Vinati Organics Q1 FY27 Results (NSE: VINATIORGA)
Signal: Margin expansion
The read
5th consecutive quarter of margin expansion (OPM +430bps YoY to 30.2%) driven by input cost tailwind (cost of materials % down 520bps), while consolidated revenue remained flat YoY at ₹695.91 Cr — volume growth offset by likely realisation decline. PAT growth (+4.5%) capped by higher depreciation and a normalised tax rate.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹695.91 Cr | 0.0% | 15.2% |
| EBIT | ₹147.75 Cr | 4.7% | |
| Net profit | ₹108.85 Cr | 4.5% | |
| EPS | ₹10.5 | 4.5% | |
| EBIT margin | 21.2% |
P&L walk
Revenue flat YoY, but gross margin expanded sharply on input cost deflation (raw material % down 520bps), flowing through to OPM +430bps; PAT growth capped by higher tax.
Key positives
- OPM expanded 430bps YoY to 30.2% — 5th consecutive quarter of margin expansion (from 23% in Q2FY24).
- Gross margin improved 520bps YoY as raw material cost % fell from 59.9% to 54.7% — sustained input cost tailwind.
- Company remains debt-free (finance cost negligible at ₹0.01 Cr).
- Standalone PAT recovered sharply (₹123.56 Cr vs ₹12.78 Cr in Q1FY26 low base).
Key concerns
- Consolidated revenue flat YoY at ₹695.91 Cr — no top-line growth despite margin tailwind.
- Depreciation rose 24.2% YoY — capex going live but not yet driving revenue growth.
- Effective tax rate higher YoY (current + deferred tax up from ₹36.97 Cr to ₹38.90 Cr) capping PAT growth.
- Consolidated PAT of ₹108.85 Cr fell 12.1% QoQ from Q4FY26 (₹123.86 Cr) — sequential dip despite margin expansion.
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