Vedanta Iron & Steel Ltd
Vedanta Iron & Steel Ltd
Metals & MiningKey Fundamentals
MicrocapIron & SteelMetals & MiningInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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24 extracted metrics + investor summaries across FY25–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
Technical Indicators
Key Insights
Weaknesses
1- Company has low interest coverage ratio.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoVedanta Iron & Steel Ltd (VISL) is a micro-cap company with a market capitalization of ₹14,684 Cr operating in the Metals & Mining sector. The company is currently loss-making with a negative P/E of -4.8, trades at a price-to-book ratio of 36.25, pays no dividend, and has a low interest coverage ratio indicating debt-servicing stress.
- Operates in the Metals & Mining sector which benefits from India's infrastructure push and rising steel demand driven by government capex spending
- Part of the Vedanta group ecosystem which provides potential access to raw material supply chains and operational synergies
- Market cap of ₹14,684 Cr provides some scale relative to smaller peers in the iron and steel space
- Negative P/E of -4.8 implies losses are relatively contained compared to the current market valuation, suggesting the market prices in a turnaround expectation
- India's crude steel production target of 300 MT by 2030 from ~140 MT currently provides a structural demand tailwind for domestic steel producers
- Zero dividend yield at present preserves cash for reinvestment into capacity building or debt reduction during the loss-making phase
- Company is loss-making with a negative P/E ratio of -4.8, indicating no current earnings to support the valuation
- Price-to-book ratio of 36.25 is extremely elevated, suggesting the stock trades at a massive premium to its book value with no profitability to justify it
- Low interest coverage ratio flagged as a known concern, indicating the company struggles to service its debt from operating profits
- ROE and ROCE data are unavailable (null), suggesting either inconsistent profitability or insufficient reported data for analysis
- Zero dividend yield with no history of shareholder returns through dividends
- Debt-to-equity ratio is unavailable (null), making it difficult to assess leverage risk, which is particularly concerning given the low interest coverage
- No reported EPS data available, preventing investors from assessing per-share earnings trajectory
- Growth metrics including compounded sales, profit, and stock CAGR are all unreported across 1, 3, 5, and 10-year periods, indicating a lack of consistent operating history or transparency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 8h ago- ₹51 cr GST notice on subsidiary Aug 8
ESL Steel received ₹51.23 crore GST intimation for alleged excess ITC availment on imports from FY21 to FY23. Company claims no material financial impact.
- 5 RoC show cause notices Jul 30
ESL Steel received 5 Show Cause Notices from RoC Ranchi for alleged non-compliances under Companies Act, 2013, including a ₹5 lakh penalty for failing to disclose director remuneration ratios in FY2019.
- 56% promoter shares encumbered Jul 27
Vedanta Resources disclosed encumbrance over 56.38% of VISL shares held by subsidiaries under a US$2.25 billion facility agreement dated July 20, 2026.
- Q1FY27 profit surges to ₹121 cr Jul 29
Consolidated net profit of ₹121 crore in Q1FY27, a sharp turnaround from ₹145 crore loss in the prior year period, driven by higher revenue and lower finance costs.
- ESOP and ESPP plans adopted Jul 29
Board approved new employee stock option and purchase plans covering up to 5% of paid-up capital, subject to shareholder approval.
- Q1FY27 earnings call and transcript Jul 30
Earnings conference call held on July 30, 2026 with transcript released on Aug 4. Results discussion covered unaudited consolidated and standalone financials for quarter ended June 30, 2026.
TL;DR: Vedanta Iron & Steel delivered a strong Q1FY27 turnaround with ₹121 cr profit vs ₹145 cr loss YoY, signaling operational improvement and lower finance costs. Key risks include regulatory overhang from multiple RoC notices at subsidiary ESL Steel and high promoter share encumbrance at 56.38% under a $2.25 bn facility. The GST notice of ₹51 cr adds to compliance concerns though management downplays impact. Trend is improving on earnings but governance and balance sheet risks warrant monitoring.
Quarterly Results
| Jun 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|
| Sales | 3,095 | 3,863 | 3,662 |
| Expenses | 2,768 | 3,310 | 3,154 |
| Operating Profit | 327 | 553 | 508 |
| OPM % | 11% | 14% | 14% |
| Other Income | 267 | -1,289 | 99 |
| Interest | 461 | 440 | 207 |
| Depreciation | 199 | 212 | 225 |
| PBT | -66 | -1,388 | 175 |
| Tax % | 120% | 40% | 31% |
| Net Profit | -145 | -1,939 | 121 |
| EPS in Rs | -14,200 | -1,91,300 | 0.31 |
Profit & Loss
| Mar 2026 | |
|---|---|
| Sales | 13,587 |
| Expenses | 12,460 |
| Operating Profit | 1,127 |
| OPM % | 8% |
| Other Income | -672 |
| Interest | 1,816 |
| Depreciation | 801 |
| PBT | -2,162 |
| Tax % | 36% |
| Net Profit | -2,935 |
| EPS in Rs | -2,88,200 |
| Div. Payout % | 0% |
Balance Sheet
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Equity Capital | 0.01 | — |
| Reserves | 0 | — |
| Borrowings | 0 | — |
| Other Liabilities | 0 | — |
| Total Liabilities | 0 | — |
| Fixed Assets | 0 | — |
| CWIP | 0 | — |
| Investments | 0 | — |
| Other Assets | 0 | — |
| Total Assets | 0 | — |
Cash Flow
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Operating | 0 | 0 |
| Investing | 0 | 0 |
| Financing | 0 | 0 |
| Net Cash Flow | 0 | 0 |
| Free Cash Flow | 0 | 0 |
| CFO/OP | 200 | 0 |