Vinati Organics (524200) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose YoY on standalone and consolidated bases, while EBITDA, PAT and EPS declined amid higher logistics and energy costs and ATBS destocking.

• Management expects H2 volume recovery, FY27 top-line growth of 20%-25% and EBITDA margin of 24%-25%; FY28 margin guidance is 25%-26%.

• Unaudited standalone and consolidated results received unmodified limited-review conclusions.

Financial highlights

• Standalone Q2 revenue was ₹668.00 crore vs ₹546.27 crore; EBITDA fell 27% to ₹142 crore and PAT was ₹86.84 crore vs ₹129.02 crore YoY.

• Consolidated Q2 revenue was ₹680.21 crore vs ₹550.22 crore; EBITDA fell 24% to ₹138 crore and PAT was ₹78.36 crore vs ₹114.88 crore YoY.

• Standalone H1 revenue was ₹1,365.75 crore vs ₹1,088.53 crore; EBITDA declined 10% to ₹333 crore and PAT was ₹210.40 crore vs ₹241.80 crore.

• Consolidated H1 revenue was ₹1,376.12 crore vs ₹1,092.19 crore; EBITDA declined 9% to ₹318 crore and PAT was ₹187.22 crore vs ₹219.07 crore.

• No exceptional items were recorded in Q2 or H1; reported PBT equaled PBT before exceptional items and tax.

Outlook and guidance

• FY27 top-line growth of 20%-25% is expected, supported by higher volumes and pricing; EBITDA margin guidance is 24%-25%.

• FY28 EBITDA margin is expected at 25%-26%, with better ATBS volumes and pricing; management said the worst is behind.

• ATBS volumes improved, Q3 demand looked strong and recovery is expected through H2.

• Logistics rates began cooling in Q3, with further reductions expected in Q4 to support profitability.

• VOPL ramp-up is expected from April, with optimum capacity targeted within one year; process re-engineering is expected to be streamlined by April next FY.