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This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. Result Update Presentation Q2 & H1 FY27
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Disclaimer This presentation has been prepared by Vardhman Special Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Table of Contents 01 02 03 04 Financial Highlights Company Overview Business Overview Way Ahead
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Financial Highlights 01
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Management’s Message “ ” “We are pleased to report a strong performance in Q2 FY27, driven by healthy growth in sales volumes, revenue and profitability, supported by robust customer demand, improved realizations and better operating leverage. Our continued focus on cost optimization and operational efficiencies, the benefit of lower-cost raw material inventory carried forward from the previous quarter, and the progressive realization of benefits from last year’s capex on the Kocks Block and reheating furnace contributed to our performance. A key milestone during the quarter was the laying of the foundation stone for our upcoming forging facility in Ludhiana by the Hon’ble Chief Minister of Punjab, S. Bhagwant Singh Mann. Being developed in collaboration with Aichi Steel Corporation, the facility marks an important step towards forward integration, enabling us to move up the value chain into higher-value forged components and strengthen our engagement with automotive customers. Looking ahead, we remain focused on strengthening our core operations, progressing with our planned greenfield special steel facility and expanding our value-added product portfolio. Diversification into sectors such as railways, oil & gas and other industrial segments will remain an integral part of our long- term strategy. With a continued emphasis on operational excellence, innovation and sustainability, we are confident of building a resilient business and creating sustainable long-term value for our shareholders. I thank our shareholders for their continued trust, and our customers, business partners and employees for their valuable support and contribution to the Company’s growth.” SACHIT JAIN Chairman & Managing Director, VSSL
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Financial Highlights Q2 FY27 INR Crore Q2 FY27 Q2 FY26 Y-o-Y % Q1 FY27 Revenue From Operations 600.05 432.27 38.81% 486.01 Other Income 14.74 11.22 9.86 Total Income 614.79 443.49 38.62% 495.86 Cost of Materials Consumed 318.89 260.73 293.22 Purchases of Stocks 0.00 0.00 0.00 Changes In Inventory 36.39 (11.90) (14.89) Raw Material Expenses 355.27 248.83 278.34 Employee Expenses 39.26 29.15 32.15 Power & Fuel 55.96 51.71 50.91 Other Expenses 80.43 57.33 66.18 Total Expenditure 530.93 387.01 427.58 EBITDA* 83.86 56.48 48.48% 68.29 Depreciation 9.62 8.08 9.57 Interest / Finance Cost 3.68 1.90 3.32 PBT 70.56 46.50 51.73% 55.40 Tax 18.06 11.94 14.22 PAT 52.49 34.56 51.88% 41.19 Basic EPS in Rs. 5.43 3.61 50.42% 4.26 • Volumes for Q2 FY27 stood at 70,440 tonnes (only Rolled Products) as against 55,536 tonnes in Q2 FY26 • Revenue increased 38.81% YoY mainly due to the increase in sales volume & higher realizations • Increase in EBITDA was driven by higher sales volumes & realisations, higher GST refund, the benefit of lower-cost raw material inventory carried forward from the previous quarter, and the progressive realization of benefits from last year’s capex on the Kocks Block and reheating furnace contributed to our performance • EBITDA per Ton for the quarter was Rs. 11,346 (on rolled sales quantity) excluding the non-operational Income to the extent of Income on unutilized funds invested by ASC *EBITDA is including Other Income
