Vinyl Chemicals Reports 293% YoY Surge in Q2 Net Profit to ₹11.4 Crore

Key numbers

Market Cap	₹366.85 CrSmall Cap
PE TTM	19.65Sector 35.76
RSI	37.64Neutral Zone
1-Year Return	-29.08%Stock Performance

Key highlights

• Net profit surged to ₹11.4 crore, representing a 293.1% growth over the ₹2.9 crore reported in Q2 FY26
• Revenue from operations stood at ₹219 crore, a significant recovery from ₹99.6 crore in the preceding quarter
• Operating margins improved to 7.0%, compared to just 2.5% in the same quarter of the previous year
• Other income recorded a negative balance of ₹1.2 crore, contrasting with a gain of ₹6.3 crore in Q1 FY27
• Basic earnings per share (EPS) for the quarter reached ₹6.24, up from ₹3.61 in the previous quarter

Recovery in Operational Revenue and Profitability

Vinyl Chemicals (India) Limited witnessed a substantial recovery in its top-line performance for the quarter ended September 30, 2026. Revenue from operations climbed to ₹219 crore, reflecting a 119.8% surge from the ₹99.6 crore recorded in the June quarter. This recovery in volume helped drive net profit to ₹11.4 crore, a 72.7% sequential increase.

Despite the strong operational performance, the company reported a loss of ₹1.2 crore in other income, which had previously contributed ₹6.3 crore to the bottom line in Q1. The sharp improvement in profitability compared to the ₹2.9 crore profit in the previous year highlights a shift in the trading environment for the firm's core products.

Expenditure and Trading Dynamics

• Purchase of traded goods remained the largest cost head at ₹183 crore for the quarter
• Inventories of traded goods saw an increase of ₹17.57 crore during the three-month period
• Employee benefit expenses were maintained at ₹1.96 crore, showing stability in fixed costs
• Foreign exchange differences contributed an income of ₹1.76 crore, supporting the margins
• Finance costs remained negligible at ₹0.14 crore for the quarter ended September 2026

Business Model and Management Continuity

As a specialized trading firm focused on Vinyl Acetate Monomer (VAM), Vinyl Chemicals operates without a fixed order book, making its financial results highly dependent on global commodity price cycles and domestic industrial demand. The Board of Directors, in their meeting held on October 26, 2026, confirmed that the company continues to operate with a single primary reportable segment in chemical trading. In terms of governance, the company has already secured the re-appointment of Chairman and Managing Director M.

B. Parekh for a five-year term starting April 2027. The company's valuation currently stands at a P/E of 19.65, which is lower than the sector average of 35.76.

What to watch next

• Re-appointment of Chairman and Managing Director M. B. Parekh effective from 01 April 2027
• Next quarterly results announcement for the period ending 31 December 2026
• Impact of global Vinyl Acetate Monomer price volatility on trading margins in H2 FY27

Vinyl Chemicals (India) · financial snapshot

Share price	₹200.06
Market capitalisation	₹366.85 Cr
Revenue (annual)	₹652.44 Cr
Net profit (annual)	₹16.49 Cr
Revenue (latest quarter)	₹99.64 Cr-44.60% vs previous quarter
Net profit (latest quarter)	₹6.62 Cr+42.37% vs previous quarter
P/E (TTM)	19.65×Sector 35.76×
Promoter holding	50.41%0.00% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.