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 a 51% surge in revenue from operations to ₹99.64 crore. The growth was primarily fueled by a ₹76.31 lakh decrease in inventories of traded goods and a substantial rise in other income, which more than offset higher purchase costs and foreign exchange expenses.

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 of the company. The figures for the previous quarter ended March 31, 2026, are balancing figures between audited full-year results and published year-to-date data.

Financial Performance Highlights

Revenue from operations stood at ₹99.64 lakh, compared to ₹151.23 lakh in the same quarter last year. Total income increased to ₹105.92 lakh from ₹155.32 lakh in Q1FY26. Other income saw a sharp rise to ₹6.28 lakh from ₹4.09 lakh in the prior year period, while purchase of traded goods decreased slightly to ₹165.75 lakh from ₹172.59 lakh.

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

Expenses totaled ₹97.03 lakh, down from ₹149.30 lakh in the corresponding quarter of the previous year. The decrease in expenses was largely due to a reduction in purchase of traded goods and favorable inventory adjustments. Employee benefit expenses rose to ₹2.11 lakh from ₹1.43 lakh, while finance costs remained stable at ₹0.04 lakh. Foreign exchange difference expense increased to ₹4.72 lakh from ₹3.87 lakh.

What the Numbers Show

The company’s profitability improvement is notable despite a decline in top-line revenue. The net profit margin expanded significantly, aided by the non-operational gain from inventory decreases and lower overall operational costs. This divergence between revenue contraction and profit expansion suggests efficient cost management or favorable working capital movements during the quarter. Earnings per share rose to ₹3.61 from ₹2.42 in the previous year, reflecting the improved bottom line.

Tax expense for the quarter was ₹2.27 lakh, comprising current tax of ₹3.30 lakh and deferred tax benefit of ₹1.03 lakh. The company operates in a single reportable segment, Trading in Chemicals, and has no subsidiaries, associates, 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