Motilal Oswal has issued a buy rating on Vinati Organics with a target price of ₹1,950 in its research report dated January 31, 2026. According to the brokerage firm's analysis, the stock currently trades at approximately 23x FY28E EPS of ₹66 and 16x FY27E EV/EBITDA. The recommendation is based on the company's strong fundamentals and growth prospects despite recent quarterly performance challenges.
Vinati Organics reported lower-than-expected operating performance in the third quarter of FY26, with EBITDA growth of 13% YoY to ₹1.6 billion (estimated ₹1.8 billion). As reported by Motilal Oswal, the company's gross margin expanded to 55.2% from 49.0% in Q3FY25, though it declined 130 basis points quarter-on-quarter. EBITDA margin expanded 300 basis points YoY to 30.4% (down 230 basis points QoQ), while PAT grew 14% YoY to ₹1.1 billion (down 16% QoQ).
According to Motilal Oswal's analysis, the brokerage has broadly cut FY26/FY27/FY28 EPS estimates by 6%/5%/5% respectively. The firm expects a CAGR of 11%/19%/18% in revenue/EBITDA/PAT over FY25-28 period. The valuation methodology applies a 30x FY28E EPS multiple to arrive at the target price of ₹1,950, maintaining the buy recommendation despite the recent quarterly performance challenges.
