Vinati Organics margin falls for a third quarter despite 28.40% sales growth
Costs grew faster than revenue both year on year and sequentially, while a higher tax rate and lower other income pulled profit below the previous quarter.
Filed 29 Jul 2026, 13:32 IST · Vinati Organics Ltd (VINATIORGA)
Key takeaways
- Revenue grew 28.40% year on year, but expenses rose 37.44%, cutting operating margin by 4.96 percentage points.
- Net profit increased only 4.48% year on year to Rs 108.86 cr as higher costs offset sales growth.
- Operating margin fell to 24.50%, its third consecutive quarterly decline, though it remained 7.18 percentage points above the 27-peer sector median.
Price around the results
Sales growth did not translate into operating profit
Consolidated revenue rose 28.40% year on year and 15.23% sequentially, but operating profit grew only 6.76% year on year and 0.12% sequentially. Expenses increased 37.44% year on year and 21.17% sequentially, so operating margin narrowed by 4.96 percentage points year on year and 3.70 percentage points from Q4FY26.
Tax and other income amplified the sequential profit decline
Net profit rose 4.48% year on year, well below revenue growth, as the faster increase in expenses absorbed most of the operating gain. Sequentially, net profit fell 12.11% because other income dropped 55.86% and the tax rate rose 3.65 percentage points; other income accounted for 6.09% of profit before tax, so it was a meaningful but limited contributor to reported profit.
Margin is now below its recent quarterly peak
Operating margin has declined from 30.41% in Q2FY26 to 29.50% in Q3FY26, 28.20% in Q4FY26 and 24.50% now, marking three straight quarterly declines. Even after that compression, Vinati Organics was 7.18 percentage points above the median operating margin of 17.32% among 27 reported Commodities-sector peers.
The stock has usually fallen after recent results
The stock's reaction to the latest results is not yet available. Across the previous eight result reactions, it rose twice and fell six times, with a median absolute move of 1.98%; the recent moves ranged from -4.08% to +2.45%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹696 cr | ₹604 cr | +15.23% | +28.40% |
| Other income | ₹9 cr | ₹20 cr | -55.86% | +21.79% |
| Expenses | ₹525 cr | ₹434 cr | +21.17% | +37.44% |
| Operating profit | ₹170 cr | ₹170 cr | +0.12% | +6.76% |
| Operating margin (%) | 24.50% | 28.20% | — | — |
| Interest | ₹0 cr | ₹0 cr | -50.00% | -97.30% |
| Depreciation | ₹32 cr | ₹30 cr | +4.14% | +24.15% |
| Profit before tax | ₹148 cr | ₹160 cr | -7.77% | +4.68% |
| Tax | ₹39 cr | ₹36 cr | +7.04% | +5.22% |
| Net profit | ₹109 cr | ₹124 cr | -12.11% | +4.48% |
| EPS (₹) | ₹10.50 | ₹11.95 | -12.13% | +4.48% |
Operating margin of 24.50% compares with a Commodities sector median of 17.32% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 24.50% after three consecutive quarterly declines.
- Whether expense growth moderates from 37.44% year on year.
- Whether other income's 6.09% share of profit before tax changes materially.