Vardhman Special Steels Limited (VSSL), headquartered in Ludhiana, has reported a 6.2% year-on-year rise in annual revenue to ₹1,764.41 crore for the financial year ending March 31, 2025. Alongside the results, the company also revealed plans to establish a new greenfield steel plant in Punjab, with an investment of ₹2,000 crore. At its board meeting held on April 22, 2025, the company proposed a dividend of ₹3 per share, up from ₹2 in the previous year, pending shareholder approval at the upcoming Annual General Meeting.
For the financial year, VSSL recorded a 2.84% increase in EBITDA (including other income) to ₹177.16 crore. Net profit rose by 1.59% to ₹93.09 crore. The company’s annual sales volume reached 219,996 metric tonnes (MT), marking a 12.8% increase compared to 195,024 MT in FY24. This included 215,843 MT of rolled products (up 10.67%) and 4,153 MT of billets.
In the final quarter of FY25, VSSL posted revenue of ₹428.04 crore—a 2.59% decline compared to the same period last year. Despite a 3.29% rise in sales volume to 53,834 MT, the dip in revenue was attributed to lower average realizations. Quarterly EBITDA dropped 32.89% to ₹38.62 crore, while profit after tax decreased by 39.83% to ₹19.73 crore, largely due to contracting gross margins.
A key highlight of the announcement was the company’s strategic move to set up a new greenfield steel plant in Punjab. The upcoming facility will have a billet production capacity of 500,000 MT annually, supported by a rolling mill and testing infrastructure. The project will be financed through internal resources, equity, and debt.
“This long-anticipated investment will help us meet the expected shortfall in capacity post-2028,” said Sachit Jain, Vice Chairman and Managing Director. “It also aligns with the rising demand for advanced quality standards and the shift towards more sustainable steelmaking practices. We believe this expansion will enhance our competitiveness by lowering costs and enabling entry into new product categories such as wire rods and forging materials.” The new plant is expected to be operational by FY 2029-30.
Mr Jain also noted that current market conditions remain subdued, with limited room for price hikes. However, input costs have remained stable. He added that the company’s newly installed Kocks Block—a precision rolling mill—has entered its stabilization phase and is expected to improve productivity and reduce inventory once fully operational.
Vardhman Special Steels is one of India’s leading producers of special and alloy steels, serving a wide range of sectors including automotive, engineering, agricultural machinery, and industrial components, both in India and abroad.
