New Delhi: Vardhaman Special Steels has reported a net profit decline of 8.06% for Q3 FY26 as rising input costs and increased competitiveness have weighed in on margins. Following the announcement, the company’s shares plunged nearly 5%, as investors grew concerned over the company’s ability to face economic challenges.
Revenues for the quarter remained muted at ₹430.54 crore as against ₹426.77 crore in the same period last year, mostly attributed to higher sales volumes. The company’s EBITDA was at ₹56.47 crore in the quarter, as against ₹42.05 crore last year, an increase of 34.28%. Over the quarter, the company recorded volumes of 55,141 tonnes, as against the 52,692 tonnes last year.
“Q3 FY26 witnessed a steady performance by the Company, with stable revenues, while EBITDA and PAT growing at 34.28% and 56.53% YoY respectively. The total revenue for the quarter was ₹430.54 crores, EBITDA and PAT at ₹56.47 crores, and ₹ 33.59 crores respectively.
In addition, the Company launched a closed-loop steel recycling initiative with Maruti Suzuki in October, representing a significant milestone in its green steel roadmap and commitment to the circular economy.
Further, the work on our new reheating furnace is on track for commissioning by March 2026, which will take our Rolling capacity to 270,000 tons. In line with our focus on sustainability and cost efficiency, we invested an additional INR 1.13 crore in Sone Solar Private Limited during the quarter, taking our total investment to INR 12.46 crore and maintaining a 26% stake, which we expect will help lower power costs and support margins over the long term.
Looking ahead, we will continue to focus on further strengthening our operational efficiencies, expanding capacity, and driving sustainable and profitable business with minimum carbon footprint. Thank you for your continued trust and support.” Mr Sachit Jain, Chairman & Managing Director, Vardhman Special Steels Ltd. said in a press release to the bourses.
Following the news, Vardhaman Special Steels was trading at ₹260 as on January 20.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
