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Vinati Organics Q3 profit dips 12% to Rs 101 cr amid softer demand

Vinati Organics reported a 12.2% year-on-year decline in net profit for the December quarter, amounting to Rs 101 crore. Revenue also slipped by 3.5% to Rs 531 crore, as softer market conditions impacted performance. Despite the quarterly dip, the company maintains an optimistic medium-term outlook, expecting a 15% production volume increase in FY26. Managing Director Vinati Saraf Mutreja noted that revenue growth is projected at 10-12% with a conservative margin outlook of around 27%.

Key Points: Vinati Organics Q3 profit falls 12% to Rs 101 crore

  • Q3 net profit fell 12.2% to Rs 101 crore
  • Revenue declined 3.5% to Rs 531 crore
  • EBITDA dropped 5.2% to Rs 157.5 crore
  • Medium-term outlook optimistic with 15% volume growth expected in FY26
2 min read

Vinati Organics' Q3 net profit falls 12 pc to Rs 101 crore on softer demand

Vinati Organics reports 12.2% drop in Q3 net profit to Rs 101 crore. Revenue declines 3.5% amid softer market conditions and product prices.

"revenue growth is likely to be slightly lower, in the range of 10 to 12 per cent, due to softer product prices - Vinati Saraf Mutreja"

Mumbai, Jan 31

Specialty chemicals manufacturer Vinati Organics on Saturday reported a 12.2 per cent year-on-year decline in its financial performance for the December quarter, as softer market conditions weighed on earnings.

The company's net profit fell to Rs 101 crore in the third quarter, compared to Rs 115 crore in the same period last financial year.

Revenue also declined, slipping 3.5 per cent to Rs 531 crore from Rs 550 crore a year earlier, according to its stock exchange filing.

Operating performance remained under some pressure during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 5.2 per cent to Rs 157.5 crore, while operating margins eased slightly to 29.7 per cent from 30.2 per cent in the year-ago period.

Despite the softer quarterly numbers, the company remains optimistic about its medium-term growth outlook.

Vinati Organics has earlier said it expects production volumes to increase by around 15 per cent in FY26, supported by capacity expansion and the commissioning of its new acrylamide tertiary butyl sulfonic acid (ATBS) manufacturing line.

Managing Director Vinati Saraf Mutreja said revenue growth is likely to be slightly lower, in the range of 10 to 12 per cent, due to softer product prices.

She added that the company is maintaining a conservative margin outlook of around 27 per cent as it expands into new markets and launches new products.

Shares of Vinati Organics Limited closed higher on Friday, gaining 1.80 per cent to settle at Rs 1,523.50 on the National Stock Exchange (NSE).

Vinati Organics Limited (VOL), established in 1989 and headquartered in Mumbai, is a global leader in the specialty chemicals and organic intermediates segment.

The company is the world's largest manufacturer of Isobutyl Benzene (IBB) and 2-Acrylamido-2-Methylpropane Sulfonic Acid (ATBS).

Vinati Organics exports its products to more than 35 countries, serving customers across the US, Europe and Asia, with a strong focus on quality-driven and sustainable chemical manufacturing.

- IANS

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Reader Comments

P
Priya S
It's impressive that they're still maintaining nearly 30% operating margins even in a softer market. That shows strong fundamentals. The management's conservative outlook (27% margin, 10-12% growth) seems realistic and not overhyped. Good to see an Indian company being a global leader in its niche.
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Aman W
Quarterly ups and downs happen. The key is their export strength to 35+ countries. That diversification will help them weather regional slowdowns. The focus on sustainable manufacturing is also a big plus for future regulations. Holding my shares for the long term.
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Sarah B
While the management sounds optimistic, a decline in both revenue and profit can't be ignored. It would be helpful if future reports gave more color on which specific markets or product lines are seeing "softer demand." Transparency is key for investor trust.
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Vikram M
This is a classic case of a strong company facing a cyclical downturn. The chemical industry is like that. Their expansion plans are solid. 15% volume growth target for FY26 is ambitious but achievable if the global economy picks up. Jai Hind! 🇮🇳
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Kriti O
As a small investor, I find these numbers a bit worrying for the short term. The stock price increase seems disconnected from the quarterly result. Maybe it's already priced in? Will wait for the next quarter before making any new investment.

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