- Vardhman Special Steels' Q2 net profit rose 51.9% YoY to Rs 52.5 crore
- Revenue increased 38.8% YoY to Rs 600 crore in Q2 fiscal 2027
- Power costs fell to 9.3% of revenue, aiding margin expansion to 11.5%
Vardhman Special Steels Ltd. reported a 51.9% year-on-year rise in net profit for the second quarter of fiscal 2027. Higher sales and lower power costs relative to revenue drove the gain.
The Ludhiana-based alloy steel maker posted a bottomline of Rs 52.5 crore for the quarter ended September, compared with Rs 34.6 crore a year earlier, according to an exchange filing on Tuesday.
Vardhman Special Steels Q2 FY27 Highlights (YoY)
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- Revenue up 38.8% at Rs 600 crore vs Rs 432.3 crore.
- Ebitda up 52.7% at Rs 69.1 crore vs Rs 45.3 crore.
- Margin at 11.5% vs 10.5%.
- Net profit up 51.9% at Rs 52.5 crore vs Rs 34.6 crore.
Compared with the previous quarter, 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.
Power and fuel costs fell to 9.3% of revenue from 12% a year earlier, which supported the margin expansion. Employee expenses, however, rose 34.7% to Rs 39.3 crore, and finance costs nearly doubled to Rs 3.7 crore.
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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.
The company is spending more on capacity. Capital work-in-progress rose to Rs 93.1 crore as of Sept. 30 from Rs 26.5 crore at the end of March. Over the same period, current borrowings climbed to Rs 162.9 crore from Rs 92.6 crore. Trade receivables increased to Rs 410.6 crore from Rs 277.8 crore, and 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 Sept. 18, and the company paid out Rs 33.85 crore the same day. It also allotted 15,500 shares under its employee stock option scheme during the half year.
Shares of Vardhman Special Steels rose as much as 16.04% to Rs 398.90 apiece on the NSE after the results were announced. The stock later pared gains and was trading 10.88% higher at Rs 381.15 as of 1:22 p.m.
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