VST Industries shares surged 19% to ₹286.40 on the BSE on Friday, April 17, following the company's impressive Q4 results announcement. According to reports from Mint, the cigarettes and tobacco products maker had closed at ₹241.60 in the previous session, representing a significant jump of 18.54% in a single trading day. The rally was driven by the company's exceptional quarterly performance despite challenging market conditions including sharp tax increases and cigarette price hikes.
As reported by Mint, VST Industries' Q4 profit jumped 118.86% year-on-year to ₹116.7 crore compared to ₹53 crore in the same period last year. The company's revenue from operations increased 52% YoY to ₹689 crore, led by a remarkable 87% growth in the cigarette segment to ₹631 crore in Q4FY26 from ₹337 crore in the previous year. Margins remained healthy at 30.3%, recording an increase of 1,500 basis points. For the full financial year, the company maintained strong performance with profit after tax rising 43.6% YoY to ₹292.3 crore and revenue increasing to ₹2,042 crore from ₹1,806 crore.
According to Mint, cigarette volumes remained healthy at 667 million in Q4FY26 compared to 647 million in the previous year, demonstrating resilience despite significant tax increases. The company faced excise duty hikes ranging from ₹2,050-8,500 per thousand sticks based on product length and type, effective February 1, along with GST implementation of 40%. Companies raised cigarette prices by a minimum of ₹22 to ₹25 per pack of 10 sticks to as much as ₹55 following these tax changes. Managing Director Piyush Srivastava noted that while geopolitical instability in the Middle East affected the unmanufactured tobacco business, productivity initiatives delivered strong double-digit profit growth.
As reported by Mint, VST Industries' board recommended a final dividend of ₹12 per equity share of ₹10 each, with the record date fixed as July 10, 2026. The dividend will be paid within 30 days of shareholder approval at the 95th Annual General Meeting. Despite the strong quarterly performance, the stock has shown mixed long-term trends, gaining 8% in 2026 but losing 6% over one year, 18% in two years, and 8% in three years.
