Vesuvius India Q3 FY26 Results (NSE: VESUVIUS)
Signal: Margin pressure
The read
The trajectory remains margin-led downside: Q3 revenue grew 3.6% YoY to ₹56,684 lakh, but gross margin compressed 480bps to 39.8% as raw-material-related costs rose to 60.2% of revenue, pulling EBITDA margin down 140bps to 16.8% and PAT down 7.2% to ₹5,710 lakh; this extends the H1FY26 pattern of revenue growth with earnings pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹566.84 Cr | +3.6% | +5.7% |
| Net profit | ₹57.1 Cr | -7.2% | |
| EPS | ₹2.82 | -6.9% | |
| EBIT margin | 16.8% |
P&L walk
Q3 standalone revenue increased 3.6% YoY, but gross margin fell 480bps to 39.8% as cost of materials, purchases and inventory changes rose to 60.2% of revenue from 55.4%; the resulting EBITDA margin declined 140bps to 16.8% and PAT fell 7.2%.
Key positives
- Revenue increased 3.6% YoY to ₹56,684 lakh and 5.7% QoQ, indicating continued top-line expansion despite margin pressure.
- Finance costs remained low at ₹31 lakh, up only 3.3% YoY, limiting balance-sheet drag on earnings.
- EPS of ₹2.82 declined 6.9% YoY versus a 7.2% PAT decline, a clean PAT-to-EPS conversion with no visible dilution.
Key concerns
- Gross margin compressed 480bps YoY to 39.8% as cost of materials, purchases and inventory changes increased to 60.2% of revenue from 55.4%; revenue grew only 3.6%, indicating substantial cost absorption.
- EBITDA margin declined 140bps YoY to 16.8% and PAT fell 7.2% to ₹5,710 lakh, extending the H1FY26 earnings-pressure trend.
- Raw material cost alone rose to 43.9% of revenue from 37.8% YoY, while revenue increased 3.6%; volume and pricing data were not disclosed to establish pass-through.
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