Vinyl Chemicals Q1FY27: PAT up 48.8% YoY to ₹6.62 Cr on margin gains as revenue falls 34%

Vinyl Chemicals (India) reported standalone Q1 FY27 (unaudited) net profit of ₹6.62 Cr, up 48.8% year-on-year from ₹4.45 Cr and up 42.4% quarter-on-quarter from ₹4.65 Cr, with EPS at ₹3.61 versus ₹2.42 a year ago. Revenue from operations, however, fell sharply — down 34.1% YoY to ₹99.64 Cr (from ₹151.23 Cr) and 44.6% QoQ (from ₹179.84 Cr) — so the profit growth is a margin story, not a volume story: net profit margin expanded to ~6.6% from ~2.9% YoY and ~2.5% QoQ, while operating margin (PBT excluding other income, over revenue) rose to ~2.6% from ~1.3% YoY and ~1.6% QoQ. There are no analyst estimates or formal management guidance on record for this quarter (checked our records and web) — management gives no formal guidance and no prior outlook exists to grade this print against, so vsGuidance and vsStreet are both unknown here.

The margin expansion is largely a trading-book timing effect rather than an operating improvement: the (increase)/decrease in inventories of traded goods line swung to a ₹76.31 Cr build this quarter (from a ₹31.26 Cr drawdown in Q4FY26 and a ₹29.18 Cr build in Q1FY26), which is what let a shrinking top line still produce a bigger bottom line — a pattern consistent with this being a single-segment chemicals trading business where quarter-to-quarter inventory timing is volatile. Foreign exchange difference expense also rose to ₹4.72 Cr from ₹3.83 Cr (Q4FY26) and ₹3.87 Cr (Q1FY26), and a ₹1.03 Cr deferred-tax credit added to reported profit versus a deferred-tax charge in the comparative periods. No exceptional items appear in the current or comparative quarters, so no raw-vs-adjusted PAT split is needed. On corporate developments, the Board approved these results on 30 July 2026 as scheduled after closing the trading window on 25 June 2026 and holding its 40th AGM on 23 June 2026; the company's records also flag a ₹1,300 Cr Pidilite-related transaction disclosed around the AGM window, though this filing does not reference it and it is not reflected in these P&L figures. No standalone management press release accompanied this filing to compare against.

The stock went into the print at ₹255, down 0% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 3 consecutive quarters.

Standalone-only result — company has no subsidiaries, associates or JV (Note 5), so no consolidated figures exist

Unaudited, subject to limited review by Mehul Gada & Associates — Board approved on 30 July 2026