VASWANI - Vaswani Industri
📢 Recent Corporate Announcements
Vaswani Industries has approved the conversion of C.G. Ispat Private Limited, in which it holds an 8.23% stake, into a Limited Liability Partnership (LLP). The company will maintain its equivalent capital contribution in the newly formed C.G. Ispat LLP, ensuring no dilution of its existing interest. Furthermore, the board has nominated Whole-time Director Mr. Yashwant Vaswani to represent the company as a partner in the LLP. This structural change is a regulatory transition for the investee entity and does not impact the company's core operations.
- Consent granted for conversion of C.G. Ispat Private Limited into C.G. Ispat LLP
- Vaswani Industries to maintain its 8.23% stake as capital contribution in the LLP
- Nomination of Whole-time Director Yashwant Vaswani as the representative partner
- Board approval finalized in the meeting held on March 11, 2026
Vaswani Industries has announced that its Board Meeting to approve Q3 FY 2025-26 financial results is now set for February 28, 2026. This follows the cancellation of the previously scheduled meeting on February 13, 2026, because financial statements were not finalized. The trading window for insiders will now remain closed until March 1, 2026. Investors should note the two-week delay in the reporting timeline for the quarter ended December 31, 2025.
- Board Meeting rescheduled to Feb 28, 2026, for Q3 FY26 results approval.
- Original Feb 13 meeting cancelled due to non-finalization of financial statements.
- Trading window closure extended for all designated persons until March 1, 2026.
- Results pertain to the quarter ended December 31, 2025.
Vaswani Industries has deferred the announcement of its Q3 FY 2025-26 financial results, which were originally scheduled for review on February 13 and 14, 2026. The company cited technical difficulties arising from SAP accounting system updates and maintenance as the primary reason for the delay. These issues were identified during the review process by the Statutory Auditors, preventing the finalization of accounting data. The company expects to convene a new board meeting to approve the results within the next 14 days.
- Board meeting adjourned from Feb 13 to Feb 14 failed to finalize Q3 FY26 results
- Delay caused by SAP accounting system maintenance and technical data finalization issues
- Statutory Auditors identified difficulties during the review of accounting data
- Company plans to convene a new board meeting within 14 days for result approval
- Trading window remains closed until 48 hours after the eventual results declaration
Vaswani Industries Limited has announced the results of its postal ballot, where shareholders approved eight key resolutions. These include the re-appointment of Mr. Yashwant Vaswani as Whole-time Director and a revision of his remuneration. Additionally, six related party transactions were approved for the payment of remuneration to various family members holding management positions within the company. While all resolutions passed, a significant 21.93% of the voting public non-institutional shareholders voted against the remuneration and related party proposals.
- Re-appointment of Yashwant Vaswani as Whole-time Director approved with 99.99% support from voting public.
- Revision of remuneration for Yashwant Vaswani passed despite 21.93% dissent from voting public shareholders.
- Six Related Party Transactions (RPTs) approved for remuneration to family members in roles ranging from CFO to HR Head.
- Total public non-institutional participation was 1,459,172 votes, representing approximately 11.7% of that category's holding.
- Promoter group (2.04 crore shares) was interested in the resolutions and their votes were excluded from the RPT and remuneration tallies.
Vaswani Industries Limited has received in-principle approval from BSE for the listing of 16,00,000 equity shares issued on a preferential basis. These shares are being allotted to the Promoter Allottee at an issue price of ₹50 per share, which includes a premium of ₹40. The company had previously secured a similar approval from the National Stock Exchange (NSE) in October 2025. This move indicates a capital infusion by the promoters, often viewed as a sign of confidence in the company's long-term value.
- In-principle approval received from BSE for listing 16,00,000 equity shares.
- Shares issued at ₹50 each (₹10 face value plus ₹40 premium) to Promoter Allottee.
- NSE in-principle approval for the same issuance was obtained on October 30, 2025.
- The issuance follows Regulation 30 of SEBI (LODR) Regulations, 2015.
Vaswani Industries Limited has scheduled a Board of Directors meeting on February 13, 2026, to consider and approve the unaudited financial results for the quarter ended December 31, 2025. In compliance with SEBI insider trading regulations, the trading window for insiders has been closed since January 1, 2026. The window will remain closed until 48 hours after the board meeting concludes, specifically until February 15, 2026. This is a routine regulatory filing that precedes the official announcement of quarterly financial performance.
