Vinyl Chemicals (India) Ltd reported a 49% year-on-year increase in net profit to ₹6.62 crore for the first quarter ended June 30, 2026, driven by efficient cost management and favorable inventory adjustments. This profitability surge occurred despite a 34% decline in revenue from operations, highlighting the company’s ability to protect margins through reduced purchase costs and higher other income.

The Board of Directors approved the unaudited financial results on July 30, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by Mehul Gada & Associates, the statutory auditors. The company subsequently published extracts of these results in Business Standard and Tarun Bharat newspapers on July 31, 2026, as part of its regulatory disclosure obligations.

Financial Performance Highlights

Revenue from operations stood at ₹99.64 crore, down from ₹151.23 crore in the corresponding quarter of the previous year. However, total income decreased less sharply to ₹105.92 crore from ₹155.32 crore, aided by a rise in other income to ₹6.28 crore from ₹4.09 crore. Total expenses fell significantly to ₹97.03 crore from ₹149.30 crore, primarily due to a reduction in the purchase of traded goods and a ₹76.31 lakh decrease in inventories.

Note: All figures are in ₹ lakhs as per the source document.

Expenses included employee benefits which rose to ₹2.11 lakh from ₹1.43 lakh, while finance costs remained stable at ₹0.04 lakh. Foreign exchange difference expense increased slightly to ₹4.72 lakh from ₹3.87 lakh. The purchase of traded goods decreased to ₹165.75 lakh from ₹172.59 lakh, contributing to the overall cost reduction.

What the Numbers Show

The divergence between revenue contraction and profit expansion is notable. The net profit margin improved significantly, supported by non-operational gains from inventory decreases and lower operational costs. Earnings per share rose to ₹3.61 from ₹2.42 in the previous year, reflecting the enhanced bottom line. Tax expense for the quarter was ₹2.27 lakh, comprising current tax of ₹3.30 lakh and a deferred tax benefit of ₹1.03 lakh. The company operates in a single reportable segment, Trading in Chemicals, with no subsidiaries or joint ventures. Paid-up equity share capital remained unchanged at ₹1.83 lakh.

Vinyl Chemicals (India) Ltd. has declared a dividend of ₹7 per equity share for the financial year ended March 31, 2026, absorbing ₹12,83,59,777 from the current year's profit. Shareholders approved the payout at the 40th Annual General Meeting held on June 5, 2026. The company also secured shareholder approval to re-appoint Shri M.B. Parekh as Managing Director for a further period of five years starting April 1, 2027.

The meeting, conducted via video conferencing, saw the approval of seven resolutions. Shri M.B. Parekh’s re-appointment includes terms where his total remuneration shall not exceed 5% of the net profit of the financial year or limits permissible under Schedule V of the Companies Act, 2013. He will serve as a non-rotational Director and Key Managerial Personnel during his term.

Shareholders also sanctioned material related party transactions with Pidilite Industries Limited, the promoter company. The approval covers the sale of goods and materials for an aggregate value not exceeding ₹1300 Crores. This authorization is valid from April 1, 2026, until the conclusion of the Annual General Meeting for the financial year ending March 31, 2027.

The board received approval to pay commission to Non-Executive Directors, excluding the Managing Director and Whole-time Directors. This commission, capped at 1% per annum of net profits calculated under Sections 197 and 198 of the Companies Act, 2013, will be distributed for five years commencing April 1, 2027.

Shri P. D. Shah was re-appointed as an Independent Director for a second term of five consecutive years from October 6, 2026, to October 5, 2031. Additionally, Shri N. K. Parekh was re-appointed as a Director liable to retire by rotation. The remote e-voting and electronic voting results indicated that all resolutions were passed with the requisite majority.

Voting Results Summary