Vinyl Chemicals (India) Limited , a prominent player in the chemical trading sector, has reported a decrease in both net profit and revenue for the first quarter of the fiscal year 2026. The company's financial performance shows a year-over-year decline, reflecting challenges in the current market environment.

Financial Highlights

• Net Profit: ₹44.50 crore in Q1 FY2026, down from ₹49.20 crore in Q1 FY2025
• Revenue: ₹1,512.30 crore in Q1 FY2026, decreased from ₹1,556.30 crore in Q1 FY2025

Detailed Financial Performance

According to the unaudited financial results approved by the Board of Directors on July 30, 2025, Vinyl Chemicals demonstrated the following performance:

Key Observations

1. Revenue Decline: The company's revenue from operations decreased by 2.83% year-over-year, aligning with the reported overall revenue decline.

2. Profit Margin Pressure: Despite a slight decrease in total expenses, the profit before tax saw a more significant decline of 10.55%, indicating pressure on profit margins.

3. Other Income Boost: A substantial increase in other income (from ₹78.00 lakhs to ₹409.00 lakhs) helped mitigate the impact of lower operational revenue.

4. Earnings Per Share: The basic and diluted earnings per share decreased from ₹2.68 in Q1 FY2025 to ₹2.42 in Q1 FY2026, reflecting the lower profitability.

Market Position

Vinyl Chemicals (India) Limited continues to focus on its core business of trading in chemicals. The company's performance in this quarter reflects the challenges faced in the chemical trading sector, possibly due to market dynamics and economic factors affecting the industry.

Corporate Governance

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on July 30, 2025. M/s. Mehul Gada & Associates, the statutory auditors of the company, have carried out a limited review of the financial results for the quarter ended June 30, 2025.

As Vinyl Chemicals navigates through these challenging times, stakeholders will be keenly watching how the company adapts its strategies to improve its financial performance in the coming quarters.

Vinyl Chemicals has released its financial results for the fourth quarter, showcasing a mixed performance with notable improvements in some areas.

Financial Highlights

EBITDA Growth

The company reported a significant increase in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4. EBITDA rose to ₹100.00 crore, up from ₹86.00 crore in the same quarter of the previous year, marking a substantial 16.28% year-over-year growth.

Margin Improvement

Alongside the EBITDA growth, Vinyl Chemicals also saw an improvement in its EBITDA margin. The margin expanded to 5.76% in the reported quarter, up from 5.13% in the corresponding period last year, representing a 0.63 percentage point increase. This improvement suggests enhanced operational efficiency and cost management by the company.

Revenue Performance

The company's revenue showed a slight uptick in Q4. Vinyl Chemicals reported revenue of ₹173.00 crore, compared to ₹170.00 crore in the same quarter of the previous year, a modest 1.76% increase. This indicates a stable demand for the company's products.

Net Profit

Despite improvements in other areas, Vinyl Chemicals experienced a marginal decrease in net profit. The company reported a net profit of ₹73.00 crore for the quarter, down 2.67% from ₹75.00 crore in the same period last year.

Financial Overview

Analysis

The financial results reflect a company that has managed to improve its operational performance, as evidenced by the growth in EBITDA and margin expansion. However, the slight dip in net profit suggests that Vinyl Chemicals may be facing some challenges in translating its operational improvements into bottom-line growth.

The modest increase in revenue, coupled with a more substantial rise in EBITDA, indicates that the company has likely implemented effective cost-control measures or improved its product mix to enhance profitability at the operational level.

As Vinyl Chemicals continues to navigate the current business environment, investors and analysts will be keen to see if the company can maintain its operational improvements while addressing the factors affecting its net profit in the coming quarters.