- Board meeting scheduled for February 13, 2026, to approve Q3 FY26 financial results.
- Trading window for designated persons has been closed since January 1, 2026.
- The trading window will reopen 48 hours after the meeting, on February 15, 2026.
- Compliance maintained under SEBI (Prohibition of Insider Trading) Regulations, 2015.
Vaswani Industries Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the period ended December 31, 2025. The company confirmed that its entire share capital is already held in dematerialized form. The Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited, reported that no requests for dematerialization or rematerialization were received or processed during the quarter. This is a standard administrative filing confirming the integrity of the company's shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025
- 100% of the company's share capital is confirmed to be in dematerialized form
- Zero dematerialization or rematerialization requests were processed during the quarter
- Certificate issued by MUFG Intime India Private Limited (formerly Link Intime India)
Vaswani Industries has issued a postal ballot notice seeking shareholder approval for the re-appointment of Mr. Yashwant Vaswani as Whole-time Director for a five-year term. The company is proposing an upward revision of his remuneration to ₹1.86 crore per annum, effective retrospectively from April 1, 2025, despite acknowledging potential inadequacy of profits. Additionally, the ballot seeks approval for several related party transactions involving remuneration for six family members in various management and executive roles, including a monthly pay of up to ₹15 lakh for Mr. Ravi Vaswani.
- Re-appointment of Yashwant Vaswani as Whole-time Director for 5 years effective from December 10, 2025.
- Proposed annual remuneration for Yashwant Vaswani increased to ₹1.86 crore, including ₹1.80 crore salary.
- Approval sought for Ravi Vaswani's remuneration as President at a limit of ₹15 lakh per month (₹1.8 crore annually).
- Six related party transactions proposed for remuneration of family members in HR, Finance, and Marketing roles.
- Remote e-voting period for shareholders is scheduled from January 10, 2026, to February 8, 2026.
Vaswani Industries Limited has informed the exchanges that its trading window will be closed starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ended December 31, 2025. The window will remain closed for all designated persons, including promoters and directors, and will reopen 48 hours after the results are announced. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026
- Closure pertains to the un-audited financial results for the quarter ended December 31, 2025
- Trading window to reopen 48 hours after the declaration of financial results
- Restriction applies to Promoters, Directors, KMPs, and all other Designated Persons
Vaswani Industries has re-appointed Mr. Yashwant Vaswani as Whole-Time Director for a further term of five years, commencing from December 10, 2025, to December 9, 2030. This re-appointment is subject to shareholders' approval. The board has also approved the revision in his remuneration for the period from April 1, 2025 to March 31, 2028. Shareholders will vote on the re-appointment and remuneration revision via postal ballot.
- Re-appointment of Mr. Yashwant Vaswani (DIN: 01627408) as Whole-Time Director.
- Term of re-appointment is for five years, from December 10, 2025 to December 9, 2030.
- Board approved revision in remuneration for the period from April 1, 2025 to March 31, 2028.
- Mr. Yashwant Vaswani has over twenty years of experience in the steel and iron industry.
Vaswani Industries' board re-appointed Mr. Yashwant Vaswani as Whole-Time Director for a further term of five years, commencing from December 10, 2025, to December 9, 2030. The board also approved the revision in his remuneration for the period from April 1, 2025 to March 31, 2028. A postal ballot will be conducted to seek shareholder approval for this re-appointment and remuneration revision, along with authorization for remuneration revisions for other key management personnel. The board meeting concluded at 7:30 p.m.
- Re-appointment of Mr. Yashwant Vaswani as Whole-Time Director for 5 years (December 10, 2025 to December 9, 2030)
- Remuneration revision for Mr. Yashwant Vaswani approved for the period from April 1, 2025 to March 31, 2028
- Postal ballot approved for re-appointment of Mr. Yashwant Vaswani and revision of his remuneration
- Board meeting concluded at 7:30 p.m. on December 9, 2025
Financial Performance
Revenue Growth by Segment
Total revenue was stable at INR 389 Cr in fiscal 2024, supported by a 12% rise in sales volumes which offset lower market prices. Segment-specific percentage growth for billets and sponge iron is not disclosed.
Geographic Revenue Split
Not disclosed in available documents, though 100% of manufacturing operations are located in Raipur, Chhattisgarh.
