Vinati Organics (VO)’s 4QFY25 revenue came in line at INR6.5b. Gross margin expanded 80bp YoY to 47.4%, while EBITDAM was up 100bp YoY at 28.3%. EBITDA increased 22% YoY to INR1.8b and PAT grew 22% to INR1.3b (our est. INR1.2b). All the key segments reported strong growth in FY25. ATBS revenue rose 30% YoY, led by volume gains, with double-digit growth expected in FY26. BP grew 26% YoY and is likely to sustain momentum with stable demand and market share gains. While IBB declined 27% YoY, IB and HPMTBE showed strong growth. Antioxidants grew 70% YoY, supported by new products and growing customer traction despite imports from China and Singapore. AO + BP revenue is guided at INR8.0–8.5b in FY26, backed by expected biannual and annual contracts.
OutlookThe stock is trading at ~28x FY27E EPS of INR62.7 and ~20x FY27E EV/EBITDA. It had a fixed asset turnover of 1.7x as of FY25. We continue to believe that VO’s long-term growth outlook is healthy. We value VO on 35x FY27E EPS to arrive at our TP of INR2,195. We reiterate our BUY rating on the stock.
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