Vinati Organics (524200) Q1 25/26 earnings summary

Executive summary

• 55% of sales are exports, with 33% of that to the US; 80% of US exports are ATBS and related products exempt from tariffs.

• Tariffs have negligible impact on sales due to exemptions and customer absorption.

• Margin expansion in Q1 driven by lower raw material prices compared to Q4.

• Consolidated revenue from operations for Q1 FY26 was ₹541.97 crore, up from ₹524.72 crore in Q1 FY25, but down from ₹648.46 crore in Q4 FY25.

• Net profit after tax for the quarter was ₹104.19 crore, compared to ₹84.15 crore in Q1 FY25 and ₹123.04 crore in Q4 FY25.

Financial highlights

• EBITDA margin increased from 26% in Q4 to 30% in Q1 due to raw material price declines.

• Sustainable EBITDA margin for the year expected at 27% year-over-year.

• Revenue growth forecasted at 15% for the year, with volume growth at 20%.

• Consolidated total revenue for Q1 FY26 was ₹549.36 crore; total expenses were ₹408.20 crore.

• Profit before tax for Q1 FY26 was ₹141.16 crore, compared to ₹112.12 crore in Q1 FY25 and ₹163.90 crore in Q4 FY25.

Outlook and guidance

• 15% revenue growth expected for the year, with 27% EBITDA margin seen as sustainable.

• Positive demand outlook for antioxidants in India due to increased domestic PVC use.

• ATBS capacity expansion to drive future growth, with new capacity coming online in phases through April 2026.

• Anti-dumping duty on PVC imports expected to boost domestic antioxidant demand.

• Standalone revenue for Q1 FY26 was ₹542.26 crore, up from ₹524.72 crore in Q1 FY25, but down from ₹648.45 crore in Q4 FY25.