Valiant Organics Limited shares gained momentum following the company's announcement of significant margin improvements in its Q3FY26 results. The specialty chemicals manufacturer reported a remarkable 500 basis points expansion in gross margin to 43%, while maintaining EBITDA margin at 11.82% for the nine-month period, demonstrating strong operational efficiency amid market challenges.

Share Price Movement and Market Response

The company's shares witnessed positive movement as investors responded favorably to the substantial margin expansion. The 500 basis points improvement in gross margin to 43% highlighted management's successful cost optimization and pricing discipline strategies, reinforcing investor confidence in the company's operational capabilities.

Q3FY26 Financial Performance

The company's third-quarter results reflected resilience despite revenue pressures, with key metrics showing mixed performance across operational parameters.

Despite revenue declining year-on-year, the company maintained margin discipline with EBITDA margin expanding by 155 basis points to 9.79%. The quarter was supported by exceptional income of INR 57 million from insurance claim refunds.

Nine-Month FY26 Performance Shows Strong Recovery

The cumulative nine-month performance demonstrated the company's successful turnaround strategy, with the gross margin expansion of 500 basis points being a key highlight.

The nine-month results showcased substantial operational improvements, with EBITDA increasing 84.4% year-on-year and margins expanding by over 500 basis points. The company achieved a strong turnaround in profitability, moving from a loss of INR 76 million in 9M-FY25 to a profit of INR 175 million.

Chemistry-wise Revenue Performance

The company's diversified chemistry portfolio showed varied performance across different segments during Q3FY26, with operational efficiency improvements visible across all verticals.

Hydrogenation remained the largest revenue contributor at 43% of total revenue, followed by Ammonolysis at 28% and Chlorination at 23%. While all segments experienced revenue decline year-on-year, the significant margin expansion indicated improved operational efficiency across all chemistry verticals.

Operational Excellence and Market Position

The company's operational performance reflected successful implementation of cost optimization strategies and pricing discipline. The gross profit margin expansion of over 500 basis points to 43% for the nine-month period, compared to 38% in 9M-FY25, demonstrated enhanced operational efficiency and strategic focus on value-added products.

Valiant Organics operates six manufacturing units across five locations with a total production capacity of 70,000 TPA. The company continues to serve diversified end-user industries including Dyes & Pigments (52% of revenue), Agro Chemicals (25%), Pharmaceuticals (13%), and Specialty Chemicals (10%), providing stability and growth opportunities across market cycles.

Valiant Organics Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, following the Board of Directors meeting held on February 13, 2026. The company reported a net profit of ₹606.36 lakhs for Q3FY26, marking a significant improvement of 30.52% from ₹464.60 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's standalone financial results demonstrate mixed operational performance during the quarter. While revenue from operations declined to ₹15,906.97 lakhs in Q3FY26 from ₹18,685.71 lakhs in Q3FY25, the company achieved improved profitability through better cost management and exceptional gains.

Nine Months Performance Turnaround

For the nine months ended December 31, 2025, the company achieved a remarkable turnaround with net profit of ₹1,923.82 lakhs compared to a net loss of ₹695.44 lakhs in the corresponding period of the previous year. This represents a complete reversal of fortunes for the chemical manufacturer.

Exceptional Items and Insurance Settlement

A significant highlight of the quarter was the recognition of exceptional gain of ₹572.08 lakhs. The company received ₹852.76 lakhs towards fire insurance claim settlement relating to the Sarigam Division fire incident from FY 2022-23. Out of this amount, ₹572.08 lakhs was recognized under exceptional items during the period, with the balance appropriately accounted for in the financial statements.

Consolidated Results and Corporate Actions

The consolidated results showed net profit of ₹364.45 lakhs for Q3FY26 compared to ₹546.41 lakhs in Q3FY25. For nine months, consolidated net profit reached ₹1,750.92 lakhs against a loss of ₹762.46 lakhs in the previous year.

The Board meeting commenced at 12:45 PM IST and concluded at 4:02 PM IST on February 13, 2026. The company operates as a single segment engaged in manufacturing chemicals business and has fulfilled its regulatory obligations under Regulation 33 and 30 of the SEBI Listing Regulations.