Vinati Organics (524200) Q1 26/27 earnings summary

Executive summary

• Revenue grew by 28% year-over-year in Q1, driven by rupee depreciation, higher export volumes, and new products, with unaudited standalone and consolidated financial results approved and reviewed by the Board and auditors.

• EBITDA increased by 7% year-over-year, with margin compression due to higher raw material costs and limited pass-through.

• Net profit rose by 4.5% year-over-year, reflecting margin pressure, with both standalone and consolidated results showing continued operations in chemical manufacturing.

Financial highlights

• Standalone revenue from operations for Q1 FY27 was ₹697.75 crore, up from ₹542.26 crore in Q1 FY26; consolidated revenue was ₹695.91 crore, up from ₹541.97 crore.

• Standalone net profit for Q1 FY27 was ₹123.56 crore, compared to ₹112.78 crore in Q1 FY26; consolidated net profit was ₹108.86 crore, compared to ₹104.19 crore.

• EBITDA margin for the quarter was around 26%, in line with guidance.

• 55% of revenue came from exports, benefiting from currency movements.

Outlook and guidance

• Confident in maintaining 26%-27% EBITDA margin for FY 2027, supported by product mix and capacity expansion.

• Second half expected to outperform first half due to new product launches and capacity ramp-up.

• Overall revenue growth of at least 15% projected for the year, with corresponding EBITDA growth.

• Veeral Organics expected to contribute about INR 150 crores in FY 2028, with steady-state potential of INR 400-500 crores.