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Financial Highlights H1 FY27 INR Crore H1 FY27 H1 FY26 Y-o-Y % Revenue From Operations 1,086.06 865.97 25.41% Other Income 24.60 18.72 Total Income 1,110.65 884.69 25.54% Cost of Materials Consumed 612.11 489.61 Purchases of Stocks 0.00 0.00 Changes In Inventory 21.50 29.37 Raw Material Expenses 633.61 518.98 Employee Expenses 71.41 55.35 Power & Fuel 106.87 95.32 Other Expenses 146.61 119.23 Total Expenditure 958.50 788.88 EBITDA* 152.15 95.81 58.80% Depreciation 19.20 17.08 Interest / Finance Cost 6.99 5.46 PBT 125.96 73.27 71.91% Tax 32.28 18.81 PAT 93.68 54.46 72.02% Basic EPS in Rs. 9.69 6.04 60.43% *EBITDA is including Other Income • Volumes for H1 FY27 stood at 129,544 tonnes (only Rolled Products) as against 1,11,109 tonnes in H1 FY26 • Increase in Revenue by 25.41% mainly due to increase in sales volume and higher realizations • EBITDA per Ton for H1 FY27 was Rs. 11,053 (on rolled sales quantity). This excludes the non- operational Income to the extent of Income on unutilized funds invested by ASC
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Balance Sheet Highlights INR Crore As on 30th Sep’26 As on 31st Mar’26 Equity 1338.40 1,277.32 Equity Share Capital 96.70 96.69 Other Equity 1241.69 1,180.63 Non-current Liabilities 30.04 25.86 Financial Liabilities Borrowing 0.00 0.00 Lease Liability 0.00 0.10 Other Financial Liabilities 0.68 0.65 Provisions 2.33 2.09 Deferred Tax Liabilities (net) 26.63 22.69 Other Non-Current Liabilities 0.41 0.33 Current Liabilities 402.24 329.93 Financial Liabilities Borrowings 162.93 92.65 Lease Liabilities 0.23 0.25 Trade Payables Total O/s dues of Micro, Small Ent 16.34 9.41 Total O/s other Than Above 110.81 174.80 Other Financial Liabilities 108.19 34.89 Provisions 1.24 1.32 Other Current Liabilities 13.75 16.61 Current Tax Liability (Net) 6.74 0.00 Total Equity & Liabilities 1788.68 1,633.12 INR Crore As on 30th Sep’26 As on 31st Mar’26 Non-Current Assets 768.31 677.73 Property Plant & Equipment 616.77 584.76 Capital work in progress 93.06 26.47 Other Intangible Assets 0.01 0.01 Right of Use Asset 0.15 0.23 Financial Assets Long Term Investments 4.14 3.35 Long Term Loans 2.28 2.31 Other Financial Assets 2.61 2.92 Deferred Tax Assets (Net) 0.47 0.00 Other Tax Assets (Net) 0.00 0.47 Other Non-Current Assets 48.81 57.21 Current Assets 1020.37 955.38 Inventories 331.70 350.24 Financial Assets Investments 166.04 154.80 Trade Receivables 410.61 277.84 Cash & Cash Equivalents 20.73 6.27 Other Bank Balance 0.32 52.29 Loans 2.47 2.34 Other Financial Assets 49.17 39.72 Assets Held for Sale 0.00 0.00 Other Current Assets 39.33 71.87 Total Assets 1788.68 1,633.12
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Company Overview 02
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About Us Amongst India’s Leading Steel Bar Producers for Automotive Applications ▪ Incorporated in May 2010 ▪ Headquartered in Ludhiana, Punjab ▪ Caters to sectors such as Engineering, Automotive, Tractor, Bearing and Allied Industries Specialized Product offerings – ▪ Steel Bars and Rods and Bright Bars of various categories of Special & Alloy Steels Experienced Management Team ▪ Significant experience in Steel Industry ▪ Long term vision and proven ability to achieve long term goals for Company ▪ Strategic alliance with Aichi Steel Corporation 200+ Reputed and long-term customers ▪ Toyota, Hero Moto Corp, Caterpillar, Hino Motors, Maruti, Bajaj and Hyundai, among others State-of- art manufacturing facilities ▪ Cutting-edge manufacturing technology ▪ Manufacturing Capacity ➢ Billets - 3,00,000 MTPA ➢ Rolled Bars – 2,70,000 MTPA Strong Domestic & International Customer Base for forging applications ▪ Thailand, Taiwan, Turkey, Russia, Germany and Spain Quality Standards, Assurance & Certifications ▪ ISO 14001 (2015); ISO 45001 (2018); ISO 9001 (2015); IATF 16949 (2016) & ISO 17025 (2017)
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JOURNEY SO FAR... 1973- 2011 2012 - 2015 2016 - 2018 2019 – Till Date • 1973 – Started as Oswal Steels - 50,000 TPA capacity of special & alloy steels • 1986 - Acquired Mohta Alloys with capacity of 1,00,000 TPA • 1995 – Installed modern Steel Melting Shop with Electromagnetic Stirrer • 2000 – Commissioned Vacuum Degassing System • 2001 - Strengthened product portfolio – added Bright Bar Facility • 2010 - Independent identity under Vardhman Group • 2012 - Listed on BSE & NSE • 2013 – Installed fully automatic rolling mill with capacity of 1,50,000 TPA & Magnaflux leakage testing system (Dr. Foerster Germany), and Ultrasonic Testing from (Olympus, Canada) • July 2015 – Installed Fume Extraction system • Aug 2015 – Increased Bright bars capacity to 36,000 TPA & 1,80,000 TPA for Hot Rolled • Dec 2016 – Upgraded transformer & allied equipment to reduce melting time & resulting in SMS capacity to 1,65,000 TPA • April 2017 – Rights Issue of Rs 67.85 Cr. • Oct 2017 – Purchased ~8 acres of adjoining land for Rs. 36 Cr. • Feb 2018 – QIP of Rs 50 Cr. • June 2018 – CRISIL upgraded credit rating • Aug 2018 – Change in Statutory Auditors to M/s B. S. R. & Co. LLP • Feb 2019 – Fortified Board of Directors -one Independent Woman Director and one Additional Director appointed • Sept 2019 – Replacement of electric arc furnace and other related activities • Nov 2019 – Signs Technical Assistance Agreement with Aichi Steel Corporation (ASC) - ▪ Appointed Additional Director as representative of Aichi Steel Corporation • July 2021 – Received environmental clearance for capacity expansion • Mar 2023 – Joins hands with ASC to start mass production • May 2023 – Issued Bonus Share in ratio 1:1 • Apr 2025 - Approved Rs. 2000 cr. in greenfield steel plant & • Jun 2025 – Aichi Steel Corporation raises its equity stake to 24.90% • Dec 2025 - Approved a ₹475 crore investment for a new steel forging and machining facility in Ludhiana • April 2025 – Commissioned New Kocks Block in Rolling Mill • Mar 2026 – Commissioned new reheating furnace expanding capacity to 2.7L MTPA • July 2026 – Foundation laid for ₹1,116 crore Forging unit at Ludhiana with ASC …. Transforming into one of India’s leading steel bar producers
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Strong Experienced Board of Directors Mr. Sachit Jain Chairman & MD • B. Tech (Electrical) - IIT, New Delhi, MBA (Gold medallist) - IIM, Ahmedabad and Owner/President Management Program – Harvard - Experience of over 36 years in Textile & Steel • Former Chairman of CII, Northern Region Mrs. Suchita Jain Non-Executive Director • Master’s degree in Commerce from Punjab University, Chandigarh • Over 33 years of rich experience in textile industry • Representative of Vardhman Group Mr. Rajendar Kumar Rewari Executive Director • B. Sc. from Punjabi University, Patiala and LLB & Post Graduation diploma from Kurukshetra University • More than 43 years of experience in manufacturing sector • More than 10 years of experience as Managing Director of Morarjee Textiles Limited • He has long track record at Vardhman Group in various key positions Mr. Rajinder Kumar Jain Non-Executive Director • Chartered Mechanical Engineer from Institute of Mechanical Engineers London • Retired as General Manager from Indian Railways after 35 years of service Mrs. Soumya Jain Executive Director • Graduation in B.Sc. Economics from University of Bristol, UK • MBA in family business from Indian School of Business • 5 years of exp. in Vardhman Textiles in various fields like production, marketing, exports, HR, R&D, Capital investments, etc. • Joined Vardhman Steel in 2021 with involvement in various departments Mr. Toshio Ito Non-Executive Non-Independent Director • Mechanical Engineer, graduated from Nagoya University, Japan • Managing Executive Officer at Aichi Steel Corporation since 2020 • Experience as Plant Manager at steelmaking, rolling mill and forging plants of Aichi Steel Mr. Randhir Singh Kalsi Independent Director • Mechanical Engineer, from Delhi College of Engineering • Worked for 40+ years with Maruti Suzuki India Ltd. across different functions • Area of expertise includes – Leadership & Change Management, Business Strategy & Innovation, Startup & New Business Ventures, Aftermarket Parts & Logistics, Operations Management and Digital Transformation Mr. Iwao Shimamoto Additional Director (Non-Executive Non-Independent) • Bachelor’s degree of Arts in Economics from Kyoto University, Japan • Extensive experience across procurement, human resources and corporate planning at Toyota Motor Corporation and Aichi Steel Corporation. • Overseas management experience in North America and China, including serving as Vice President and General Manager of Purchasing at Tianjin FAW Toyota. • Currently serves as Management Executive & President of Forging Company at ASC Contd...
