Vesuvius India H1FY26 Results (NSE: VESUVIUS)
Signal: Steady quarter
The read
The trajectory weakened in H1FY26: revenue grew 2.9% YoY to ₹103,602 lakh, but EBITDA margin contracted 85bps to 18.3% and PAT fell 6.5% to ₹11,436 lakh, with employee costs up 8.7% and depreciation up 26.9%; modest gross-margin expansion was insufficient to offset operating and depreciation pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,036.02 Cr | 2.9% | N/A |
| EBIT | ₹154.43 Cr | -6.4% | |
| Net profit | ₹114.36 Cr | -6.5% | |
| EPS | ₹5.63 | -6.6% | |
| EBIT margin | 18.3% |
P&L walk
H1FY26 revenue rose 2.9% YoY to ₹103,602 lakh, but EBITDA declined 1.6% to ₹18,941 lakh and PAT declined 6.5% to ₹11,436 lakh as higher employee costs and depreciation offset modest sales growth.
Key positives
- Gross margin expanded 70bps YoY to 44.9% as raw materials and purchases declined to 55.1% of revenue from 55.8%, although the filing does not disclose the driver.
- Operating cash flow increased to ₹5,927 lakh from ₹4,795 lakh despite PAT declining 6.5% to ₹11,436 lakh.
- The balance sheet remains lightly levered, with ₹57,618 lakh of cash and bank balances and no reported borrowings other than lease liabilities.
Key concerns
- EBITDA declined 1.6% YoY to ₹18,941 lakh despite revenue growth of 2.9%, causing EBITDA margin to contract 85bps to 18.3%.
- Employee benefits expense rose 8.7% YoY to ₹7,177 lakh, outpacing revenue growth by 5.8 percentage points.
- Depreciation rose 26.9% YoY to ₹3,498 lakh, substantially faster than revenue and weighing on EBIT and PAT.
Research and educational content only. Not investment advice.