VST Industries margin slips as costs outpace sequential revenue decline
Lower tax helped limit the fall in net profit, while other income supplied 39.17% of pre-tax profit.
Filed 28 Oct 2026, 15:36 IST · after market close · VST Industries Ltd (VSTIND)
Key takeaways
- Standalone operating margin narrowed 1.45 percentage points sequentially to 17.92% as expenses fell 4.21% against a 5.90% revenue decline.
- Other income contributed 39.17% of profit before tax, making the Rs 41.04 cr net profit less dependent on operating earnings.
- The 17.92% operating margin remained 5.45 percentage points above the 12.47% median for 19 reported FMCG peers.
Price around the results
Sequential slowdown, with profit holding up better than operating earnings
VST Industries reported standalone revenue of Rs 241.32 cr in Q2FY27, down 5.90% sequentially, while operating profit fell 12.95% to Rs 43.24 cr. Net profit declined only 3.25% to Rs 41.04 cr because the tax rate fell 4.21 percentage points to 23.00%.
Cost growth explains the 1.45-point margin contraction
Expenses decreased 4.21%, but revenue declined faster at 5.90%, so operating margin narrowed from 19.37% to 17.92%. Other income rose 5.56% to Rs 20.88 cr and accounted for 39.17% of pre-tax profit, which was a significant support to reported earnings.
Margin remains above the reported FMCG peer median
VST Industries’ 17.92% operating margin was 5.45 percentage points above the 12.47% median among 19 FMCG peers that had reported the same quarter. The sequential margin decline is the first direction visible in the supplied two-quarter trend, but there is no year-on-year comparison in this release.
Results were filed after market close
The standalone results were filed at 15:36 IST on 28 October 2026, after the market close. No immediate market reaction is covered here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹241 cr | ₹256 cr | -5.90% |
| Other income | ₹21 cr | ₹20 cr | +5.56% |
| Expenses | ₹198 cr | ₹207 cr | -4.21% |
| Operating profit | ₹43 cr | ₹50 cr | -12.95% |
| Operating margin (%) | 17.92% | 19.37% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹11 cr | ₹11 cr | -3.13% |
| Profit before tax | ₹53 cr | ₹58 cr | -8.54% |
| Tax | ₹12 cr | ₹16 cr | -22.70% |
| Net profit | ₹41 cr | ₹42 cr | -3.25% |
| EPS (₹) | ₹2.41 | ₹2.50 | -3.60% |
Operating margin of 17.92% compares with a Fast Moving Consumer Goods sector median of 12.47% across 19 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.92% after the sequential decline.
- Whether expenses continue to grow faster than revenue after the current 4.21% versus 5.90% comparison.
- Whether other income remains near its current 39.17% share of pre-tax profit.