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Strong Experienced Board of Directors Mr. Hemant Bharat Ram Independent Director • Master's degree in Industrial Administration (MBA) & Bachelor’s degree in Mathematics and Computer Science, both from Carnegie Mellon University, Pittsburgh, PA, USA • Started his career in 1991 with DCM Data Systems & thereafter he looked after various businesses of DCM Group • Managing Director of DCM Nouvelle Limited since 2019 & prior to that led the Textile Business of DCM Limited for over 9 years Mr. Suman Chatterjee Independent Director • Graduation in B.Sc. Economics from Presidency College, Kolkata • Holds post graduate diploma in Business Management from Indian Institute of Management, Ahmedabad • Over 30 years of experience in Multiple Leadership roles - worked in sales & marketing and has led businesses for Levi Strauss and SC Johnson in India Mrs. Vidya Shah Independent Director Mr. Rakesh Jain Independent Director • Ph.D. in Polymers from University of Akron • Worked in Advanced Technology Group at GE Electro -materials Division (EMD) in Coshocton, OH,USA & Aditya Birla Group (ABG) as MD of Indo Gulf Fertilizers Ltd • MBA from Indian Institute of Management, Ahmedabad • 11 years of career in investment banking - ICICI, Peregrine and NM Rothschild • Non-Executive Director of Edelweiss Financial Services Ltd. and Executive Chairperson of EdelGive Foundation • Recognised as India’s Top 100 Women in Finance by Association of International Wealth Management of India (AIWMI) 2019 Mr. Dinkar Gupta Independent Director • Commerce graduate with a Master’s degree in Police Administration • 1987 batch IPS officer from the Punjab cadre has over 30 years of experience in national security • Served as Director General of the National Investigation Agency (NIA) and as Director General of Police (DGP), Punjab, leading major counter- terrorism and law enforcement initiatives Mr. Nishant Arya Independent Director • Vice Chairman & MD of global Indian conglomerate JBM Group and Chairman of Linde Wiemann GmbH, Germany. • Represents India at key global platforms including COP27–29, World Economic Forum–Davos, actively promoting sustainable mobility and clean energy in collaboration with global institutions such as ADB, AIIB, IFC, and EDB Singapore.
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Business Overview 03
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Wide Range of Rolled & Bright Bar Products Hot Rolled Bars ▪ Diameter Size : Increased from 25- 70 MM in 2012 to 16-120 MM ▪ Size : 14.66 to 78 mm (Peeled), 18 to 55.25 mm (Drawn) Bright Bars
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Diverse Applications of Our Products Axle Gears Center Velocity Joint Crankshaft Differential Gears CamshaftConnecting RodPistonKnuckle SpindleStabilizer Bar Transmission Gear Drive-Shaft Tie-Rod Bearings Companion-flange Axle Shaft Piston-Pin Steering-Yoke Steering Shaft
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State of Art Manufacturing Facilities Rolling Mill Annual Capacity : 2,70,000 TPA • Rolling Mill installed in 2013-14 • Mill with complete automation • 33 TPH “Walking” Hearth Type Reheating Furnace • Reversible 2 high shift able stand with Bar Manipulator • 10 Continuous Stands in Horizontal & Vertical configuration • Online Dimensional Measurements • Rack Type Cooling bed designed for better straightness & Hardness levels • Abrasive Cutter Bright Bars Annual Capacity : 48,000 TPA ▪ Bar Peeling & Centreless Grinding • Straightening • Peeling • Cold drawing • Polishing • Centreless grinding • Full length bar Magnetic Particle Inspection • High Speed Band Saws • Circular Saw - Cut to Length Steel Steel Melting Shop Annual Capacity : 3,00,000 TPA • 35 MT Ultra High Power (UHP) Eccentric Bottom Tapping (EBT Type) • Fully automated continuous feeding system for DRI & other raw materials • Automatic lance manipulator for oxygen and coke injection • Electrode regulation system - Melt Controller • CELOX for active oxygen measurement (Electronite)
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Process Flow 35 TON ELECTRIC ARC FURNACE
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Steel Melt Shop Electric Arc Furnace Two Ladle Refining Furnace Vacuum DegassingContinuous Casting Machine
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Rolling Mill & Bright Bars Rolling Mill Re-Heating Furnace Spherodizing & Annealing Machines Bright Bar Shop
