Vishnu Chemicals Q4 FY26 Results (NSE: VISHNU)
Signal: Margin expansion
The read
Margin inflected up for the 2nd consecutive quarter (OPM 17% vs 15% in Q2FY26 and 16% in Q3FY26), driven by input cost tailwind (raw material % of revenue fell ~500bps YoY). However, employee and selling costs rose faster than revenue (+27% and +29% YoY respectively), preventing full pass-through to EBITDA margin. The aggressive capex cycle (₹25,719 Lakh in FY26, 3x YoY) is enlarging the asset base but also ballooning net debt (+₹24,799 Lakh), which needs to be monitored for ROCE drag. Full-year FY26 revenue crossed ₹1,609 Cr (₹1,610 Cr) with PAT of ₹142 Cr, both record levels.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹450.31 Cr | 14.5% | 9.5% |
| EBIT | ₹64.15 Cr | 20.4% | |
| Net profit | ₹43.4 Cr | 11.6% | |
| EPS | ₹6.49 | 11.5% | |
| EBIT margin | 17.0% |
P&L walk
Revenue growth of 14.5% YoY was driven by 18.3% growth in overseas sales (₹18,245 Lakh) vs domestic 12.1% (₹26,538 Lakh), indicating strong export momentum. Gross margin expanded ~500bps YoY as raw material cost declined to 46.4% of revenue from 51.4% a year ago (tailwind). EBITDA margin at 17.0% expanded 100bps YoY but contracted from 18.1% in Q3FY26 — operating leverage not triggered as employee cost grew +27% YoY (+110bps as % of revenue). Finance cost fell 41.7% YoY to ₹487 Lakh, boosting PBT growth (+20.4%). PAT at ₹4,340 Lakh (+11.6% YoY) was partly aided by a lower tax rate (effective 32.3% vs 26.9% in Q4FY25). EPS at ₹6.49 tracked PAT growth.
Segments
Single operating segment (specialty chemicals) — geographical split shows export revenue outpacing domestic (18.3% vs 12.1% YoY in Q4), now 41% of total sales.
Key positives
- Revenue growth of 14.5% YoY with overseas segment growing 18.3% (export momentum strong)
- Raw material cost as % of revenue fell to 46.4% from 51.4% YoY — input cost tailwind driving gross margin expansion of ~468bps
- 2nd consecutive quarter of YoY margin expansion (OPM 17% vs 16% in Q3FY26 vs 13% in Q2FY26)
- Finance costs down 41.7% YoY — significant debt servicing improvement
- Full-year FY26 revenue of ₹1,610 Cr and PAT of ₹142 Cr at record levels
Key concerns
- Employee costs grew 27% YoY (₹21.5 Cr vs ₹17.0 Cr) — outpacing revenue growth, adding 110bps to cost ratio
- Selling & administrative expenses grew 28.5% YoY (₹54.8 Cr vs ₹42.6 Cr) — eating into margin gains
- Aggressive capex (₹257 Cr in FY26 vs ₹88 Cr in FY25) funded via borrowings — net debt up ₹248 Cr YoY to ₹635 Cr
- Effective tax rate rose to 32.3% from 26.9% in Q4FY25 — a 540bps headwind for PAT
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