VST Industries Q2 FY27 Revenue Down 21% to ₹242 Cr on Tax Hike
VST Industries reported a 21.4% year-on-year decline in Net Revenue for the quarter ended September 30, 2026, reaching ₹242 crore compared to ₹336 crore in Q2 FY26. Profit After Tax (PAT) also saw a significant drop of 27.6%, falling to ₹41.1 crore from ₹59.2 crore in the same period last year. The company attributed the downturn to an extraordinary tax increase, with the incidence of tax on cigarettes rising by approximately 50% due to changes in GST and Compensation Cess. Cigarette volumes decreased by 16.8%. The unmanufactured tobacco business also faced headwinds from geopolitical situations. Despite challenges, the company remains focused on brand strengthening, pricing, distribution, and cost efficiencies for long-term growth.
Key Highlights
- Net Revenue declined 21.4% YoY to ₹242 crore in Q2 FY27.
- PAT decreased by 27.6% YoY to ₹41.1 crore.
- Cigarette volumes fell 16.8% due to increased taxation.
- Company cites significant cigarette tax hike as primary challenge.
- Focus remains on brand, pricing, distribution, and cost efficiencies.
Price Impact
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