Vardhman Special Steels (NSE:VSSL) Effective Interest Rate on Debt %: 11.86% (As of Mar. 2026)


NSE:VSSL Vardhman Special Steels Ltd NSE:VSSL
79 GF Score
Price ₹274.35
GF Value ₹222.49
Valuation Modestly Overvalued
! 7 Warning Signs
View Full Analysis

What is Vardhman Special Steels Effective Interest Rate on Debt %?

Vardhman Special Steels NSE:VSSL -0.81% 79 Effective Interest Rate on Debt % is 11.86% as of Mar. 2026. GuruFocus rates NSE:VSSL with a GF Score™ of 79/100 and a GF Value™ of ₹222.49 (Modestly Overvalued). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Vardhman Special Steels's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₹110 Mil. Vardhman Special Steels's average total debt for the quarter that ended in Mar. 2026 was ₹930 Mil. Therefore, Vardhman Special Steels's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 11.86%.


Vardhman Special Steels  (NSE:VSSL) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Vardhman Special Steels Effective Interest Rate on Debt % Related Terms


Vardhman Special Steels Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Vardhman Special Steels's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Vardhman Special Steels Effective Interest Rate on Debt % Chart

Vardhman Special Steels Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.36 10.81 15.42 18.26 11.16

Vardhman Special Steels Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.54 11.85 9.79 19.04 11.86

NSE:VSSL vs NUE, STLD, RS: Effective Interest Rate on Debt % Comparison

For the Steel subindustry, Vardhman Special Steels's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vardhman Special Steels Effective Interest Rate on Debt % vs Steel Industry

For the Steel industry and Basic Materials sector, Vardhman Special Steels's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Vardhman Special Steels's Effective Interest Rate on Debt % falls into.


NSE:VSSL
79GF Score
Vardhman Special Steels Ltd NSE:VSSL
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Vardhman Special Steels Effective Interest Rate on Debt % Calculation

Vardhman Special Steels's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -119.058/( (1203.04+930.053)/ 2 )
=-1  *  -119.058/1066.5465
=11.16 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=36.513 + 1166.527
=1203.04

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.027 + 929.026
=930.053

Vardhman Special Steels's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -110.3/( (0+930.053)/ 1 )
=-1  *  -110.3/930.053
=11.86 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1.027 + 929.026
=930.053

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 11.86% mean?
Vardhman Special Steels (NSE:VSSL) has a Effective Interest Rate on Debt % of 11.86% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Vardhman Special Steels and its competitors.
Is Vardhman Special Steels' Effective Interest Rate on Debt % too high?
Vardhman Special Steels' current Effective Interest Rate on Debt % is 11.86%. Overall, Vardhman Special Steels has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' Effective Interest Rate on Debt % compare to NUE and STLD?
Vardhman Special Steels' Effective Interest Rate on Debt % of 11.86% can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Steel company?
A good Effective Interest Rate on Debt % depends on the Steel industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Vardhman Special Steels and its competitors. Vardhman Special Steels's current Effective Interest Rate on Debt % is 11.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹222.49, compared to a current price of ₹274.35 — trading 23.3% above its estimated fair value. The current Effective Interest Rate on Debt % is 11.86%. Vardhman Special Steels' overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Vardhman Special Steels (NSE:VSSL), the current Effective Interest Rate on Debt % is 11.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Vardhman Special Steels (NSE:VSSL) Overvalued in 2026?

Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued. The current stock price of ₹274.35 is trading 23.3% above its estimated GF Value™ of ₹222.49. GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.

Key valuation signals for NSE:VSSL:

  • Effective Interest Rate on Debt %: 11.86%
  • GF Value™: ₹222.49 vs. price of ₹274.35 (23.3% above fair value)
  • GF Score™: 79/100 with 7 warning signs

No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vardhman Special Steels Business Description

Other Exchanges 534392:India
Address Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141 010
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
79GF Score

Get the complete analysis for NSE:VSSL

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹274.35
Price
₹222.49
GF Value