Vinati Organics (VO IN) – Q1FY27 Result Update – Veeral Organics to Contribute from Q4FY27 – ACCUMULATE
Published on 30 Jul 2026
VO reported revenue of INR7bn in Q1FY27, up 15% QoQ and 28% YoY, driven by higher exports and strong antioxidant volumes. EBITDA margin declined 370bps QoQ, primarily due to rupee depreciation and elevated raw material costs. However, management reiterated its FY27 EBITDA margin guidance of 26–27% and expects a stronger performance in H2FY27 compared to H1FY27. The antioxidants business is expected to remain the key growth driver in FY27, with a peak annual revenue potential of INR7bn. Re-engineering work at the Veeral Organics plant is on track for completion by December’26, with revenue contribution expected to commence from January’27. At 80% capacity utilization, the facility is expected to generate annual revenue of Rs4–5bn. We expect revenue to grow 13% in FY27, with an EBITDA margin of 25.8%. We value the company at 30x FY28E EPS and maintain our 'Accumulate' rating with a target price of INR1,443.
