Analysts/Institutional Investor Meet/Con. Call Updates

@) | Vardhman VARDHMAN SPECIAL STEELS LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD Vardhman LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601048 E: secretarial.lud@vardhman.com Ref. VSSL:SCY:NOV:2026-27 Dated: 02-Nov-2026 BSE Limited, Nat ional Stock Exchange of India Ltd, New Trading Ring, Exchange Plaza, Bandra-Kurla Complex, Rotunda Building, P.J. Towers, Bandra (East), Dalal Street, MUMBAI-400001. MUMBAI-400 051 Scrip Code: 534392 Scrip Code: VSSL SUB: TRANSCRIPT OF EARNINGS CONFERENCE CALL OF VARDHMAN SPECIAL STEELS LIMITED — Q2 FY27 Sir, Pursuant to the provisions of Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith transcript of the earnings conference call of the Company held on 28'" October, 2026 to discuss the Company’s business and financial performance for Q2 FY27. Kindly take the same on record. Thanking you, Yours faithfully, FOR VARDHMAN SPECIAL STEELS LIMITED (SONAM DHINGRA) COMPANY SECRETARY YARNS | FABRICS | THREADS | GARMENTS | FIBRES | STEELS CIN: L27100PB2010PLC033930 WWW.VARDH MANSTEEL.COM] WHIW- VARDHMAN » loM “Vardhman Special Steels Limited Q2 FY27 Earnings Conference Call” October 28, 2026 MANAGEMENT: MR. SACHIT JAIN – CHAIRMAN AND MANAGING DIRECTOR – VARDHMAN SPECIAL STEELS LIMITED MR. SANJEEV SINGLA – CHIEF FINANCIAL OFFICER – VARDHMAN SPECIAL STEELS LIMITED MS. SOUMYA JAIN – EXECUTIVE DIRECTOR – VARDHMAN SPECIAL STEELS LIMITED MS. SONAM DHINGRA – COMPANY SECRETARY – VARDHMAN SPECIAL STEELS LIMITED ADFACTORS – INVESTOR RELATIONS Page 1 of 15 Vardhman Special Steels Limited October 28, 2026 MODERATOR: MR. PRATEEK SINGH – IIFL CAPITAL Moderator: Ladies and gentlemen, good day, and welcome to Vardhman Special Steels' Q2 FY27 Earnings Conference Call hosted by IIFL Capital. As a reminder, all participant lines will be in the listen- only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Singh from IIFL Capital. Thank you, and over to you, sir. Prateek Singh: Thanks, Shauryaa. Good morning, and welcome, everybody. On behalf of IIFL Capital, we invite you to Vardhman Special Steels' 2Q FY27 Earnings Conference Call. From the management, we have Mr. Sachit Jain, CMD; Mr. Sanjeev Singla, CFO; Mr. R.K. Rewari, Executive Director; and Ms. Soumya Jain, Executive Director. Before we begin, note that this conference call may contain certain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. So, without any further ado, I will now hand over the call to Mr. Sachit Jain for opening remarks. Over to you, sir. Sachit Jain: Thank you. Thank you so much. And in addition to the team mentioned, we have Sonam, our Company Secretary with us, and we also have the Adfactors team with us, our Investor Relations. And Mr. Rewari had to step out, so he has left the meeting. He's not there in this call. So, we've had a good quarter last one. And one of the big highlights of this quarter has been the foundation stone of a forging plant was laid by the Honorable Chief Minister of Punjab, Mr. Bhagwant Mann, and that happened in July end this year. And in this quarter, we've had record sales. Demand was strong. And partly demand has been strong because of the GST cuts, which happened last year on 2-wheelers as well as the smaller vehicles as well as SUV sales have been good and the other sales also have been good. So, there has been good demand. I also we are getting the feeling that from the non-automotive space also demand has increased, which has started affecting various other of our competitors. So overall material supply for automotive segment was tighter. And there were 1 or 2 shutdowns, unscheduled shutdowns, from one of the large companies. That led to also a slight shortage in the market, and therefore the pull. So, the demand supply imbalance, we got good price increases in the last 2 quarters which has led to good profits. Most of these have had settled the prices for Q2 and we are talking about price settlements for Q3. Not all have settled for Q2, so that's still ongoing. Page 2 of 15 Vardhman Special Steels Limited October 28, 2026 In addition to that, we have work going on in our new steel plant. We have finalized the equipment for the plant part. Land has been finalized for the SMS and we should be filing for environmental approval within December this year. And we are on track as of now to complete the project by September of '29 and stabilization by March of '30. In addition to that, the solar plant has been running well. And we are now expanding the solar plant by another 22.5 megawatts. 20-megawatt for this will be for the current plant and 2.5- megawatt will be for the NDT line, which is being set up in the forging plant. For the forging plant, there will be solar power coming in by the time it starts reaching better utilization. The forging plant is expected to come up by March of '28. And then, of course, it will take some time to fill up the capacity. A slight change or a thought process is happening on the financing structure of the new plant. We were earlier looking at debt equity for the company was 0.5:1, which would have been at max 0.75:1. More and more as we were talking to some financial experts and some well-wishers of the company, advisers. We are now coming around with a conclusion, we are diluting a bit more than required. And therefore, we may look at a 1:1 debt equity. And therefore, the debt component will become a bit higher and the equity raising part will be a bit lower. For the equity part, we'll be doing a rights issue, which will happen in the later part of next calendar year, second half of next calendar year. As far as the project cost is concerned, we are also looking at the project costs. Some aspects of the project have gone up in terms of cost. Land is definitely more expensive than we had envisaged as well as for the equipment. The rupee has depreciated after the Iran war substantially. Sea freight has gone up, as well as metals have gone up. So, our commodities have gone up. So, the project cost is going to be higher than what we had envisaged. Also, certain equipment that we had planned in the second phase, we have preponed in the first phase. And we are also looking at some product reconfiguration to look at to better service the non-automotive parts. So, all that, the project is being modified to the conceptualization. Everything will be finalized by March, April next year. But suffice it to say at this point in time that the project cost will be higher than the INR2,000 crores that we had envisaged. But we will also have the ability to have a higher production than 500,000 tons eventually. So, we are building in scope to increase the production beyond 500,000 tons to at least 700,000 tons in the second phase. And further after that, also with some more additional equipment. The additional equipment that we'll have to add will not be of a highly significant quality. The other thing we are examining, of course, the decision will be taken by the Board, is also to look at examining, suspending the dividend for 3-4 years. It does not make sense to give dividend, pay tax on that, and then ask rights issue for these same investors to put in money and rights issue. We are examining this. The decision, of course, will be taken by the Board in the April Board meeting. Page 3 of 15 Vardhman Special Steels Limited October 28, 2026 So overall, I think the business remains good. The dema [Showing first 8,000 characters — download PDF for full document]