Deven Choksey report on Vinati Organics
Q2FY26 Revenue declined slightly by 0.6% YoY (+1.5% QoQ) to INR 5,502 Mn., stood below our estimates by 15.0%. Gross profit grew by heathy rate of 22.1% YoY (8.1% QoQ) to INR 3,068 Mn., resulting in improvement of gross margin by 1036bps YoY (+342bps QoQ) to 55.8%. EBITDA grew at a pace of 25.1% YoY (+4.8% QoQ) to INR 1,673 Mn, driven by significant improvement in gross margins. Net profit stood at INR 1,149 Mn, up 10.1% YoY (+10.3% QoQ).
Outlook
We have rolled forward our valuation basis to Sept’27 estimates. We value Vinati Organics at 33.0x Sept’27 EPS, implying a target price of INR 1,750. We reiterate our “ACCUMULATE” rating on the stock.
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