VST Industries shares experienced a dramatic surge of 19% following the company's impressive Q4 FY26 results. According to reports from The Hindu BusinessLine, the stock was trading 14% higher at ₹276.11 around 11:33 am, after hitting an intraday high of ₹286.78 compared to the previous close of ₹241.53. The rally was driven by the company's strong operational performance in the March quarter.
The company delivered exceptional financial results for Q4 FY26, with profit after tax nearly doubling to ₹116.7 crore in the March 2026 quarter from ₹53 crore in the same quarter last year. As reported by The Hindu BusinessLine, revenue from operations rose 52% year-on-year to ₹689 crore during the quarter under review, compared to ₹453.38 crore in the corresponding period last year. The strong performance was driven by improved operational efficiency across the company's business segments, with the cigarette segment showing exceptional growth of 87% to ₹631 crore in Q4FY26 from ₹337 crore in the same period last year.
On a full-year basis, the company reported a marginal increase in profit, with FY26 PAT at ₹292.3 crore as against ₹290.40 crore in FY25. According to The Hindu BusinessLine, adding to investor sentiment, the board recommended a final dividend of ₹12 per equity share of face value ₹10 each. The dividend, if approved by shareholders at the upcoming 95th AGM, will be paid within 30 days of approval. The record date for the dividend has been fixed as 10 July, 2026.
Despite strong performance, the company faced significant headwinds from increased taxation. As reported by Mint, cigarette prices were raised by a minimum of ₹22 to ₹55 per pack following the government's imposition of additional excise duty on cigarettes and tobacco products over and above the highest 40% GST slab rate, effective February 1. Cigarette volumes remained healthy at 667 million in Q4FY26 against 647 million in the previous year, demonstrating resilience despite the challenging tax environment. Commenting on the performance, Piyush Srivastava, Managing Director, stated that the company achieved robust volume recovery supported by enhanced brand portfolio and disciplined execution, while acknowledging that extraordinary tax increases would make the year challenging.
