VARDHMAN SPC STEEL LTD

During the earnings conference call held on July 23, 2026, management reported a strong performance for Q1 FY27, highlighting a 6.5% increase in sales volume to 59,000 tons and a 12% rise in revenue to INR 486 crores. Management noted the signing of a Technical Assistance Agreement with Aichi Steel for a forging unit, with project costs anticipated to be lower than initially estimated. They mentioned challenges in meeting customer demand and plans to increase production capacity to 360,000 tons, pending environmental approval. The company achieved an EBITDA of INR 68 crores, with a per ton EBITDA of INR 10,760. Management indicated ongoing improvements in operational efficiency and a focus on diversifying into non-automotive steel markets. They also discussed the potential for increased solar capacity and its impact on cost savings. Overall, management expressed confidence in future profitability improvements driven by cost reductions and increased production.

Management emphasized strong performance and growth opportunities.