Vinati’s Q4 profit rises despite lower sales; stock falls 4.08%
Costs fell faster than revenue year on year, but the sequential margin slipped 0.40 percentage points as expenses grew faster than sales.
Filed 12 May 2026, 15:13 IST · Vinati Organics Ltd (VINATIORGA)
Key takeaways
- Standalone Q4FY26 revenue fell 5.84% year on year, but operating margin expanded 1.68 percentage points as expenses declined 8.06%.
- Sequentially, expenses grew 16.05% against 15.39% revenue growth, extending the margin decline to 29.99% from 32.70% in Q2FY26.
- Net profit rose 7.79% year on year, while the stock fell 4.08% on results day against a 1.98% median move after its past eight results.
Price around the results
Profit held up despite a year-on-year revenue decline
Vinati Organics reported standalone revenue of Rs 610.55 cr, down 5.84% year on year, while operating profit was almost unchanged, declining 0.25%. Expenses fell 8.06%, faster than revenue, limiting the effect of lower sales on operating profit. Net profit rose 7.79% to Rs 137.51 cr, helped by the lower cost base and other income.
Sequential growth came with a small margin setback
Revenue increased 15.39% sequentially, but expenses grew faster at 16.05%, narrowing operating margin by 0.40 percentage points to 29.99%. This was the second consecutive quarterly decline, from 32.70% in Q2FY26 to 30.39% in Q3FY26 and 29.99% in Q4FY26. Other income accounted for 11.47% of pre-tax profit, while the tax rate fell 2.34 percentage points sequentially to 23.05%, supporting reported profit.
Margin remains above the commodities peer median
Vinati’s 29.99% operating margin was 11.22 percentage points above the 18.77% median for the 51 commodities-sector peers that had reported the same quarter. The year-on-year margin improvement therefore came alongside a sequential loss of momentum, rather than a broad deterioration in its relative position.
The market reaction was weaker than Vinati’s usual results-day move
The stock fell 4.08% on the results day and was down 5.97% in the next session, with a five-day relative return of -2.15%. The immediate decline was larger than the 1.98% median absolute move recorded after the company’s past eight results. Those outcomes include five declines and three rises, so the negative reaction was directionally familiar but unusually large.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹611 cr | ₹529 cr | +15.39% | -5.84% |
| Other income | ₹21 cr | ₹9 cr | +131.90% | +233.88% |
| Expenses | ₹427 cr | ₹368 cr | +16.05% | -8.06% |
| Operating profit | ₹183 cr | ₹161 cr | +13.87% | -0.25% |
| Operating margin (%) | 29.99% | 30.39% | — | — |
| Interest | ₹0 cr | ₹0 cr | +100.00% | -87.50% |
| Depreciation | ₹25 cr | ₹24 cr | +2.64% | +23.44% |
| Profit before tax | ₹179 cr | ₹145 cr | +22.91% | +5.50% |
| Tax | ₹41 cr | ₹37 cr | +11.57% | -1.48% |
| Net profit | ₹138 cr | ₹108 cr | +26.77% | +7.79% |
| EPS (₹) | ₹13.26 | ₹10.46 | +26.77% | +7.72% |
Operating margin of 29.99% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.08% | -2.25% |
| Next session | -5.97% | — |
| 5 sessions | -2.98% | -2.15% |
| 15 sessions | -4.79% | — |
| 30 sessions | +1.11% | — |
Volume on the results session was 0.99× its 20-day average.
What to watch
- Whether operating margin stabilises after falling from 32.70% in Q2FY26 to 30.39% in Q3FY26 and 29.99% in Q4FY26.
- Whether expenses continue to grow faster than revenue after the sequential gap of 16.05% versus 15.39%.
- Whether other income remains near 11.47% of pre-tax profit and the tax rate near 23.05%.