Vardhman Special Steels Limited (VSSL) AI Stock Analysis

• Market Cap: ₹24.58B
• Dividend Yield: 1.03%
• Average Volume (3M): 10.78K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.14
• Revenue Growth: -1.47%
• EPS Growth: -15.20%
• Country: IN
• Employees: 1,247
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.48
• Shares Outstanding: 96,685,680
• 10 Day Avg. Volume: 4,806
• 30 Day Avg. Volume: 10,775
• PEG Ratio: 14.52
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -192.18
• 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: 75 Outperform
• Price Target: ₹285.00 ▲(0.67% Upside)

Vardhman Special Steels Limited benefits from strong technical indicators and a solid financial foundation. However, high valuation metrics and recent profitability challenges temper the overall score.

Positive Factors

Specialized product mix

VSSL's focus on special and alloy long products for automotive and engineering markets creates durable differentiation versus commodity mills. High-spec grades require qualification and repeat orders, supporting stickier customer relationships and structurally higher margin potential over cycles.

Prudent balance sheet / falling leverage

A solid debt-to-equity profile and consistent debt reduction provide enduring financial flexibility. Lower leverage supports capital investment for product qualification, cushions cyclical downturns, and reduces refinancing risk, enabling longer-term strategic initiatives.

Healthy gross profit margin

Sustained gross margins indicate effective raw-material and production cost control on specialized grades. Healthy gross margin underpins the ability to fund quality improvements, R&D and customer qualification, helping preserve profitability through commodity price swings.

Negative Factors

Negative free cash flow (2025)

Negative free cash flow in 2025 signals limited internal funding for capex, working capital or debt reduction. Persisting FCF deficits could force external financing, constrain strategic investments, and increase vulnerability to adverse cycles or rising interest costs.

EBITDA and EBIT margin deterioration

A material margin dip suggests rising input costs or operational inefficiencies that erode core profitability. If structural, margin pressure will reduce return on equity and limit reinvestment capacity, necessitating operational fixes or pricing power restoration.

Volatile operating cash flow

Significant OCF variability undermines predictability of capital allocation and makes funding cycles harder to manage. For a capital-intensive steel producer, inconsistent cash conversion raises the risk of funding shortfalls during downturns and complicates long-term planning.

Vardhman Special Steels Limited Business Overview & Revenue Model

Company Description

Vardhman Special Steels Limited manufactures and sells billets, steel bars, and bright bars of various categories of special and alloy steels in India and internationally. The company serves engineering, automotive, tractor, bearing, and allied industries. Vardhman Special Steels Limited was founded in 1973 and is headquartered in Ludhiana, India.

How the Company Makes Money

Vardhman Special Steels Limited generates revenue through the production and sale of its specialized steel products, catering to both domestic and international markets. The company's primary revenue streams include direct sales to manufacturers in sectors such as automotive and engineering, where high-performance steel is essential. Additionally, VSSL benefits from long-term contracts and partnerships with key industry players, ensuring a steady demand for its products. The company also invests in research and development to create innovative steel solutions, enabling it to capture niche markets and enhance its profitability. Overall, VSSL's focus on quality, customer satisfaction, and strategic partnerships significantly contributes to its financial performance.

Vardhman Special Steels Limited Financial Statement Overview

Summary

Vardhman Special Steels Limited shows strong revenue growth and a solid equity base. However, recent declines in EBIT and EBITDA margins, along with negative free cash flow, indicate areas for operational improvement.

Income Statement

Vardhman Special Steels Limited has demonstrated strong revenue growth, with significant improvements over the years, particularly from 2020 to 2025. The gross profit margin remains healthy, indicating effective cost management. However, there was a noticeable dip in both EBIT and EBITDA margins in 2025 compared to previous years, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company maintains a solid debt-to-equity ratio, reflecting prudent financial management with a consistent reduction in debt over time. The equity ratio is robust, showcasing strong equity financing. However, the return on equity has seen some fluctuations, primarily due to varying net income levels.

