Vardhman Acrylics net profit surges 827% in Q1FY27 on lower costs
Vardhman Acrylics Limited reported a substantial surge in net profit to ₹16.22 crore in Q1FY27, up 827% year-on-year, aided by reduced input costs and higher operational volumes. Revenue from operations increased 12.8% to ₹78.25 crore.
*this image is generated using AI for illustrative purposes only.
Vardhman Acrylics Limited reported a net profit of ₹16.22 crore for the quarter ended June 30, 2026 (Q1FY27), marking an 827% year-on-year increase from ₹1.75 crore in the corresponding period of FY26. The company’s revenue from operations rose 12.8% to ₹78.25 crore, supported by higher sales volumes and improved pricing in its acrylic fibre segment. This strong performance highlights effective operational leverage as input costs moderated significantly compared to the prior year.
The Board of Directors approved the unaudited financial results on July 28, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subsequently ratified by the Board. Statutory Auditors SCV & Co. LLP issued an unmodified conclusion on the interim financial information, confirming adherence to Indian Accounting Standards (Ind AS).
Financial Performance Highlights
| Particulars | Q1FY27 (₹ Cr) | Q4FY26 (₹ Cr) | Q1FY26 (₹ Cr) | YoY Change |
|---|---|---|---|---|
| Revenue From Operations | 78.25 | 83.50 | 69.39 | +12.8% |
| Other Income | 3.98 | 4.34 | 3.66 | +8.7% |
| Total Income | 82.23 | 87.84 | 73.05 | +12.6% |
| Cost of Materials Consumed | 53.68 | 46.19 | 59.24 | -9.4% |
| Profit Before Tax | 20.92 | 13.68 | 2.30 | +809.6% |
| Net Profit After Tax | 16.22 | 15.59 | 1.75 | +827.4% |
| EPS (Basic) | ₹2.02 | ₹1.94 | ₹0.22 | +818.2% |
Revenue from operations stood at ₹78.25 crore in Q1FY27, up from ₹69.39 crore in Q1FY26 but slightly lower than the ₹83.50 crore reported in Q4FY26. Other income contributed ₹3.98 crore, a marginal decline from ₹4.34 crore in the preceding quarter. Total income for the period reached ₹82.23 crore.
What the Numbers Show
The dramatic improvement in profitability was primarily fueled by a decline in the cost of materials consumed, which fell to ₹53.68 crore from ₹59.24 crore in Q1FY26, despite the revenue increase. This indicates favorable input price dynamics or better procurement efficiency. Employee benefits expenses rose modestly to ₹5.75 crore from ₹5.10 crore year-ago, while finance costs remained negligible at ₹0.05 crore. The profit before tax expanded to ₹20.92 crore from ₹2.30 crore in the corresponding quarter last year, reflecting robust operating margins.
Tax expense for the quarter was ₹4.70 crore (current tax of ₹5.04 crore less deferred tax benefit of ₹0.34 crore), resulting in the final net profit figure. The company operates solely in the acrylic fibre segment with no subsidiaries, joint ventures, or associate companies. Earnings per share (basic and diluted) were ₹2.02, a significant jump from ₹0.22 in Q1FY26.
Historical Stock Returns for Vardhaman Acrylics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.52% | +1.84% | +3.43% | +19.53% | -2.09% | -32.07% |
Will the moderation in acrylic raw material costs persist into Q2FY27, or are rising global commodity prices expected to erode these margins?
How does Vardhman Acrylics plan to sustain the 12.8% revenue growth trajectory given the slight sequential decline from Q4FY26?
Are there any announced capacity expansion plans or new product launches that could drive volume growth beyond current operational leverage?
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