Vaswani Industries Limited (VASWANI) AI Stock Analysis

• Market Cap: ₹1.62B
• Dividend Yield: N/A
• Average Volume (3M): 8.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 3.59%
• EPS Growth: -1.31%
• Country: IN
• Employees: 255
• Sector: Services
• Sector Strength: N/A
• Industry: Steel
• EPS (TTM): -2.42
• Shares Outstanding: 31,346,153
• 10 Day Avg. Volume: 6,653
• 30 Day Avg. Volume: 8,003
• PEG Ratio: -2.04
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -1.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹55.00 ▼(-8.49% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily supported by decent financial performance (revenue growth and improved gross margin), but is weighed down by leverage and negative free cash flow. Technicals also pressure the score as the stock trades below key moving averages, and valuation is a major headwind due to the very high P/E.

Positive Factors

Revenue Growth

A 5.7% year-over-year revenue increase shows durable demand and expanding sales volumes for core steel products. Consistent top-line growth supports scale economics, underpins future margin recovery opportunities, and strengthens the revenue base for multi-quarter planning and investment.

Improved Gross Margin / Cost Management

A meaningful improvement in gross margin reflects sustainable operational improvements—better input sourcing, mix management or process efficiency—reducing sensitivity to commodity swings. Permanent margin expansion enhances cash generation and resiliency across steel cycles.

Solid Operating Cash Flow

Consistent operating cash generation that covers net income indicates the core manufacturing business converts earnings into cash. This durable cash-flow capability supports working capital needs, servicing liabilities, and funding ongoing investment without immediate reliance on equity issuance.

Negative Factors

High Leverage

A high debt-to-equity position raises structural financial risk: interest costs and refinancing needs increase sensitivity to rate moves and cyclical downturns, constraining strategic flexibility and making sustained investment or dividend policies more conditional on deleveraging or stronger cash conversion.

Negative Free Cash Flow

Negative free cash flow driven by heavy capex indicates the business currently consumes cash to expand or maintain capacity. Persisting negative FCF can force external financing, elevate leverage, and pressure liquidity if capex does not translate into higher returns or improved margins over subsequent quarters.

Earnings Volatility / EPS Decline

A very large EPS decline signals volatile profitability and potential cost, pricing or one-off pressures. Durable shareholder returns and retained earnings are impaired by such swings, hampering the company’s ability to rebuild equity, reduce leverage, or fund growth from internal earnings reliably.

Vaswani Industries Limited Business Overview & Revenue Model

Company Description

Vaswani Industries Limited manufactures and trades in iron ore pellets, sponge iron, steel billets, HB wires, and ingots in India. The company operates through four segments: Iron & Steel, Power, Real Estate, and Agri. It also generates power through waste heat recovery boilers with an installed capacity of 11.5 megawatts. Vaswani Industries Limited was incorporated in 2003 and is based in Raipur, India.

How the Company Makes Money

VASWANI generates revenue through multiple streams, primarily by manufacturing and selling industrial products across its key sectors. The company produces textiles and steel products, which are sold directly to businesses and industries requiring these materials. Additionally, VASWANI engages in trading activities, allowing them to buy and sell products from other manufacturers, thereby expanding their market reach. Significant partnerships with suppliers and distributors enhance their distribution capabilities, contributing to revenue growth. The company may also benefit from favorable market conditions and demand for its products, driving further profitability.

Vaswani Industries Limited Financial Statement Overview

Summary

Income statement trends are supportive (revenue up 5.7% and improved gross margin), but overall quality is tempered by slightly weaker net margin, high leverage on the balance sheet, and negative free cash flow driven by heavy capex despite solid operating cash flow.

Income Statement

Vaswani Industries has demonstrated consistent revenue growth, with a 5.7% increase over the past year. The gross profit margin improved significantly, indicating better cost management. However, the net profit margin slightly decreased, reflecting higher expenses relative to income. EBIT and EBITDA margins have remained stable, showcasing operational efficiency, albeit with room for improvement.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, suggesting a reliance on debt financing, which could pose a risk if interest rates rise. Return on equity is moderate, reflecting decent profitability for shareholders. The equity ratio indicates a strong asset base supported by equity, enhancing financial stability. Overall, the balance sheet is robust but could benefit from reduced leverage.

Cash Flow

Cash flows reveal some concerns, with free cash flow turning negative due to substantial capital expenditures. The operating cash flow remains solid, covering net income comfortably. However, the negative free cash flow requires attention to ensure sustainable growth and investment funding. Improving cash management could enhance the company's financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.17B	4.12B	3.89B	3.92B	3.74B	3.14B
Gross Profit	845.14M	667.29M	285.81M	272.57M	351.00M	297.77M
EBITDA	302.97M	255.56M	218.50M	214.21M	181.21M	188.12M
Net Income	105.71M	86.04M	90.33M	60.11M	44.23M	40.62M
Balance Sheet
Total Assets	5.03B	3.62B	1.89B	2.01B	2.17B	1.97B
Cash, Cash Equivalents and Short-Term Investments	204.83M	450.63M	2.16M	12.29M	9.58M	1.10M
Total Debt	2.66B	1.56B	328.79M	358.48M	528.61M	416.40M
Total Liabilities	3.51B	2.24B	671.66M	884.71M	1.10B	941.52M
Stockholders Equity	1.52B	1.37B	1.22B	1.13B	1.07B	1.02B
Cash Flow
Free Cash Flow	-1.49B	-1.02B	220.65M	291.50M	-19.07M	276.99M
Operating Cash Flow	107.99M	343.61M	307.01M	299.30M	-891.00K	286.96M
Investing Cash Flow	-1.46B	-1.34B	-93.56M	-8.12M	-17.26M	-9.97M
Financing Cash Flow	1.11B	1.22B	-106.77M	-255.64M	23.46M	-207.36M

Vaswani Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VASWANI, the sentiment is Negative. The current price of 60.1 is above the 20-day moving average (MA) of 57.25, above the 50-day MA of 56.45, and above the 200-day MA of 55.19, indicating a bearish trend. The MACD of -1.26 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VASWANI.