Cash Flow

Operating cash flow has shown variability, peaking in 2024 but facing a reduction in 2025. Free cash flow was negative in 2025, raising potential concerns about liquidity and capital expenditure efficiency. The operating cash flow to net income ratio indicates that cash generation relative to net income needs improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.83B	17.64B	16.61B	17.35B	13.68B	9.37B
Gross Profit	7.14B	2.50B	6.22B	6.07B	5.51B	3.98B
EBITDA	1.68B	1.77B	1.71B	1.80B	2.03B	1.15B
Net Income	869.05M	930.88M	916.28M	1.00B	1.01B	441.95M
Balance Sheet
Total Assets	0.00	11.36B	10.40B	10.31B	9.21B	8.03B
Cash, Cash Equivalents and Short-Term Investments	213.25M	213.25M	76.40M	295.38M	313.51M	523.40M
Total Debt	0.00	1.20B	837.06M	1.44B	1.62B	1.91B
Total Liabilities	-7.98B	3.38B	3.20B	3.88B	3.66B	3.43B
Stockholders Equity	7.98B	7.98B	7.19B	6.42B	5.55B	4.59B
Cash Flow
Free Cash Flow	0.00	-87.44M	744.43M	447.87M	235.80M	777.55M
Operating Cash Flow	0.00	1.27B	1.42B	735.75M	588.80M	872.39M
Investing Cash Flow	0.00	-1.27B	-501.43M	-148.35M	-91.12M	67.96M
Financing Cash Flow	0.00	30.32M	-941.58M	-494.77M	-518.37M	-939.98M

Vardhman Special Steels Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 283.10
• 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:VSSL, the sentiment is Negative. The current price of 283.1 is above the 20-day moving average (MA) of 265.34, above the 50-day MA of 276.78, and above the 200-day MA of 266.92, indicating a bearish trend. The MACD of -8.25 indicates Positive momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VSSL.

Vardhman Special Steels Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VSSL	75 Outperform	₹24.58B	21.29	―	1.03%	-1.47%	-15.20%
STEELCAS	72 Outperform	₹18.70B	20.68	―	0.76%	27.37%	42.85%
NITINSPIN	67 Neutral	₹18.51B	11.11	―	0.94%	1.79%	7.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPL	57 Neutral	₹18.08B	17.33	―	0.43%	30.14%	48.14%
MSPL	51 Neutral	₹16.74B	-20.60	―	―	-3.14%	-466.99%
MADRASFERT	48 Neutral	₹12.25B	15.47	―	―	3.38%	0.68%

Vardhman Special Steels Limited Corporate Events

Vardhman Special Steels Releases Q3 FY26 Earnings Call Transcript

Vardhman Special Steels Limited has released the transcript of its Q3 FY26 earnings conference call held on 21 January 2026, in line with disclosure requirements under SEBI’s listing regulations. The call, led by Chairman and Managing Director Sachit Jain along with senior members of the finance and executive teams, focused on discussing the company’s financial performance for the quarter, providing stakeholders with detailed management commentary and reinforcing the firm’s commitment to transparency in its market communications.

Vardhman Special Steels Faces Rs 11.56 Lakh GST-Linked Penalty, Plans Appeal

Vardhman Special Steels Limited has disclosed that the Central Tax authorities in Pune have imposed a penalty of Rs 11.56 lakh related to a second e-way bill generated by a customer using an invoice number issued by the company. The company plans to appeal the order before the Additional Commissioner (Appeals-I), Central Excise & GST, Pune, and has clarified that the penalty and related proceedings are not expected to have any material impact on its financial performance, operations or other activities, limiting the implications for shareholders and other stakeholders.

Vardhman Special Steels Dematerializes 173 Shares in November 2025

Vardhman Special Steels Limited has announced the dematerialization of 173 equity shares for the month of November 2025. This process involved the cancellation of physical share certificates and updating the company’s records to reflect the Depository as the registered owner, in compliance with regulatory requirements. This move is part of the company’s ongoing efforts to streamline operations and enhance shareholder value.

Vardhman Special Steels Releases Monitoring Agency Report for Q3 2025

Vardhman Special Steels Limited has released its Monitoring Agency Report for the quarter ending September 30, 2025. The report, issued by CRISIL Ratings Limited, details the utilization of proceeds from the company’s issuance of equity shares through a Preferential Issue. This announcement is significant for stakeholders as it provides transparency regarding the company’s financial activities and compliance with SEBI regulations.