Profitability Margins
Net Profit Ratio was 2.09% in FY25, representing a 9.90% decrease from 2.32% in FY24. Operating margins have remained stable between 5-6% over the last four fiscals through March 31, 2024.
EBITDA Margin
Operating margins were estimated at 5.7% in Q1 FY25. Return on Capital Employed (ROCE) was 7.20% in FY25, a 44.43% decrease from 12.96% in FY24 due to a significant increase in capital employed.
Capital Expenditure
The company is undertaking a major capital expenditure of INR 115.2 Cr for the installation of a 30MW solar power plant to improve operating efficiency and reduce power costs.
Credit Rating & Borrowing
Assigned IVR BBB/Stable for Long Term Bank Facilities (INR 168.75 Cr) and IVR A3+ for Short Term Bank Facilities (INR 65.00 Cr) as of July 14, 2025. Bank limit utilization is low at 34.17%.
Operational Drivers
Raw Materials
Primary raw materials include iron ore and coal, which are essential for the production of sponge iron and mild steel billets. Specific cost percentages for each were not disclosed.
Import Sources
Sourced primarily from the Raipur, Chhattisgarh region, benefiting from the strategic location in the Siltara industrial hub which provides ease of access to raw material clusters.
Capacity Expansion
Current installed capacity is 66,000 MTPA for MS Billets and 90,000 MTPA for Sponge Iron. The company is planning an expansion of billet manufacturing capacity over the medium term.
Raw Material Costs
Profitability is highly susceptible to volatility in raw material prices. The company uses backward integration, including captive power plants, to mitigate these cost fluctuations.
Manufacturing Efficiency
Sales volumes increased by 12% in FY24, indicating improved capacity utilization. Manufacturing efficiency is expected to rise following the completion of the 30MW solar project.
Logistics & Distribution
The manufacturing facility is strategically located at Siltara, Raipur, which is well-connected by road and rail to major cities, facilitating efficient distribution of steel products.
Strategic Growth
Growth Strategy
Growth will be achieved through backward integration initiatives, specifically the 30MW solar plant to lower input costs, and the proposed expansion of billet manufacturing capacity to increase market scale.
Products & Services
Mild Steel (MS) Billets and Sponge Iron.
Brand Portfolio
Vaswani Industries Limited (Vaswani Group).
Market Expansion
Targeting growth in the iron and steel segment by leveraging the established Vaswani Group presence and expanding billet capacity over the medium term.
External Factors
Industry Trends
The steel industry is currently characterized by intense competition and cyclicality. VIL is positioning itself for the future by investing in renewable energy (solar) to lower its carbon footprint and operational costs.
Competitive Landscape
Faces intense competition from both large integrated steel players and numerous secondary steel producers in the MS billet and sponge iron segments.
Competitive Moat
Moat is derived from 30+ years of promoter experience and a strategic locational advantage in Chhattisgarh's industrial hub. Sustainability is supported by low gearing (0.3x) and promoter capital infusions.
Macro Economic Sensitivity
Highly sensitive to economic developments within India and globally, as steel demand is closely linked to GDP growth and infrastructure spending.
Geopolitical Risks
Exposed to global market conditions that influence international steel prices and raw material availability.
Regulatory & Governance
Industry Regulations
Operations are subject to environmental pollution norms and manufacturing standards applicable to the iron and steel industry in India.
Environmental Compliance
Investing INR 115.2 Cr in solar power to align with environmental standards and reduce reliance on traditional power sources.
Taxation Policy Impact
The company faces uncertain tax positions regarding matters under dispute, which are considered a Key Audit Matter for the FY25 audit.
Legal Contingencies
Pending litigations exist regarding tax disputes and other matters as disclosed in Note 30 of the financial statements; specific case values were not provided.
Risk Analysis
Key Uncertainties
Key risks include project stabilization risk for the new solar plant and billet expansion, which could impact profitability if delayed. A 20% revenue decline is cited as a major downward rating factor.
Geographic Concentration Risk
High geographic concentration with 100% of manufacturing facilities located in Siltara, Raipur, Chhattisgarh.
Technology Obsolescence Risk
The shift toward solar power indicates a digital and technological transformation to maintain cost competitiveness against more modern plants.
Credit & Counterparty Risk
Liquidity is adequate with a current ratio of 2.7x and cash accruals of INR 15-18 Cr, which are sufficient to cover term debt obligations of INR 2-11 Cr.