Vardhman Special Steels Limited has announced plans to establish a new greenfield steel plant in Punjab with an annual billet production capacity of 500,000 metric tonnes. The capital expenditure for the facility is estimated at approximately INR 20 billion and will be funded through internal accruals, equity, and debt. The company expects the plant to be commissioned by the financial year 2029–30.
According to the company, the new plant is aimed at addressing anticipated capacity constraints beyond 2028. It will include rolling and testing facilities, and is expected to support the production of existing product lines as well as enable entry into new segments such as wire rods, forgings, and non-automotive applications. The facility is also expected to reduce manufacturing costs and meet quality requirements from original equipment manufacturers (OEMs).
In the financial year ended March 31, 2025, Vardhman Special Steels reported a sales volume of 219,996 metric tonnes, including 4,153 metric tonnes of billets. This represents a 12.8% increase over the previous year. Revenue from operations for the year rose 6.2% year-on-year to INR 17.64 billion. EBITDA (including other income) stood at INR 1.77 billion, an increase of 2.84% from the previous year. Profit after tax was INR 930.9 milion, up 1.59% year-on-year.
During the same period, the company reduced long-term borrowings to INR 32.9 million. It also commissioned the Kocks Block, which is currently in the stabilization phase and is expected to improve productivity and lower inventory needs.
For the fourth quarter of FY25, the company reported a sales volume of 53,834 tonnes, a 3.29% year-on-year increase. Revenue was INR 4.28 billion, while EBITDA and PAT for the quarter were INR 386.2 million and INR 197.3 million, respectively.
The company’s board has proposed a dividend of INR 3 per equity share for FY25, up from INR 2 in the previous year.
Sachit Jain, Vice Chairman and Managing Director, commented, “Despite a 14-day plant shutdown, volumes increased by 3.29% year-on-year. Looking ahead, market demand remains muted, limiting price increase opportunities. However, we remain focused on improving operational efficiency and positioning the company for sustainable long term growth.”