Vaswani Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPINFRA	62 Neutral	₹3.43B	186.32	―	0.47%	-7.32%	-26.92%
VASWANI	56 Neutral	₹1.62B	-6.49	―	―	3.59%	-1.31%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SADBHAV	46 Neutral	₹1.43B	-0.64	―	―	―	―
ARSSINFRA	43 Neutral	₹1.25B	-678.38	―	―	-75.03%	-17499.32%
IL&FSENGG	40 Underperform	₹3.06B	-213.66	―	―	-6.13%	98.35%

Vaswani Industries Limited Corporate Events

Vaswani Industries Swings to Quarterly Loss Despite Revenue Growth

Vaswani Industries Limited reported its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing revenue from operations of Rs 12,419.34 lakh for the quarter and Rs 32,348.47 lakh for the nine-month period. Despite healthy top-line growth compared with the previous year, the company posted a quarterly net loss of Rs 796.42 lakh, driven by higher material, finance, and other operating costs.

Total expenses for the quarter rose to Rs 12,716.45 lakh, resulting in a loss before tax of Rs 288.13 lakh and turning profitability from the prior year into a loss position year-to-date of Rs 115.04 lakh. Earnings per share declined to a negative Rs 2.48 for the quarter, signaling margin pressure and potentially challenging operating conditions for shareholders and lenders, even as the board formally approved the results after a limited review by statutory auditors.

Vaswani Industries Extends Trading Window Closure as Board Delays Q3 Results

Vaswani Industries Limited has announced that its previously scheduled board meeting on February 13, 2026, to consider and approve unaudited standalone financial results for the quarter ended December 31, 2025, was cancelled due to non-finalisation of the financial statements. The board will now meet on February 28, 2026, to review and approve these results along with the statutory auditors’ limited review report.

As a result of this rescheduling, the company’s trading window closure, which began on January 1, 2026 under SEBI’s insider trading regulations, will remain in force for directors, key managerial personnel, designated employees and other covered persons until 48 hours after the conclusion of the February 28 board meeting, i.e., up to March 1, 2026. This extended closure underscores the company’s adherence to regulatory norms and aims to prevent any potential misuse of unpublished price-sensitive information.

Vaswani Industries Secures BSE Nod to List Preferential Shares to Promoter

Vaswani Industries Limited has received in-principle approval from BSE for the listing of 1.6 million equity shares of ₹10 each issued at a premium of ₹40 per share on a preferential basis to a promoter allottee, aligning with securities listing regulations. This approval, together with an earlier in-principle nod from the National Stock Exchange of India for the same shares, clears a key procedural hurdle for the company’s preferential issue, paving the way for an increase in promoter equity participation and a potential strengthening of the company’s capital structure.

Vaswani Industries Extends Trading Window Closure Ahead of Quarterly Results

Vaswani Industries Limited has announced that its trading window for directors, key managerial personnel, designated employees and other covered persons will remain closed in line with SEBI’s Prohibition of Insider Trading Regulations, 2015. The company’s board of directors is scheduled to meet on 13 February 2026 to consider unaudited financial results for the quarter ended 31 December 2025, and the trading window—already shut since 1 January 2026—will continue to be closed until 48 hours after the board meeting, i.e., up to 15 February 2026, reinforcing its adherence to corporate governance and insider trading safeguards for stakeholders.

Vaswani Industries Closes Trading Window Ahead of Q3 FY2025-26 Results

Vaswani Industries Limited has announced that, in line with its internal code for regulating, monitoring and reporting trading by insiders and the SEBI (Prohibition of Insider Trading) Regulations, 2015, it will close its trading window for company securities from 1 January 2026. The window will reopen 48 hours after the declaration of the unaudited financial results for the quarter and period ending 31 December 2025, and the restriction applies to promoters, promoter group, directors, key managerial personnel, designated persons and their immediate relatives. This move is a standard compliance measure aimed at preventing insider trading ahead of financial disclosures and underscores the company’s adherence to regulatory norms, providing additional assurance to investors about the integrity of its disclosure process.

Vaswani Industries Announces Leadership Re-appointments and Compensation Adjustments

Vaswani Industries Limited announced the re-appointment of Mr. Yashwant Vaswani as Whole-Time Director for another five-year term, along with a revision of his remuneration. The Board also approved a Postal Ballot Notice seeking shareholder approval for the re-appointment and salary adjustments for several key executives, reflecting a strategic focus on leadership continuity and compensation alignment.

Vaswani Industries Announces Leadership Re-Appointments and Remuneration Adjustments

Vaswani Industries Limited has announced the re-appointment of Mr. Yashwant Vaswani as Whole-Time Director for another five-year term starting December 10, 2025, with a revised remuneration package. Additionally, the company has approved a Postal Ballot Notice to seek shareholder approval for the re-appointment and remuneration adjustments for several key executives, including Mr. Ravi Vaswani, Smt. Sudha Vaswani, Smt. Manisha Vaswani, Mr. Kushal Vaswani, and Smt. Tanya Vaswani, who hold various significant positions within the company.