Vardhman Special Steels Q2 Results: Profit Up 52% to ₹52.5 Crore on 27% Volume Growth (Oct 27, 2026)

The Vardhman Special Steels Q2 results landed on October 27, 2026, and the market liked what it saw. The Ludhiana-based maker of special and alloy steel bars reported a net profit of ₹52.49 crore for the July-September quarter, up 51.88% from ₹34.56 crore a year ago, according to the company’s media release filed with NSE. Revenue from operations rose 38.81% to ₹600.05 crore from ₹432.27 crore.

The stock reacted fast. CNBC Awaaz (CNBC-TV18’s Hindi service) reported that the shares jumped about 16% to around ₹399 during Tuesday’s session, against a previous close of about ₹343.

Vardhman Special Steels Q2 results: the key numbers

All figures below are for the quarter ended September 30, 2026, from the company’s filing, compared with the same quarter last year (Q2 FY26) unless stated otherwise.

• Revenue from operations: ₹600.05 crore, up 38.81% year on year and about 23.5% higher than ₹486.01 crore in the June quarter.
• Net profit (PAT): ₹52.49 crore, up 51.88% year on year and about 27.4% above the June quarter’s ₹41.19 crore.
• EBITDA including other income: ₹83.86 crore versus ₹56.48 crore, up 48.48%.
• Rolled product volumes: 70,440 tonnes versus 55,536 tonnes, up 26.84%. Total sales of 70,601 tonnes also include 160 tonnes of billets.
• EBITDA per tonne: ₹11,346 on rolled sales, a figure the company says excludes income on unutilised funds invested by its partner Aichi Steel Corporation.
• Basic EPS: ₹5.43 versus ₹3.61.

Where the growth came from

Volume did most of the heavy lifting. Tonnage rose about 27%, while revenue rose about 39%, so the gap points to better realisations per tonne, which is exactly what the company credits along with higher sales.

The profit jump has a few other ingredients, and the company lists them plainly: a higher GST refund, cheaper raw material inventory carried over from the previous quarter, and the gradual payoff from last year’s capex on its Kocks Block and reheating furnace. We’d treat the inventory benefit as the part least likely to repeat every quarter.

Strip other income (₹14.74 crore this quarter, ₹11.22 crore a year ago) out of the reported EBITDA and operating EBITDA works out to about ₹69.1 crore, up from roughly ₹45.3 crore. That’s a margin of about 11.5% of revenue, against about 10.5% last year. Those are our calculations from the company’s investor presentation on BSE, and they line up with the ₹69.3 crore and 11.5% CNBC Awaaz reported. One catch: the same maths gives about 12.0% for the June quarter, so the margin actually slipped a little sequentially even as profit grew. If you want a refresher on reading this metric, our guide to EBITDA margin covers it.

Costs tell a mixed story. Power and fuel cost ₹55.96 crore against ₹51.71 crore a year ago, which is only about 9.3% of revenue now versus about 12.0% then. Employee expenses climbed to ₹39.26 crore from ₹29.15 crore, and finance costs nearly doubled to ₹3.68 crore from ₹1.90 crore.

First-half picture and what’s next

For April-September, revenue rose 25.41% to ₹1,086.06 crore and PAT jumped 72.02% to ₹93.68 crore, from ₹54.46 crore in the first half of FY26. EBITDA including other income was ₹152.15 crore, up 58.80%.

On the strategy side, chairman and managing director Sachit Jain pointed to the foundation stone laid during the quarter for a forging facility in Ludhiana, being built with Aichi Steel Corporation. That’s a move from selling steel bars to making forged components for automotive customers. The company also says it is working on a planned greenfield special steel facility and wants to diversify into railways, oil and gas and other industrial segments.

For investors, the quarter looks clean on volumes and pricing. The questions for the next few results are whether the one-off helpers, mainly the cheaper carried-forward inventory and the GST refund, fade, and how quickly the forging business adds revenue. Our checklist on how to analyse quarterly results is a handy way to track that.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before investing.