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Vinyl Chemicals Q2 Shock: Profit Plunges 44% Despite Revenue Growth

Vinyl Chemicals has reported a sharp 44% drop in quarterly profit despite slight revenue growth. The company's bottom line was hit hard by rising expenses that outpaced their modest revenue increase. For the first half of the financial year, profits have declined by over 27% compared to the previous year. The chemical trading company, part of the Parekh Group, continues to face margin pressures in its core business operations.

Key Points: Vinyl Chemicals Q2 Net Profit Falls 44 Percent to Rs 2.88 Crore

  • Q2 net profit fell 44% to Rs 2.88 crore amid rising operational costs
  • Revenue grew marginally by 1.03% to Rs 151.89 crore during the quarter
  • Total expenses increased to Rs 149.28 crore, squeezing profit margins significantly
  • Half-year profit declined 27% to Rs 7.33 crore despite flat revenue performance
2 min read

Mumbai-based Vinyl Chemicals' Q2 net profit falls 44 pc

Mumbai-based Vinyl Chemicals reports 44% profit drop to Rs 2.88 crore in Q2 FY26 despite marginal revenue growth, as rising expenses impact earnings.

"The company’s net profit declined to Rs 2.88 crore in Q2 FY26, compared to Rs 5.13 crore in the same quarter last financial year - Company Filing"

Mumbai, Oct 27

Vinyl Chemicals (India) Limited on Monday reported a sharp fall of 43.86 per cent in its profit for the second quarter of FY2026 (Q2 FY26).

The Mumbai-based company’s net profit declined to Rs 2.88 crore in Q2 FY26, compared to Rs 5.13 crore in the same quarter last financial year (Q2 FY25), according to its stock exchange filing.

Revenue from operations rose slightly by 1.03 per cent to Rs 151.89 crore, up from Rs 150.34 crore in Q2 FY25.

However, higher expenses weighed on the company’s bottom line. Total expenses for the quarter increased to Rs 149.28 crore from Rs 144.44 crore a year earlier, as per its regulatory filing.

Earnings per share (EPS) also fell to Rs 1.58 in Q2, compared to Rs 2.80 in the corresponding quarter last financial year -- a drop of about 43.57 per cent.

For the half-year ended September 2025, the company posted a profit of Rs 7.33 crore, down 27.06 per cent from Rs 10.05 crore in the first half of the previous financial year.

Revenue for the six-month period slipped marginally by 0.93 per cent to Rs 303.12 crore, the company said in its filing.

The company’s Board of Directors approved these financial results at its meeting held on October 27.

Vinyl Chemicals (India) Limited, incorporated in 1986, is part of the Parekh Group. The company is primarily engaged in trading Vinyl Acetate Monomer (VAM), which is used in industries such as paints, adhesives, and textiles.

It imports chemicals from global suppliers and distributes them across India. The company is listed on the Bombay Stock Exchange (BSE) and follows established corporate governance practices.

The shares were trading flat at Rs 282.65, up by Rs 0.55 or 0.19 per cent. In last five days, the shares have delivered flat return of Rs 0.35 or 0.12 per cent to investors.

In last one month, the shares have delivered a negative return of Rs 4 or 1.39 per cent, as per the official data.

- IANS

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Reader Comments

P
Priya S
As someone who works in the chemical industry, I can say that raw material costs have been volatile globally. VAM prices fluctuate a lot depending on international markets. Maybe that's impacting their margins?
A
Aman W
The stock has been flat for weeks and now this result. Time to exit this position. Better opportunities in other chemical stocks that are showing growth. 🤔
S
Sarah B
Let's not be too harsh. The company is still profitable, just less so. The chemical industry faces many challenges including import duties and currency fluctuations. They might bounce back next quarter.
K
Karthik V
EPS dropped from ₹2.80 to ₹1.58 - that's quite significant for retail investors like me. Hope the management has a clear turnaround strategy. The AGM should address these concerns properly.
M
Michael C
Being part of Parekh Group, they should have better cost controls. The Board needs to take responsibility for this performance. Shareholders deserve better governance and transparency. 👍

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