Vardhman Special Steels Limited (VSSL) AI Stock Analysis

• Market Cap: ₹28.61B
• Dividend Yield: 1.01%
• Average Volume (3M): 10.78K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.02
• Revenue Growth: -1.47%
• EPS Growth: -15.20%
• Country: IN
• Employees: 1,247
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 4.20
• Shares Outstanding: 96,561,930
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹333.00 ▲(14.02% 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

Revenue Growth

Consistent revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.

Solid Equity Base

A solid equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Strong Market Position

Strategic partnerships and long-term contracts ensure steady demand and reinforce VSSL's competitive position in the steel industry.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth and may indicate inefficiencies in capital expenditure management.

Decline in Margins

Decreased margins suggest rising operational costs or reduced efficiency, which could impact profitability if not addressed.

Cash Generation Concerns

Challenges in converting income into cash may affect liquidity and the ability to fund operations and growth initiatives.

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: Positive
• Last Price: 292.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 292.05 is above the 20-day moving average (MA) of 285.13, above the 50-day MA of 286.73, and above the 200-day MA of 256.77, indicating a bullish trend. The MACD of 2.67 indicates Negative momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹28.61B	26.72	―	1.01%	-1.47%	-15.20%
STEELCAS	72 Outperform	₹20.92B	23.49	―	0.77%	27.37%	42.85%
NITINSPIN	67 Neutral	₹18.05B	10.81	―	0.93%	1.79%	7.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPL	57 Neutral	₹19.93B	19.10	―	0.43%	30.14%	48.14%
MSPL	51 Neutral	₹20.44B	-25.51	―	―	-3.14%	-466.99%
MADRASFERT	48 Neutral	₹11.85B	15.53	―	―	3.38%	0.68%

Vardhman Special Steels Limited Corporate Events

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.

Vardhman Special Steels Publishes Financial Results for September 2025

Vardhman Special Steels Limited announced the publication of its financial results for the quarter and half-year ending September 30, 2025, in prominent newspapers. This announcement is part of the company’s compliance with SEBI regulations, ensuring transparency and timely disclosure of financial performance. The publication of these results is crucial for stakeholders, as it provides insights into the company’s financial health and operational performance, potentially impacting investor confidence and market positioning.

Vardhman Special Steels Reschedules Q2 & H1 FY26 Earnings Call

Vardhman Special Steels Limited has announced a rescheduling of its Q2 and H1 FY26 earnings conference call, now set for November 3, 2025, at 2:00 PM IST. This call will provide insights into the company’s financial performance, strategy, and outlook, potentially impacting its operations and stakeholder interests.

Vardhman Special Steels Releases Unaudited Financial Results for September 2025

Vardhman Special Steels Limited has released its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, approved by the Board of Directors, indicate compliance with Indian Accounting Standards and SEBI regulations. The limited review report by independent auditors found no discrepancies or material misstatements, suggesting stable financial health and transparency in reporting, which could reassure stakeholders about the company’s operational integrity.

Vardhman Special Steels Unveils New Employee Stock Option Plan

Vardhman Special Steels Limited has announced the approval of the Vardhman Special Steels Limited Employee Stock Option Plan 2025, following a board meeting on October 28, 2025. This equity-based compensation scheme is designed for eligible employees and is subject to shareholder approval. The plan will be implemented and administered by the Nomination and Remuneration Committee, potentially enhancing employee engagement and aligning their interests with the company’s growth objectives.

Vardhman Special Steels Schedules Earnings Call for Q2 & H1 FY26

Vardhman Special Steels Limited has announced an upcoming earnings conference call scheduled for October 29, 2025, to discuss its financial performance for the second quarter and first half of fiscal year 2026. This event will provide insights into the company’s strategy and outlook, potentially impacting its operations and industry positioning.