Vidhi Specialty Food Ingredients Reports Mixed Q2 Results with Revenue Decline but Improved Margins

Vidhi Specialty Food Ingredients Limited has announced its financial results for the second quarter ended September 30, 2025, revealing a mixed performance with decreased revenue but improved profitability margins.

Key Financial Highlights

Particulars (₹ in Crores)	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	75.00	91.30	-17.85%
EBITDA	17.70	15.20	+16.45%
EBITDA Margin	23.60%	16.60%	+700 bps
Profit After Tax (PAT)	10.60	10.30	+2.91%
PAT Margin	14.10%	11.30%	+280 bps

Revenue Decline

The company reported a consolidated revenue of ₹75.00 crores for Q2 FY26, down 17.85% year-on-year from ₹91.30 crores in the same quarter last year. This decline was primarily attributed to reduced intercompany transfer sales between Vidhi-Roha and Vidhi-Dahej facilities.

Improved Profitability

Despite the revenue drop, Vidhi Specialty Food Ingredients managed to improve its profitability:

EBITDA increased by 16.45% to ₹17.70 crores, with the EBITDA margin expanding significantly from 16.60% to 23.60%.
Profit after tax grew by 2.91% to ₹10.60 crores, with the PAT margin improving from 11.30% to 14.10%.

The company's management attributed the enhanced profitability to an improved portfolio mix.

Dividend Declaration

The Board of Directors has declared a second interim dividend of ₹1.50 per share (150%) for the financial year 2025-26, amounting to a total payout of ₹7.49 crores.

Operational Update

Vidhi Specialty Food Ingredients successfully commenced production at its Dahej SEZ plant in December 2023. This expansion has added 350 TPM capacity, bringing the company's total capacity to 675 TPM.

Market Position

The company maintains its position as Asia's largest food color manufacturer, with a presence in over 80 countries.

Future Outlook

While the company faces challenges in terms of revenue growth, the improved profitability and strategic capacity expansion suggest a focus on enhancing operational efficiency and market reach. The management's ability to improve margins despite lower sales indicates a robust business model capable of adapting to market dynamics.

Investors and stakeholders will likely monitor how Vidhi Specialty Food Ingredients leverages its expanded capacity and global presence to drive future growth, particularly in light of the current revenue headwinds.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+8.75%	+15.05%	+4.16%	-15.70%	-24.25%	+186.61%

Vidhi Specialty Food Ingredients Limited has unveiled plans for growth, focusing on backward integration and capacity expansion at its Dahej plant. The company, which specializes in food colors and chemicals, aims to strengthen its position in the global market through strategic initiatives and product innovation.

Financial Performance

For the quarter ended September 30, Vidhi Specialty reported consolidated revenue from operations of ₹75.66 crore, compared to ₹92.06 crore in the same quarter of the previous year. Despite the decrease in revenue, the company improved its profitability:

Metric (₹ in crore)	Q2 FY26	Q2 FY25	YoY Change
Revenue	75.66	92.06	-17.81%
EBITDA	17.70	15.20	+16.45%
Profit After Tax	10.60	10.30	+2.91%

The company's EBITDA margin improved to 23.6% in Q2 FY26, up from 16.6% in Q2 FY25, indicating enhanced operational efficiency.

Growth Strategies

Vidhi Specialty is implementing several strategies to drive future growth:

Backward Integration: The company plans to strengthen its supply chain and reduce costs through backward integration initiatives.
Capacity Expansion: Expansion is underway at the Dahej plant, which is expected to increase the company's total capacity from 325 TPM to 1000 TPM.
Product Portfolio Enhancement: Vidhi is launching new products in the natural colors segment, aiming to capture a larger market share in this growing category.
Global Expansion: The company is scaling its presence across more than 90 countries, leveraging its diverse product range and quality standards.
Focus on High-Margin Products: There is a strategic emphasis on enhancing the natural color portfolio, which typically offers higher margins.
R&D and Innovation: Continued investment in research and development is expected to drive innovation and cater to premium food and beverage demand.

Dividend Announcement

The Board of Directors has declared a second interim dividend of ₹1.50 per equity share (150%) for the financial year 2025-26, amounting to a total payout of ₹7.49 crore.

Market Outlook

Vidhi Specialty is positioning itself to capitalize on the growing global demand for food colors and specialty ingredients. The company's focus on natural colors aligns with consumer trends towards clean label and natural products.

Chairman and Managing Director Bipin M. Manek stated, "Our strategic initiatives are aimed at enhancing our manufacturing capabilities and expanding our global footprint. We are confident that our focus on innovation and quality will drive sustainable growth in the coming years."

As Vidhi Specialty Food Ingredients Limited implements these growth strategies, investors and industry observers will be watching closely to see how the company navigates market challenges and capitalizes on opportunities in the evolving food ingredients sector.