VST Industries Ltd reported a significant decline in profitability for the December quarter, with net profit falling 55.8% year-on-year to ₹60.23 crore compared with ₹136.2 crore in the corresponding period last year. Despite the sharp profit decline, the company maintained revenue stability with operations revenue rising marginally by 1.7% YoY to ₹373.4 crore. The company disclosed that the sharp decline was primarily due to the absence of a ₹100.49 crore exceptional gain from a property sale in the prior year's Q3.
The company demonstrated strong operational efficiency during the quarter, with EBITDA increasing 25.7% YoY to ₹86 crore from ₹68.3 crore in the previous year. EBITDA margins expanded significantly to 23%, up from 18.6% in the corresponding quarter last year, reflecting improved cost management and operational efficiency. However, the company noted that the absence of the exceptional gain significantly impacted overall profitability metrics.
Following the earnings announcement, VST Industries announced the appointment of Piyush Srivastava as Additional Director and Managing Director & Chief Executive Officer for a period of five years, effective March 2, 2026, subject to shareholder approval through a postal ballot. The company confirmed that the appointee is not debarred by SEBI or any other authority. The new leadership appointment comes as the company faces challenges from the absence of exceptional gains that had previously supported profitability metrics.
For the nine-month period (9M FY26), Total Revenue from Operations edged up by a marginal 0.07% to ₹1,356.34 crore from ₹1,355.45 crore in the same period last year. However, the nine-month PAT declined by 25.5% YoY to ₹175.57 crore from ₹237.40 crore, again impacted by the prior year's exceptional gain. The nine-month EPS stood at ₹10.34, down from ₹13.97. The subdued revenue growth, especially on a nine-month basis, suggests potential headwinds or market saturation in the tobacco products segment. The effectiveness of the newly appointed MD & CEO, Piyush Srivastava, in revitalizing growth and profitability will be critical for the company's future performance.
Following the earnings announcement, shares of VST Industries Ltd were trading largely flat, down 0.13% at ₹234.60 on the NSE as of 2:11 pm. The company also announced the appointment of new statutory auditors, Price Waterhouse Chartered Accountants LLP, for a five-year term, providing a fresh perspective on financial oversight. The absence of forward-looking guidance is a key concern for investors, with market participants watching closely for strategic shifts, cost management initiatives, and market strategies under the new leadership over the next 1-2 quarters.
