Vardhman Special Steels to Set Up New ₹2,000 Crore Greenfield Plant in Punjab

Vardhman Special Steels Ltd. has declared the plan to establish a greenfield steel plant in Punjab, to increase its production capacity by two-fold considerably. The new plant will have a capacity of 5,00,000 tonnes of annual billet manufacturing, based on a rolling mill and sophisticated test facilities.

The project will entail a capital outlay of around ₹2,000 crore, financed through internal accruals, equity, and debt. The plant commissioning is planned for FY 2029–30.

The growth is planned to meet the anticipated shortage of capacity post-2028, keeping pace with evolving OEM quality standards, and matching world market trends in the circular economy and green steel. It will also enable Vardhman to diversify into forgings, wire rods, and non-automotive uses.

We are pleased to announce the establishment of our new greenfield facility, which is a significant milestone towards positioning Vardhman Special Steels for the next growth phase,” said Sachit Jain, Vice Chairman & Managing Director. “The expansion will increase our capacity to serve future demand, attain improved cost efficiencies, and follow global sustainability trends.”

At the same time, Vardhman Special Steels declared its FY25 audited results. Topline revenue went up 6.20% year-on-year to ₹1,764 crore. EBITDA (along with other income) rose by 2.84% to ₹177 crore and profit after tax (PAT) was up 1.59% at ₹93.09 crore. The Board recommended a dividend of ₹3 per share for FY25 against ₹2 per share last year.

For Q4 FY25, the company recorded a sales volume of 53,834 tonnes, a 3.29% increase despite a 14-day rolling mill shutdown. Quarterly revenue was ₹428 crore and PAT was ₹19.73 crore.

“In Q4 FY25, we delivered volume growth despite operational disruptions. But more-than-expected price cuts impacted realisations and profitability,” Jain said. “With the successful commissioning of the Kocks Block, we look forward to further productivity benefits in the quarters to come.”