Vinati Organics (VO IN) – Q4FY26 Result Update – ATBS expansion to drive growth in FY27 – Accumulate
Published on 14 May 2026
VO reported revenue of Rs6bn in Q4FY26, up 14% QoQ but down 7% YoY. Sequential topline growth was supported by volume growth as well as gains from INR depreciation. EBITDA margin contracted by 130bps QoQ due to higher raw material costs; however, the company expects the increase in input costs to be passed on to customers going forward. The management has guided that they expect sustainable EBITDAM of 26%–27%. The antioxidants segment saw 25% volume growth and contributed 12%–14% to overall revenue and has a peak revenue potential of Rs7bn. Revenue contribution from new products such as MEHQ and guaiacol is yet to commence as the plants remain in the stabilization phase, which may take a few more months. We expect contribution from these products starting H2FY27, followed by a gradual ramp-up thereafter.
Additionally, plants for upcoming products such as 4MAP, TAA, and PTAP are expected to be operationalized in FY27, providing further medium-term growth visibility. The stock is currently trading at 26x FY28E EPS. We value the company at 30x FY28E EPS and maintain our ‘Accumulate’ rating with a target price of Rs1,475.