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Automatic Line of Bar Inspection NDT Line Straightening Straightness : 2mm / meter Chamfering Bar ends free from Burr MFLT Acceptance Criteria: 0.2x10mm Shot Blasting UST Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm
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Best in Class R&D Facility ▪ Spectrometer: ARL 4460:1454 for Chemical Analysis. Can check 32 different elements ▪ CS - 230 : Analyzer for Carbon & Sulfur content in steel ▪ LECO gas analyzer: TC 600 H2, N2, O2 Analyzer ▪ Mobile Spectro and XRF for Mix up Testing of Bars ▪ Mechanical and Metallurgical Testing Lab: ▪ Rockwell Hardness Tester ▪ Impact Testing Machine (Material Toughness) ▪ Metallurgical Microscope with Image Analyzer: ▪ Carl Zeis microscope with maximum magnification of 1000x ▪ Olympus microscope with maximum magnification of 2000x ▪ RADLAB-1 GAMMA RAY Spectrometer: ▪ For Testing Steel Samples for Radiological Content ▪ Can identify different types of Isotopes present in Steel Sample and show Results in Bq/gm ▪ Samples Radiological content can be certified with 300 Second scan in RadLab ''Well‘’ ▪ XRF Spectrometer: Higher range & All input/ output material can be checked and chemically analysed ▪ Scanning Electron Microscopy and Energy Dispersive X-ray Spectroscopy (SEM-EDS): For material surface analysis, material rejection, contaminant identification, solder joint analysis etc. ▪ Digital Optical Microscope With Elemental Analyzer: For observation, analysis and elemental analysis, allowing the status and composition of the target to be checked from its outer appearance …ensuring highest levels of quality and compliance
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Strategically Located Warehousing Facilities One Owned Warehouse ▪ Bilaspur Haryana Five Leased Warehouses in India ▪ Bangalore ▪ Chennai ▪ Rudrapur ▪ Pune ▪ Aurangabad Bilaspur Bangalore Chennai Rudrapur Pune Aurangabad
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Key Strengths State of Art Manufacturing Facilities and advanced R&D Capabilities ▪ Well equipped with latest upgraded Technology Machines Diversified Product offerings ▪ Manufactures diverse range of products with wide applications across sectors ▪ Further expanding product offerings to increase wallet share with existing customers and adding new clients Rich Management Experience ▪ Dynamic & rich experience in special steel sector ▪ Diverse team with right mix of operational & technical expertise along with dedicated and skilled employee base Quality Standards & Assurance ▪ Adherence to quality standards across all stages of manufacturing ▪ Checked for dimensional accuracy & temper at every stage ▪ Well equipped modern testing facilities to check for physical, mechanical & chemical properties Brand Image ▪ Continuous brand building exercise by providing excellent services to satisfy our customers
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200+ Reputed & Long Term Customers.... HCL/LCVs Cars Auto Components Tractors Off Highway Vehicles Two Wheelers
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....Across Globe With Customer Base *Includes exports to Aichi Forge, Thailand, through its trading arm in India 8%* of FY26 sales from Exports
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Way Ahead 04
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Beyond Automotive - Building a Supermarket of Special Steels A decade-long pivot from single-sector dependence to a diversified specialty steel franchise — enabled by new casting technology and phased entry into non-automotive sectors. TRANSFORMATION JOURNEY STAGE 1 · TODAY (FY26) Automotive-Focused Steel ~100% automotive revenue 270k T rolled capacity · EAF + continuous casting route 300 KT of Melting and Rolling capacity, planning to increase it to 360 KT ↓ Ingot casting pilot + greenfield build STAGE 2 · FY27–FY30 ENABLERS Capacity + Technology Unlock Ingot casting pilot (higher-alloy, larger diameter) 500–600k TPA greenfield plant, commissioning FY30 Aichi Steel technology transfer & anchor demand ↓ Phased sector approvals, FY30–35 STAGE 3 · FY35 TARGET Diversified Specialty Portfolio ~70% auto / 25–30% non-auto revenue mix ~1M T steel capacity · entry across 8 target sectors STRATEGIC FINANCIAL GUARDRAILS ~₹2,600 Cr Committed capex, FY26–30 (steel + forging, balanced debt/equity) ≤ 0.75x Peak debt / equity — discipline preserved through the cycle Portfolio Mix — Revenue by End-Market TODAY 100% Automotive ~FY35 TARGET ~70% Auto 25–30% Non-Auto India specialty-steel mix today is ~40% non-auto (industry est.) — VSSL is narrowing the gap. Target Non-Automotive Sectors ● NEAR-TO-MEDIUM TERM Railways Oil & Gas Bearing Windmill/ Ship Shafts ■ LONGER TERM · via dedicated JV partner Defence Aerospace Nuclear Tool & Die Steel Import Substitution Opportunity ~1M T Specialty steel imports vs ~6M T domestic demand ₹1,000 Cr Tool & die steel imports, per annum 5–7 yrs To meaningful P&L contribution from non-auto
