ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Vardhman Special Steels's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹1,359 Mil.
Vardhman Special Steels's average Total Assets over the quarter that ended in Mar. 2026 was ₹16,331 Mil. Therefore, Vardhman Special Steels's annualized ROA % for the quarter that ended in Mar. 2026 was 8.32%.
The historical rank and industry rank for Vardhman Special Steels's ROA % or its related term are showing as below:
NSE:VSSL'
s ROA % Range Over the Past 10 Years
Min: 0.4 Med: 7.09 Max: 11.69
Current: 8.46
During the past 13 years, Vardhman Special Steels's highest ROA % was 11.69%. The lowest was 0.40%. And the median was 7.09%.
NSE:VSSL's ROA % is ranked better than 88.24% of 638
companies
in the Steel industry
Industry Median: 1.93
vs NSE:VSSL: 8.46
Vardhman Special Steels (NSE:VSSL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Steel subindustry, Vardhman Special Steels's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Vardhman Special Steels's ROA % distribution charts can be found below:
* The bar in red indicates where Vardhman Special Steels's ROA % falls into.
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Vardhman Special Steels (NSE:VSSL) has a ROA % of 8.32% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Vardhman Special Steels and its competitors. This is 17% above median its historical median of 7.09. Over the past decade, Vardhman Special Steels' ROA % has ranged from 0.40 to 11.69. According to the industry distribution chart, Vardhman Special Steels ranks #75 out of 638 companies in the Steel industry, placing it in the top 11.8%.
Is Vardhman Special Steels' ROA % too high?
Vardhman Special Steels' current ROA % of 8.32% is 17% above median its 10-year median of 7.09. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 11.69. The Steel industry median ROA % is 1.93. Vardhman Special Steels' value of 8.32% is 331.1% above this industry median. Based on the distribution chart, Vardhman Special Steels ranks #75 out of 638 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Vardhman Special Steels ranks #75 out of 638 companies for ROA %. This places Vardhman Special Steels in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 1.93. Vardhman Special Steels' value of 8.32% is 331.1% above this benchmark. Historically, Vardhman Special Steels' own ROA % has ranged from 0.40 to 11.69 over the past decade. While the company's 10-year median is 7.09 vs. the industry median of 1.93, Vardhman Special Steels has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Steel company?
The median ROA % among Steel companies is 1.93, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vardhman Special Steels's current ROA % of 8.32% is 331.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Vardhman Special Steels and its competitors. For the Steel industry, the median ROA % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Special Steels's current ROA % is 8.32%, which is 17% above median its own 10-year median of 7.09. 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 ₹224.07, compared to a current price of ₹282.90 — trading 26.3% above its estimated fair value. The current ROA % is 8.32%, which is 17% above median its 10-year median of 7.09 and 331.1% above the Steel industry median of 1.93. Vardhman Special Steels' overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Vardhman Special Steels (NSE:VSSL), the current ROA % is 8.32% 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 ₹282.90 is trading 26.3% above its estimated GF Value™ of ₹224.07.
GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.
Key valuation signals for NSE:VSSL:
ROA %: 8.32% (17% above median its 10-year median of 7.09)
GF Value™: ₹224.07 vs. price of ₹282.90 (26.3% above fair value)
Industry Position: 331.1% above the Steel median (#75 of 638)
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 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.
75GF Score
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