Vedanta Iron & Steel Ltd
Vedanta Iron & Steel Ltd
Metals & MiningKey Fundamentals
SmallcapIron & 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
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Technical Indicators
Key Insights
Weaknesses
1- Company has low interest coverage ratio.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 14d agoVedanta Iron & Steel Ltd (VISL) is a recently demerged entity listed on June 15, 2026 at ₹20 per share with an initial market cap of ~₹7,821 crore. The company reported Q1 FY27 revenue of ₹3,662 crore (up 18% YoY) and swung to a net profit of ₹122 crore from a ₹145 crore loss in Q1 FY26, while trading at a price-to-book of 30.81x with current capacity of 4 MTPA and an ambitious expansion target of 15 MTPA.
- Revenue grew 18.3% YoY in Q1 FY27 to ₹3,662 crore from ₹3,095 crore, demonstrating solid top-line momentum post-demerger
- Swung from a net loss of ₹145 crore in Q1 FY26 to a net profit of ₹122 crore in Q1 FY27, a ₹267 crore improvement in absolute terms
- EBITDA jumped 54% YoY to ₹515 crore in Q1 FY27, indicating significant operating leverage improvement
- Ambitious capacity expansion from current 4 MTPA to 15 MTPA (275% increase), aligned with India's National Steel Policy target of 300 MTPA by 2031
- Fully integrated iron and steel value chain with captive iron ore resources (Sesa Goa mining operations), providing raw material cost advantage
- Part of the Vedanta Group's $20 billion group-wide capex plan with independent capital allocation post-demerger enabling focused investment
- Achieved highest-ever pig iron output of 291 KT in Q1 FY26, showing production efficiency gains at existing facilities
- Stock rallied ~116% within 14 trading sessions from listing price of ₹20, reflecting strong market confidence in the standalone entity's prospects
- Price-to-book ratio of 30.81x is extremely elevated for a metals & mining company, suggesting the stock is priced far above asset value
- PE ratio is effectively 0 or not meaningful, indicating the company has negligible or no trailing twelve-month earnings on an annualized basis
- Zero dividend yield offers no income protection to shareholders during potential downturns in steel cycle
- Revenue declined 5% sequentially from ₹3,803 crore in Q4 FY26 to ₹3,612 crore in Q1 FY27, with EBITDA also falling 7% QoQ to ₹458 crore
- Current operating capacity of only 4 MTPA (with design capacity of 2.5 MTPA at ESL Bokaro) makes it a mid-tier player in a sector dominated by larger producers like Tata Steel and JSW
- Newly listed entity with only one quarter of independent financial track record since October 2023 incorporation, making fundamental analysis difficult
- Market cap of ~₹12,071 crore against limited profitability history implies investors are paying a steep premium for future growth that requires significant execution over multiple years
- The 15 MTPA expansion target requires massive capital expenditure and execution in a cyclical commodity sector where steel prices can be volatile
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 4h ago- ₹51 cr GST notice on subsidiary Aug 8
ESL Steel received a ₹51.23 crore GST intimation for alleged excess ITC availment on imports from FY21 to FY23. Company claims no material financial impact.
- Multiple RoC non-compliance notices Jul 30
ESL Steel received 5 Show Cause Notices from RoC Ranchi for alleged non-compliances under the Companies Act, 2013, plus a separate ₹5 lakh penalty notice on Aug 7 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 (2.2 billion shares) held by promoter subsidiaries, linked to facility agreements totalling up to US$2.25 billion and $1.75 billion in bonds.
- Q1FY27 profit surges to ₹121 cr Jul 29
Vedanta Iron & Steel reported consolidated net profit of ₹121 crore in Q1FY27, a sharp turnaround from a ₹145 crore loss in Q1FY26, driven by higher revenue and lower finance costs.
- ESOP and ESPP plans approved Jul 29
Board approved new employee stock option and purchase plans covering up to 5% of paid-up capital, subject to shareholder approval, signalling confidence in long-term value creation.
- Q1FY27 earnings call disclosed Aug 4
Company released the transcript and audio recording of its Q1FY27 earnings conference call held on July 30, 2026, in compliance with SEBI Listing Regulations.
- Q1FY27 board meeting scheduled Jul 26
Board meeting was scheduled for July 29, 2026 to approve unaudited financial results for Q1 ended June 30, 2026.
TL;DR: VISL delivered a strong Q1FY27 turnaround with ₹121 crore profit versus a ₹145 crore loss a year ago, reflecting improved operations and lower finance costs. However, governance risks loom with multiple RoC non-compliance notices at subsidiary ESL Steel and a ₹51 crore GST demand. The 56.38% encumbrance on promoter shares tied to Vedanta Resources' debt facilities remains a structural overhang. Earnings trajectory is improving but parent-level leverage and subsidiary compliance issues warrant close 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 |