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Forging - The Next Value-Add Engine Forward integration from steel bars to finished automotive components, in partnership with Aichi Steel — a scalable, multi-line growth engine. FORWARD INTEGRATION VALUE CHAIN Scrap Sourcing EAF route → Melting & Rolling Existing capacity → Steel Bar Current business → Forging Line 1 Ring gears · new → OEMs Aichi network FORWARD INTEGRATION · commissioning Q3 FY28 K E Y M E T R I C S · L I N E 1 · S C A L I N G T O L I N E S 2 & 3 ₹475 Cr Budgeted capex Line 1 capex ~₹300 Cr Revenue potential per line, at steady-state 15–20% EBITDA margin guided range, forging Lines 2 & 3 Planned FY29–32 at lower incremental capex Customer Relationship — Before vs After BEFORE · STEEL ONLY VSSL sells steel bar → Tier-1 forges → OEM VSSL → Tier-1 Forger → OEM AFTER · STEEL + FORGED COMPONENT Bundled offering → deeper wallet share, direct to OEM VSSL (Steel + Forging) → OEM (direct) Margin uplift · upsell opportunity & incremental wallet share from exciting customers POSITIONING FOR LONG -TERM GROWTH ₹8–11k → ₹9–12k Blended EBITDA / tonne re-rating, within 2 years 11.3% → 24.9% Aichi stake — deeper technology & Toyota-linked demand 4–5 lines by FY35 Scale-up beyond Line 1, bundled franchise
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Investing in Our Real Assets Centre for Creative Leadership ‘Manav Vikas Kendra’ Leadership Training Program ▪ CCL - US based Organisation – offers leadership programs across 160 countries, FT top10 in executive education with 500K alumni over 50 years ▪ Customized leadership training for 12 senior management ▪ Training programs – functional, attitudinal, skill development, quality – across all levels of employees ▪ Specialized & customized programs ▪ Special Training Program for Senior Management ▪ Mr. Rohan Singal, Leadership Coach from Rejoiss Learning LLP undertook a personal coaching assignment. ▪ Individual Coaching for Self Development to build a synergy in Team working. ▪ To Build up individual Leadership capability especially in view of forthcoming Greenfield expansions and challenges.
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ESG – Environmental: Decarbonising ahead of Schedule 0.45 – 0.48 CARBON INTENSITY (tCO₂/tonne) 5-star DNV-verified rating — ~1/4 of govt green steel norm (2.2) and ~1/6 of competitor average (3.0+) 40 MW AC SOLAR PLANT, LIVE THIS YEAR 9 Cr units of clean energy/year (supplying ~40% of total energy needs); reducing carbon intensity from 0.73 to a range of 0.45 to 0.48 & energy expense per tonne 2050 NET-ZERO TARGET 20 years ahead of India's 2070 goal; <0.5 carbon intensity threshold already met in FY26 with the commissioning of solar power plant Carbon Intensity vs. Benchmarks (tCO₂/tonne) Major Competitors 3.00+ Govt. Green Steel Norm 2.20 VSSL (FY2025-26) 0.73 VSSL (Post-Solar) 0.45 – 0.48 Supporting Levers ▪ Circular Economy – Closed-loop scrap tie-up with Maruti Suzuki operational since Sep’25 — ensures high- quality scrap, reduces logistics waste and deepens supply-chain integration ▪ Cleaner Fuel – Fully transitioned from furnace oil to PNG, with a dedicated pipeline laid by GAIL. Additionally it contributes towards reduction in truck-based fuel transport and Scope 3 emissions from logistics chain ▪ Process Efficiency – Kocks block & Walking-beam furnace projects commissioned - tighter dimensional tolerances reducing rework & material rejection (Kocks block), while billet length increases from 4.2m to 5.2m improving yield and reducing burning losses (Walking-beam furnace) ▪ Water & Afforestation – Consumption down despite higher output; 24.2 acres of land have been converted to dense green cover under Miyawaki plantation & 15–20 acres of more land under development. Market Access: Low-carbon footprint strengthens positioning for India’s green-steel procurement and EU CBAM-driven opportunities in European automotive supply chains
