Vinyl Chemicals (India) Ltd delivered strong quarterly performance in Q3FY26, reporting significant growth in profitability despite challenging market conditions. The chemical trading company announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing robust revenue growth and improved operational efficiency.

Strong Q3FY26 Performance

The company demonstrated impressive quarterly results with key financial metrics showing substantial improvement over the previous year:

The revenue growth of 15.8% reflects the company's strong market position in chemical trading operations. Total income increased by 15.1% to ₹17,196 lakhs, driven primarily by higher revenue from operations and improved other income.

Expense Management and Profitability

Total expenses for Q3FY26 rose to ₹16,581 lakhs compared to ₹14,278 lakhs in Q3FY25, primarily due to increased purchase of traded goods which reached ₹12,981 lakhs. The company also recorded higher employee benefit expenses of ₹334 lakhs compared to ₹122 lakhs in the previous year, partly attributed to the impact of new Labour Codes implemented by the Government of India.

Key Expense Components:

• Purchase of traded goods: ₹12,981 lakhs (vs ₹14,229 lakhs in Q3FY25)
• Employee benefits expense: ₹334 lakhs (vs ₹122 lakhs in Q3FY25)
• Other expenses: ₹285 lakhs (vs ₹69 lakhs in Q3FY25)
• Foreign exchange difference: ₹73 lakhs expense (vs ₹261 lakhs expense in Q3FY25)

Nine-Month Performance Analysis

While quarterly results showed mixed performance, the nine-month period revealed different trends:

The nine-month performance showed revenue growth of 4.5% but net profit declined by 21.3% to ₹1,185 lakhs, indicating margin pressure during the period.

Labour Code Impact and Regulatory Changes

The company disclosed the impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidated 29 existing labour laws and resulted in incremental costs of ₹185.54 lakhs, comprising gratuity provisions of ₹140.57 lakhs and long-term compensated absences of ₹44.97 lakhs. This impact was reflected in the employee benefit expenses for Q3FY26.

Financial Position and Operations

Vinyl Chemicals maintains a focused business model with chemical trading as its primary reportable segment. The company operates without subsidiaries, associates, or joint venture companies, maintaining a streamlined corporate structure. The paid-up equity share capital remained stable at ₹183 lakhs with a face value of Re.1 per share.

Corporate Governance:

• Board meeting held on January 20, 2026 (12:00 noon to 1:18 pm)
• Results reviewed by Audit Committee and approved by Board
• Limited review conducted by statutory auditors Mehul Gada & Associates
• Compliance with Regulation 33 of SEBI Listing Regulations

The company continues to monitor developments in Central and State Rules related to Labour Codes and will provide appropriate accounting treatment as regulations are finalized.

Vinyl Chemicals (India) Limited , a company primarily engaged in chemical trading, has released its unaudited financial results for the second quarter and half year ended September 30, 2025. The report reveals a significant decline in quarterly profit despite relatively stable revenue.

Key Financial Highlights

Quarterly Performance

The company's revenue from operations for Q2 2025 stood at ₹15,189 lakhs, showing a marginal increase of 1.03% compared to ₹15,034 lakhs in the same quarter last year. However, the quarterly profit saw a substantial decline of 43.86%, dropping to ₹288 lakhs from ₹513 lakhs in Q2 2024.

Half-Yearly Results

For the six-month period, Vinyl Chemicals reported a 27.06% decrease in profit, falling to ₹733 lakhs from ₹1,005 lakhs in the corresponding period last year. The half-yearly revenue also saw a slight decrease of 0.93%, dropping to ₹30,312 lakhs from ₹30,597 lakhs.

Corporate Governance

The Board of Directors of Vinyl Chemicals approved these financial results at their meeting held on October 27, 2025. As per the LODR (Listing Obligations and Disclosure Requirements) data, the board meeting commenced at 10:15 a.m. and concluded at 11:13 a.m.

Market Impact

The significant decline in quarterly profit, despite stable revenue, may raise questions among investors about the company's operational efficiency and cost management strategies. The chemical trading sector, in which Vinyl Chemicals operates, might be facing challenges that are impacting profitability while maintaining sales volumes.