Motilal Oswal has issued a buy rating on Vinati Organics with a target price of ₹1,700 in its research report dated May 28, 2026. According to the brokerage's analysis, the company demonstrated steady operating performance with EBITDA at ₹1.8 billion, remaining flat year-on-year against estimates of ₹1.6 billion. The EBITDA margin expanded 170 basis points year-on-year despite challenges from fluctuating raw material prices, logistics costs, and supply chain issues.
Looking ahead, Vinati Organics is expected to drive revenue growth in its Acrylamide Tertiary-Butyl Sulfonic Acid (ATBS) segment through volume growth, the ramp-up of Phase I expansion, and the commercialization of Phase II in October 2026. As reported by Motilal Oswal, the phenol (BP) segment is anticipated to witness improving demand conditions, while the Isobutyl Benzene (IBB) segment is likely to post double-digit growth.
Motilal Oswal has maintained its earnings estimates for FY27/FY28 and values Vinati Organics at 29x FY28E EPS to arrive at the target price of ₹1,700. The brokerage has reiterated its buy rating on the stock, indicating confidence in the company's operational performance and future growth prospects across its key business segments.
