Vardhman Special Steels Reports 31% PAT in Q4 Results; ₹3.5 Dividend Announced

Synopsis:- Delivering a 31 percent jump in full-year net profit to Rs. 122 crore on broadly flat revenues, Vardhman Special Steels has reported a margin expansion-driven FY2025-26 performance, while the board has also declared a dividend of Rs. 3.50 per share under a Regulation 30 and 33 disclosure to BSE and NSE.

Shares of a Ludhiana-based special and alloy steel manufacturer came into focus on April 28, 2026, after the company’s board approved standalone audited financial results for the quarter and year ended March 31, 2026, alongside a dividend recommendation. 

With a market capitalization of Rs. 2,778.17 crore, the shares of Vardhman Special Steels were trading at Rs. 287.34 per share, down 2.03 percent from its previous code of Rs.293.29 apiece. It is trading at a P/E of 23.24.

FY26 Financial Results

For the full year ended March 31, 2026, Vardhman Special Steels reported standalone revenue from operations of Rs. 1,754.43 crore, marginally lower than Rs. 1,764.41 crore in FY2025, a decline of roughly 0.6 percent.

The headline that matters, however, is on the profit line: net profit for the year rose 31.1 percent to Rs. 122.02 crore from Rs. 93.09 crore in the prior year. The gap between a flat topline and a sharply higher bottomline points to meaningful margin expansion.

The primary driver was a significant decline in raw material costs. Cost of materials consumed fell from Rs. 1,093.68 crore in FY2025 to Rs. 974.39 crore in FY2026, a reduction of Rs. 119 crore despite volumes being broadly stable, a tailwind from softer input prices that flowed almost entirely to the bottomline.

Finance costs also fell by 36 percent from Rs. 18.63 crore to Rs. 11.91 crore as the company continued retiring debt. Power and fuel expenses, by contrast, rose to Rs. 190.48 crore from Rs. 177.37 crore, partially offsetting these gains.

A quality-of-earnings note worth flagging: other income includes Rs. 25.57 crore of government grants (down marginally from Rs. 25.01 crore in FY2025) relating to electricity duty exemptions, infrastructure development cess, property tax, and GST refunds under the Punjab Industrial and Business Development Policy 2017. These are recurring but non-operating in nature, and represent a meaningful share of other income of Rs. 42.35 crore for the year.

The fourth quarter was the strongest of the year. Q4 FY26 revenue came in at Rs. 457.92 crore, up 6.9 percent from Rs. 428.04 crore in Q4 FY25, while net profit for the quarter jumped 72.2 percent to Rs. 33.98 crore from Rs. 19.73 crore.

Dividend Declared

The board has recommended a dividend of Rs. 3.50 per fully paid equity share of face value Rs. 10 each for FY2025-26. Payment is subject to shareholder approval at the forthcoming AGM. At the prevailing price, the declared dividend implies a yield of approximately 1.36 percent.

Business Overview

Vardhman Special Steels Limited was demerged from Vardhman Textiles in 2010 and is engaged in the manufacture of billets, steel bars and rods, and bright bars across special and alloy steel grades, from its plant in Ludhiana, Punjab. Listed on both BSE and NSE, the company traces its steel business heritage within the Vardhman Group to 1973.

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