Analysts/Institutional Investor Meet/Con. Call Updates

G@) | 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:JUL:2026-27 Dated: 29-July-2026 BSE Limited, The National 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 — Qi 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 23 July, 2026 to discuss the Company’s business and financial performance for Q1 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/ WWW. vVARDH NAN: COM “Vardhman Special Steels Limited Q1 FY27 Earnings Conference Call” July 23, 2026 MANAGEMENT: MR. SACHIT JAIN – CHAIRMAN AND MANAGING DIRECTOR – VARDHMAN SPECIAL STEELS LIMITED MR. R.K. REWARI – EXECUTIVE DIRECTOR- VARDHMAN SPECIAL STEELS LIMITED MR. SANJEEV SINGLA – CHIEF FINANCIAL OFFICER – VARDHMAN SPECIAL STEELS LIMITED Page 1 of 13 Vardhman Special Steels Limited July 23, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q1 FY '27 Earnings Conference Call of Vardhman Special Steels Limited. This conference call may contain 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. 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. Sachit Jain, Chairman and Managing Director, Vardhman Special Steels Limited. Thank you, and over to you, sir. Sachit Jain: Thank you so much. Good morning, ladies and gentlemen. Thank you very much for continuing to show an interest in our company and being with us at here today. We closed a good quarter. And overall, so the highlights of the quarter have been, first, of course, we signed the Technical Assistance Agreement for the forging unit with Aichi Steel, Japan. So, the forging project is going on as scheduled. And it looks like this project cost is going to be a bit lower than what we had estimated. And we'll update once we have a better fix on the numbers. But clearly, the project cost will be less than what we had estimated. As far as this quarter is concerned, volumes have been good and price revisions have taken place because costs have gone up. Some prices have been agreed, some are in the process of agreeing, meaning the OEM has agreed to a particular amount, but it's likely to upward increase the price because other companies have not accepted that kind of increase. Anyway, that will happen when it happens. Demand scenario is good. We are, in fact, finding it difficult to meet the requirements of the customers. So, we are scrambling how we can make sure that we're able to increase capacity further. We have applied to the Environment Ministry for approval to increase capacity to 360,000 tons of melting. But that will happen when it will happen. Meanwhile, some of the other things that we have been doing is the new reheating furnace has been stabilized. New NDT line will be commissioned by September, October of this year. And new peeling line will be commissioned by September, October of this year. After this, the bottlenecks in our smooth flow of production will get removed. Currently, we continue to have pile up of material that is ready as the customer wants, but because of lack of testing capacity it's not able to go through. Even peeling, we need to get some peeling material done on job work from outside. All those things would come in-house and we'll be able to improve the product mix and quality of sales in the second half of this year. Page 2 of 13 Vardhman Special Steels Limited July 23, 2026 Solar plant, we've got a full quarter of savings we've had 2.3 crores units this quarter and roughly 43% of our total power consumption is coming from solar. There have been further changes in the government policy, which means we can enhance the solar project. We expect in about a year or 1.5 years' time, we'll be going ahead and we'll be increasing the capacity by almost 50% of our solar plant. So that will add to the bottom line and to reduce the carbon footprint. Already, our carbon footprint is below 0.5. So, it places us with best amongst the Indian companies in terms of carbon footprint and approvals. So, there isn't any other company which is near us in carbon footprint, which has the approvals. This enables us in a very strong position for exports to Europe. Overall, EBITDA numbers are within our range of 8,000 to 11,000 level. We would like to remove part of the EBITDA for your calculation purposes because some of the EBITDA and other income is from the earnings we have got from the surplus funds of Aichi we have deployed in money markets. That is really not business income, so we have removed that in our calculation. And if we remove that, our EBITDA per ton for this quarter comes to INR10,700. So, I'm gradually getting the confidence that for next year, we can improve our range. Today, our range is 8,000 to 11,000. But next year, we should be able to increase the range from 8,000 to 12,000. So, I can see profitability improving. And that is a result of cost reductions, and bigger production, fixed cost being spread over a bigger volume. That's all from me in the opening remarks. Sorry, one last thing. As far as the new steel plant is concerned, we are partly reconfiguring the plant to reduce carbon footprint further and improve energy efficiency. So, things like scrap preheating, which was not envisaged earlier and some other equipment that we had not envisaged earlier, including testing lines. Today, we had planned only one continuous testing line for the new plant. But seeing the way the market is changing and demand for continuous testing and automatic testing lines, we will have to need more -- we need to add more lines, which means the project cost is going to increase as well as the capacity is going to increase of this plant. So again, details are still being worked out. I think by next Board meeting, we will be able to have a clear picture and we present a refined project with an increased capacity and try to keep cost per ton similar to where we have envisage, maybe a little higher because of Iran war. Metals have gone up everywhere as well as rupee has depreciated. So, the cost of specialty is going to be also based on that. So those are being worked out, and we will have a better estimate in the next quarter. As of now, we are still on track to commission the project in the financial year '29-'30. That's all from me for now in the opening remarks. Singla is going to add some numbers, and then we can have Q&A session. Sanjeev Singla: Good morning, ladies and gentlemen. On the numbers for the quarter. This quarter, we have achieved 59,000 tons of sales, which is higher than the corresponding quarter of last year by Page 3 of 13 Vardhman Special Steels Limited July 23, 2026 6.5%. And revenue from operations is at INR486 crores, higher by 12%, it's a combination of both. O [Showing first 8,000 characters — download PDF for full document]