VMS TMT Ltd

Financial Performance

• Q1 FY27 total income: 247.88 cr; Q1 FY26: 213.39 cr; YoY +16.16%.
• PAT for Q1 FY27: INR 2.45 cr.
• EBITDA declined 41% YoY; no exact EBITDA figure disclosed.

Operations & Capex

• Billet production in Q1: 34,400 metric tons.
• Installed billet capacity: 2.16 lakh metric tons.
• Utilization around 80%; plant runs 20–22 hours daily.
• 15 MW captive solar: 12 MW operational; 3 MW remaining in ~1.5 months.
• Solar covers ~30% of power requirement.
• Annual solar generation: 2.70 crores units; post-EMI savings about INR 10 crores.
• Inventory at INR 228.35 crores (FY26); driven by new high-margin products and monsoon.
• Inventory to normalize after Diwali; expected below INR 200 crores.

Merger & Growth Initiatives

• Amalgamation with Aditya Ultra Steel approved; subject to regulatory approvals.
• Post-merger Gujarat expansion to include Saurashtra and Kutch.
• Combined capacity post-merger: 3 lakh tons (1 lakh + 2 lakh).
• Topline target: INR 2000 crores plus; EBITDA/PAT expected to improve.
• Sales growth guidance: 10%–15%; PAT to rise modestly.
• Dealer network grows 10–15% annually.

Outlook & Guidance

• Sales growth guidance: 10%–15% annually.
• Inventory normalization post-Diwali; target below INR 200 crores.
• Utilization improvement target: 4–5% annually; billet utilization ~80%.

Q&A Highlights

• Q1 billet ramp-up: production 34,400 MT; utilization target around 80%.
• Power savings from solar: INR 4 per unit; 2.7 crore units annually; ~INR 10 crores post EMI.
• Raw material costs: scrap prices up; forex impact; margins compressed.
• Inventory dynamics: higher-margin products; monsoon; normalization after Diwali.
• Dealer network expansion: 227 Gujarat dealers; merger expands footprint; focus on Tier 2/3.
• Imported scrap viability: preferred for quality; 50–60% imports; local 20–25% sponge iron; 20–25% local.
• Geography focus: Gujarat; Tier 2/3 and rural markets; institutional sales limited.
• Merger timeline: months to merge; completion timing not disclosed.

Meeting Details

• Date: 20 August 2026; time undisclosed.
• Meeting type: earnings conference call; mode: virtual.

Participants

• Key company participant: Managing Director.

Purpose

• Purpose: earnings results discussion for quarter ended June 30, 2026.

Additional Notes

• Audio recording of the call is available.

Business overview

• TMT Bars manufacturer in Gujarat; dual scrap- and billet-based production via CCM and rolling mill.
• Backward integration completed Sep 2024, enabling in-house scrap-to-bars production.
• Exclusive Kamdhenu brand license in Gujarat with 227 dealers and 3 distributors.
• Installed capacity: Bars 200,000 MT; Billets 216,000 MT.
• Power requirement 22 MW; solar plan 15 MW to cut electricity costs.
• ISO 9001/45001/14001 certified.

Operational highlights

• Q1 FY27 total income ₹24,787.89 lakh, revenue ₹24,775.74 lakh.
• FY26: TMT Bars production 141,611 MT; Billets 148,708 MT.
• Backward integration investment ₹117.11 crore.
• 30-ton induction furnace installed; CCM capacity 216,000 MT.
• Solar project 15 MW planned; ₹4,640 lakh projected cost.
• Distribution network includes 3 distributors and 227 dealers in Gujarat.

Financial performance

• Q1 FY27 EBITDA (excl. other income) ₹1,218.93 lakh.
• Q1 FY27 PAT ₹446.75 lakh.
• FY26 Revenue ₹84,019.95 lakh; EBITDA ₹6,231.85 lakh; PAT ₹2,103.36 lakh.
• FY26 Total assets ₹51,941.16 lakh; total liabilities ₹29,127.89 lakh.
• FY26 Equity capital ₹4,963.12 lakh; Net worth ₹22,813.28 lakh.
• Borrowings FY26: non-current ₹5,210.95 lakh; current ₹17,657.86 lakh.

Capital structure & liquidity

• Equity share capital rose to ₹4,963.12 lakh in FY26.
• Net worth stood at ₹22,813.28 lakh.
• Total borrowings: non-current ₹5,210.95 lakh; current ₹17,657.86 lakh.
• Cash and cash equivalents ₹104.68 lakh; bank balances ₹885.04 lakh.

Strategic priorities & outlook

• Renewable energy integration; target 40 MW capacity to meet energy needs.
• Backward integration strengthens raw material security and cost efficiency.
• Phase 1: expand via job work; Phase 2: in-house capacity expansion.
• Diversification into MS Pipes; growth through selective expansion.
• Focus on Tier II/III Gujarat markets under Kamdhenu brand; ISO and ESG emphasis.

Risks & governance

• Rising power costs; mitigated by solar project and cost controls.
• Reliance on Kamdhenu license; mitigated by broad Gujarat distributor network.
• Management: Varun Jain (MD), Manojkumar Jain (Non-Executive Director), Rishabh Singhi (WTD).

Meeting Details

• Date and time: 20 August 2026, 4:00 PM IST.
• Type and mode: group, virtual investor conference call.
• Event: Q1 FY27 Earnings Call for VMS TMT Ltd.
• Key company participants: Promoter Chairman & Managing Director; Whole-Time Director.
• Purpose: discuss Q1 FY27 results.
• Joining details: universal dial-in numbers provided.

Materiality assessment authority

• Date of authorization: 13 August 2026.
• Authorized individuals: Varun Manojkumar Jain (Chairman/MD), Vikram Babubhai Patel (CFO), Shikha Ranjan (Company Secretary/Compliance Officer).
• Purpose: enable compliance function to assess materiality and communicate material updates to stock exchanges.

Financial highlights

• Q1 FY27 unaudited total income ₹24,787.89 lakhs.
• EBITDA ₹1,218.93 lakhs; Net profit ₹446.75 lakhs.

Operational and strategic updates

• Billet facility commissioned, strengthening backward integration.
• In-house billet production from scrap enhances material control.
• Integrated capacity: 200,000 MT TMT bars and 216,000 MT billets.
• Strong Gujarat distribution via Kamdhenu brand with 3 distributors, 227 dealers.
• Amalgamation of Aditya Ultra Steel Limited approved, subject to regulatory approvals.
• 15 MW captive solar plant under development.

Financial results approved

• Standalone unaudited results for quarter ended 30 June 2026 approved; Limited Review Report unmodified.
• Audit Committee reviewed and recommended the results; Board approved.
• Period: quarter ended 30 June 2026; unaudited standalone results.

Key financial metrics

• Revenue from operations: ₹24,775.74 Lakh.
• Total income: ₹24,787.89 Lakh.
• Profit after tax: ₹446.75 Lakh.
• EPS (continuing): ₹0.90 basic/diluted.
• Debt-Equity ratio: 0.91.
• Net worth: ₹23,251.95 Lakh.
• Current ratio: 1.38.