Synopsis:- Shares surged nearly 16% after a strong Q4 performance, with profit jumping 121% YoY. Cigarette volumes grew 8.6% to 667 million sticks monthly, while EBITDA rose to ₹208 crore with margins at 30.3%. A 29.1% stake by a marquee investor reflects long-term confidence.
The shares of prominent cigarettes manufactures and distributors gained up to 18 percent in today’s trading session after the company reported robust Q4FY26 performance.
With a market capitalization of Rs 4,701.76 crore, the shares of VST Industries Ltd were trading at Rs 276.80 per share, increasing around 15 percent as compared to the previous closing price of Rs 241.60 apiece.
Q4FY26 Highlights
VST Industries Ltd reported strong quarterly performance, with revenue rising 31% YoY from ₹349 crore to ₹457 crore and 23% QoQ from ₹373 crore. Profit surged sharply by 121% YoY from ₹53 crore to ₹117 crore and 95% QoQ, reflecting improved margins and operating leverage.
Furthermore, the company’s full-year performance remained relatively stable, with revenue increasing 5% from ₹1,398 crore in FY25 to ₹1,465 crore in FY26. However, net profit saw only a marginal rise of 1% from ₹290 crore to ₹292 crore, indicating limited earnings growth despite steady top-line expansion. Further, the board of directors has recommended a final dividend of ₹12 per equity share of face value ₹10 each.
Segment & other Highlights
The company reported a robust operational performance in Q4FY26, with cigarette volumes increasing to 667 million sticks per month, marking an 8.6% YoY growth. As a result, cigarette revenue rose sharply to ₹631 crore from ₹337 crore. However, unmanufactured tobacco revenue declined to ₹58 crore from ₹116 crore, taking total revenue from operations to ₹689 crore, supported by strong core segment demand.
Moreover, profitability improved significantly, as EBITDA jumped to ₹208 crore from ₹70 crore, translating into a 61.4% YoY rise. EBITDA margins expanded to 30.3% from 15.3%, highlighting operating leverage benefits. However, on a full-year basis, unmanufactured tobacco revenue declined, suggesting some pressure in non-core segments despite strong cigarette-led growth momentum.
The management highlights a strong recovery in volumes driven by better brand positioning and disciplined execution, which supported double-digit profit growth. However, geopolitical tensions in the Middle East continue to impact the unmanufactured tobacco segment. Looking ahead, rising taxation poses a key challenge, but the company remains focused on strengthening brands and delivering long-term value.
Commenting on the performance of the company, Piyush Srivastava, Managing Director, said, “In 2025, we achieved robust volume recovery supported by our enhanced brand portfolio and disciplined in-market execution. While geopolitical instability in the Middle East continues to weigh on our unmanufactured tobacco business, our productivity initiatives have delivered significant double-digit profit growth.
Given the extraordinary tax increases, a challenging year awaits us. We will remain focused on strengthening our brand portfolio and in-market execution. We remain steadfast in our commitment to creating superior value for consumers and stakeholders.”
Ace Investor
As per the latest shareholding data, ace investor Radhakishan Damani holds stakes in 11 companies with a total net worth exceeding ₹1,99,373.1 crore, reflecting a highly concentrated yet high-value portfolio. Notably, he holds a 29.1% stake in VST Industries Ltd, indicating strong long-term conviction in the business.
VST Industries Ltd is a leading tobacco company in India, primarily engaged in the manufacturing and marketing of cigarettes. Known for its strong regional presence and established brands, the company focuses on cost efficiency, stable cash flows, and consistent dividend payouts, making it a prominent player in the domestic tobacco industry.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post RK Damani Stock Skyrockets 16% After Reporting 121% YoY Increase in Net Profit appeared first on Trade Brains.