How has been the historical performance of Vardhman Special?

Nov 25 2025 10:50 PM IST

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Vardhman Special has shown steady growth in net sales and profit, with net sales increasing to 1,764.41 crore in FY 2025 from 1,661.36 crore in FY 2024, and profit after tax rising to 93.09 crore from 91.63 crore. Despite rising raw material costs, the company maintained a positive trend in revenue and profitability.

Revenue and Profitability Trends

For the fiscal year ending March 2025, Vardhman Special reported consolidated net sales of ₹1,764.41 crores, up from ₹1,661.36 crores in the previous year. This represents a growth of approximately 6.2%, signalling a positive top-line momentum. The total operating income mirrored this increase, as there was no other operating income reported in either year.

On the cost front, raw material expenses rose to ₹1,093.68 crores from ₹1,030.62 crores, reflecting the higher sales volume and possibly inflationary pressures. Employee costs and power expenses also increased modestly, consistent with operational scaling. Total expenditure excluding depreciation increased by around 6.4% to ₹1,616.37 crores.

Operating profit before other income (PBDIT) edged up to ₹148.04 crores from ₹142.44 crores, though the operating profit margin slightly contracted to 8.39% from 8.57%. Including other income, operating profit stood at ₹177.15 crores, a marginal increase over the previous year’s ₹172.26 crores.

Bottom Line and Earnings

Interest expenses remained stable at ₹18.63 crores, while depreciation increased slightly to ₹33.47 crores. Consequently, profit before tax rose to ₹125.06 crores from ₹122.86 crores. After accounting for taxes of ₹31.97 crores, the company posted a consolidated net profit of ₹93.09 crores, up from ₹91.63 crores the previous year. This translated into a modest improvement in earnings per share (EPS) to ₹11.39 from ₹11.25.

Despite the growth in absolute profits, the profit after tax margin saw a slight dip to 5.28% from 5.52%, reflecting the impact of rising costs on overall profitability. The company reported no extraordinary or exceptional items in either year, indicating stable core operations.

Balance Sheet and Financial Position

Vardhman Special’s consolidated balance sheet reveals strengthening shareholder funds, which increased to ₹797.92 crores from ₹719.35 crores. This was supported by a rise in reserves to ₹714.27 crores, underscoring retained earnings accumulation. The equity capital remained largely unchanged at around ₹81.73 crores.

Long-term borrowings were significantly reduced to ₹3.30 crores from ₹14.10 crores, reflecting a strategic deleveraging effort. However, short-term borrowings increased to ₹116.43 crores from ₹68.84 crores, which may indicate a shift in working capital financing. Total liabilities rose to ₹1,135.92 crores from ₹1,039.67 crores, in line with the company’s expanded operations.

On the asset side, net block decreased slightly to ₹308.31 crores, while capital work in progress surged to ₹117.03 crores from ₹0.99 crores, signalling ongoing investments in fixed assets. Non-current assets increased to ₹474.76 crores, supported by new investments and advances. Current assets remained stable at ₹661.15 crores.

Cash Flow and Liquidity

Cash flow from operating activities declined to ₹126 crores from ₹142 crores, reflecting changes in working capital and operational cash generation. Investing activities saw a significant increase in outflows to ₹126 crores, compared to ₹50 crores the previous year, consistent with the rise in capital work in progress and asset investments.

Financing activities generated a small inflow of ₹3 crores, a reversal from the prior year’s outflow of ₹94 crores. The net cash inflow was ₹3 crores, improving from a marginal outflow of ₹1 crore. Closing cash and cash equivalents rose to ₹10 crores from ₹7 crores, indicating a modest improvement in liquidity.

Overall, Vardhman Special’s historical performance over the last fiscal year reflects steady growth in revenue and profitability, prudent balance sheet management, and ongoing capital expenditure to support future expansion. While margins have slightly contracted, the company’s financial health remains robust, supported by strong reserves and controlled debt levels.

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