Vinyl Chemicals Q2 FY27 Results (NSE: VINYLINDIA)
Signal: Steady quarter
The read
The key inflection is a sharp Q2 rebound: revenue rose 43.9% YoY after the prior quarter's 20.3% growth, while PAT swung from a 44.9% YoY decline in Q1FY27 to 296.2% growth; however, 628 lakh of other income and negative operating cash flow of 2421 lakh mean the earnings recovery is not yet fully cash-backed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹218.57 Cr | +43.9% | +119.6% |
| Net profit | ₹11.41 Cr | +296.2% | |
| EPS | ₹6.24 | +294.9% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue was 21857 lakh, +43.9% YoY and +119.6% QoQ, while gross margin expanded to approximately 8.2% from 4.1% YoY as traded-goods cost fell to 83.7% of revenue from 96.1%; PAT rose to 1141 lakh from 288 lakh, aided by 628 lakh of other income.
Key positives
- Revenue increased to 21857 lakh, +43.9% YoY and +119.6% QoQ, accelerating from the prior quarter's +20.3% YoY growth.
- Gross margin expanded by approximately 410bps YoY to 8.2%, with traded-goods cost declining to 91.8% of revenue from approximately 95.9%.
- PAT rose 296.2% YoY to 1141 lakh and EPS rose 294.9% to ₹6.24, with unchanged paid-up capital of 183 lakh.
- Finance costs remained low at 14 lakh, or approximately 0.1% of revenue, despite rising 366.7% YoY.
Key concerns
- Operating cash flow was negative at 2421 lakh in H1FY27 despite H1 PAT of 1803 lakh, as inventories increased to 9130 lakh and receivables to 15039 lakh.
- Other income of 628 lakh increased 394.5% YoY and contributed materially to the 1529 lakh PBT, making the quality of the profit rebound dependent partly on non-operating income.
- The filing does not disclose chemical trading volumes, realisations or order metrics, limiting confirmation of whether the 43.9% revenue growth was volume-led or price/mix-led.
Research and educational content only. Not investment advice.