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ESG – Social (1/2): Five Flagship CSR Programmes Five flagship CSR programmes, each aligned with the UNSDG and National Development Priorities run through by an internal CSR team and overseen by the Board-level CSR Committee Nari Shakti - Women Empowerment & Livelihood Generation ▪ Vocational Training: Empowering women across 3 centres (Ludhiana, Kapurthala, and Sangrur), training 70 women per year at each centre ▪ Digital Literacy Initiatives: Training 1,364 women in FY26 Disha - Education & Child Development ▪ Digital Classrooms: Bridging education gaps across 7 schools with 3 new e-classrooms established ▪ Student Support: 4,551 students reached and 75 school kits distributed in FY26 Swasth Samaj - Healthcare Access & Well-being ▪ Medical Services & Treatments: 1,453 artificial limbs distributed, 100 cataract surgeries supported, and 25 free deliveries facilitated at DMC Hospital ▪ Camps & Infrastructure: 8 medical camps conducted and 6 RO systems installed Prakriti - Environmental Conservation & Biodiversity Restoration ▪ Environmental Restoration: Driving green initiatives through 11 Miyawaki forests, developed and restored 2 parks ▪ Tree Plantation: 1 lakh+ trees planted in FY26, bringing total cumulative plantation to 2.18 lakh trees Khel Protsahan - Sports Promotion & Youth Development ▪ Sports & Youth Empowerment: Promoting inclusive grassroots sports initiatives across schools ▪ Student Athlete Support: Supporting ~450 child athletes through VSSL's sports promotion programmes FY2025-26 & Cumulative Impact (Since Inception) at a Glance Initiatives FY2025-26 Cumulative (Since Inception) Trees Planted 1 Lakh+ 2.18 Lakh Women Trained – Digital Literacy 1,364 2,618 Students Supported with Education 49 75 Artificial Limbs Provided 1,453 5,128 Cataract Surgeries Supported 100 300
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ESG – Social (2/2) : Community Welfare & Cumulative Impact Beyond the five flagship programmes, VSSL directs resources to community welfare needs that fall outside the mandates of its standing projects Armed Forces Welfare ▪ Armed Forces Support: Blankets provided to Indian Army jawans stationed in high-altitude areas ▪ Veteran Mobility: E-vehicle donation programme implemented to assist veteran senior citizens with commuting to health centres Disaster Management ▪ Financial Support: Provided ₹10 lakh in financial assistance to the Ludhiana District Administration for flood relief operations ▪ Volunteer Efforts: VSSL employees volunteered for nearly a month to strengthen and restore Sarsal Bandh, contributing actively to flood protection and community resilience Art & Culture ▪ Heritage & Culture Preservation: Extended financial support to Art Century India for the preservation of national heritage and culture ▪ Cultural Events: Supported the Saras Mela cultural event at Punjab Agricultural University, Ludhiana ESG – Governance: Independent, Transparent, System-Led ▪ Board Composition – Led by strong Board consisting of 14 directors - 7 independent directors & 7 non independent directors. The Board includes 3-4 women directors, out of which one is independent director. ▪ Leadership – Mr. Sachit Jain holds the role of Chairman and Managing Director ▪ Strategic Partnership Representation – Aichi Steel Corporation Japan holds 2 seats on the Board, providing direct oversight of operational standards from within the partnership. Mr. Iwao Shimamoto and Mr. Toshio Ito both holding positions as a Non-Executive Non-Independent Director. ▪ Statutory Auditors – B S R & Co LLP, affiliate of KPMG, Chartered Accountants are our Statutory Auditors ▪ Co Sourced partner – EY are co-sourced partners for conducting Internal audit.
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Thank You ! VSSL VSSL IN VARM.BO534392 For further information, please contact Company Vardhman Special Steels Limited Mr. Sanjeev Singla sanjeevsingla@vardhman.com www.vardhmansteel.com Investor Relations Advisors Adfactors PR Pvt. Ltd. Mrs. Disha Shah +91 9699060134 disha.shah@adfactorsp r .com www.adfactorspr .com Mr. Mohit Upadhyay +91 9664235903 mohit.upadhyay@adfactorspr . com www.adfactorspr .com Mr. Rahul Viswanathan +91 7358272299 rahul.viswanathan @adfactorspr .com