Accumulate Vinati Organics; target of Rs 1882: Prabhudas Lilladher

Prabhudas Lilladher's research report on Vinati Organics

Vinati Organics (VO IN) reported revenue of Rs6.5bn in Q4FY25, marking a robust 17.8% YoY and 24% sequential increase. The management has reiterated its guidance of 20% revenue CAGR over the next 3 years, along with EBITDA margins in the range of 26%–27%. ATBS, the company’s key highmargin product, delivered strong growth during the quarter, driven by rising demand in the O&G sector, where it is used as a tertiary oil recovery agent. The antioxidants segment, which generated ~Rs2.2bn revenue in FY25, is expected to see robust growth ahead, supported by annual contracts the company plans to secure with domestic customers. New products like MEHQ and Guaiacol are expected to make a meaningful contribution in FY26, with a peak revenue potential of Rs4bn. The ongoing ATBS expansion, with Phase 1 expected to be commissioned by Jun’25, is well aligned with increasing market demand. Additionally, new product launches, including anisole, 4MAP, TAA, and PTAP, are expected in Q2FY26 and Q3FY26.

Outlook

These product launches position the company for strong performance in the coming years. We maintain ‘Accumulate’ rating with revised TP of Rs1,886, valuing it at 36x FY27 EPS.

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