Motilal Oswal has issued a buy rating on Vinati Organics with a target price of ₹1,550 in its research report dated July 29, 2026, while Prabhudas Lilladher has recommended an accumulate rating with a target price of ₹1,443 in its report dated July 30, 2026. According to the brokerage analysis, both firms value the stock at 28x FY28E EPS and 30x FY28E EPS respectively, reflecting confidence in the company's growth prospects and strong fundamentals.
Vinati Organics reported revenue of ₹7 billion in Q1FY27, representing 15% quarter-on-quarter growth and 28% year-on-year growth, driven by higher exports and strong antioxidant volumes. However, EBITDA margin declined 370 basis points quarter-on-quarter due to rupee depreciation and elevated raw material costs. Despite margin pressure, management reiterated its FY27 EBITDA margin guidance of 26-27% and expects stronger performance in H2FY27 compared to H1FY27.
The antioxidants business is expected to remain the key growth driver in FY27, with a peak annual revenue potential of ₹7 billion. The re-engineering work at the Veeral Organics plant is on track for completion by December 2026, with revenue contribution expected to commence from January 2027. At 80% capacity utilization, the facility is expected to generate annual revenue of ₹4-5 billion. The ATBS segment continues to be fueled by the ramp-up of Phase I capacity and the commissioning of the Phase II expansion in October 2026.
Motilal Oswal expects revenue to grow 13% in FY27 with an EBITDA margin of 25.8%. The brokerage has broadly maintained its earnings estimates for FY27/FY28 and expects a CAGR of 18%/15%/13% in revenue/EBITDA/PAT over FY26-28. The stock currently trades at ~23.8x FY28E EPS of ₹54.9 and ~15.4x FY28E EV/EBITDA, with both brokerages maintaining their positive recommendations based on the company's growth trajectory and strong fundamentals.
