt, PIG IRON, Shredded Scrap ; a ) rr Final Inspection and Dispatch all Domestic Shipment Vaccum Degassing Unit —_Laddie Refining Unit Continous Casting Facility As Rolled Bar “Hot Rolled" Billet A“ Reheat Furnace Rolling Mill

  20. Slide 20: Electric Arc Furnace, Ladle Refining, Continuous Casting

    Electric Arc Furnace Two Ladle Refining Furnace Continuous Casting Machine Vacuum Degassing

  21. Slide 21: Rolling Mill and Bright Bar Shop

    Rolling Mill Bright Bar Shop Reheating Furnace Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop

  22. Slide 22: Finishing and testing of bars

    MFLT Straightening Chamfering Acceptance Criteria: Straightness : Bar ends free from 0.2x10mm 2mm / meter Burr Shot Blasting UST Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm

  23. Slide 23: Quality testing facilities

     Spectrometer: ARL 4460:1454 for Chemical Analysis. Can check 32 different elements  CS - 230 : Analyzer for Carbon & Sulfur content in steel  LECO gas analyzer: TC 600 H2, N2, O2 Analyzer  Mobile Spectro and XRF for Mix up Testing of Bars  Mechanical and Metallurgical Testing Lab:  Rockwell H

  24. Slide 24: Warehouse network

    Bilaspur  One Owned Warehouse  Bilaspur Haryana Rudrapur  Five Leased Warehouses in India  Bangalore Aurangabad  Chennai  Rudrapur Pune  Pune  Aurangabad Bangalore Chennai

  25. Slide 25: Key strengths

    State of Art Manufacturing Facilities Diversified Product offerings Rich Management Experience and advanced R&D Capabilities  Manufactures diverse range of  Dynamic & rich experience in special  Well equipped with latest upgraded products with wide applications across steel sector Technology Mach

  26. Slide 26: End-use segments served

    Cars Two Wheelers HCL/LCVs Auto Components Tractors Off Highway Vehicles

  27. Slide 27: Export markets

    To be provided Russia Germany Italy Japan Turkey Vietnam Taiwan Thailand 3% of FY25 sales from exports

  28. Slide 28: Way Ahead

    or AHEAD

  29. Slide 29: Employee development initiatives

    Centre for Creative Leadership ‘Manav Vikas Kendra’ ‘EKLAVYA - B.Sc. to B. Tech.’  CCL - US based Organisation – offers  Training programs – functional,  New Initiative undertaken leadership programs across 160 countries, attitudinal, skill development,  Formalized training programs that FT top1

  30. Slide 30: Aichi Steel alliance and EV strategy

    Gasoline  Technology and technical know how shared with VSSL to make steel for Toyota companies and other OEM’s Phase - 1  To raise quality of steel of VSSL to be supplied to future ready cars like Hybrid, Hydrogen fuel and Electric Hybrid  Increase VSSL production capacity with aim to achieve hi

  31. Slide 31: Possibilities and production volume roadmap

    Possibilities  Future Ready products - Patent steel grades developed for special application in EV’s, hybrid and conventional cars  Own In House R&D – Toyota Car Company takes input from Aichi on special steel to be developed car parts. It means we can target more approvals for VSSL in Maruti Suzu

  32. Slide 32: VSSL to emerge as #1 Special Steels manufacturer in India

    Phase 3 Production 300,000MT / year Phase 2 Export 60,000 MT / year • Initiate CAPEX to increase production capacity to • Vardhman may look forward to 250,000 MT in first phase Forging business in India • FY 23: Year of manufacturing of Trial orders for Aichi • Anticipate to receive orders from Aich

  33. Slide 33: Environment

    Environment • Committed towards cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit • Making steel through Electric Arc Furnace route which is significantly more environment friendly than Blast Furnace route. Most of our competitors a

  34. Slide 34: Social initiatives and employee wellbeing

     Have In-house oxygen generation plants for our captive consumption. During Covid time, we had served society by supplying oxygen cylinders. During 2nd wave of Covid, we have been able to serve for 50% requirement of oxygen of Ludhiana city  Employee well being:  We hadn’t laid off anyone during

  35. Slide 35: For further information, please contact

    For further information, please contact 534392 VSSL VSSL IN VARM.BO Company Investor Relations Advisors Vardhman Special Steels Limited Adfactors PR Pvt. Ltd. Mr. Sanjeev Singla Mr. Parth Chauhan Ms. Samruddhi Bane +91 9082323003 +91 9619624264 sanjeevsingla@vardhman.com parth.chauhan@adfactorspr. s

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