VST Industries announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The company’s Net Revenue declined by 21% to ₹242 crore in Q2 FY27, compared to ₹336 crore in Q2 FY26. Profit After Tax (PAT) also saw a decrease of 27.6%, falling to ₹41.1 crore from ₹59.2 crore year-on-year, largely influenced by a significant increase in cigarette taxation effective February 1, 2026.
VST Industries Reports Q2 FY27 Financials
VST Industries has released its unaudited financial results for the quarter and half-year ending September 30, 2026. The company experienced a notable downturn in its financial performance, primarily attributed to an extraordinary increase in taxation on cigarettes.
Key Financial Highlights
Quarter Ended September 30, 2026 (Q2 FY27) vs. Q2 FY26
- Net Revenue: Decreased by 21.4% to ₹242 crore, down from ₹336 crore in the prior year’s corresponding quarter.
- Cigarette Volume: Average volume per month fell by 16.8% to 562 million units, compared to 695 million units in Q2 FY26.
- EBITDA: Declined by 40.4% to ₹43 crore from ₹79 crore in Q2 FY26. The EBITDA margin also contracted to 17.9% from 23.4%.
- Profit after Tax (PAT): Fell by 27.6% to ₹41.1 crore, from ₹59.2 crore in Q2 FY26.
Half Year Ended September 30, 2026 (H1 FY27) vs. H1 FY26
- Net Revenue: Down by 21.4% to ₹498 crore, compared to ₹634 crore in H1 FY26.
- Profit after Tax (PAT): Decreased by 28% to ₹84 crore, from ₹115 crore in H1 FY26.
Impact of Taxation Changes
A significant factor impacting the company’s performance is the change in tax levies. With effect from February 1, 2026, the Government of India reduced the Compensation Cess on cigarettes to ‘Nil’. However, simultaneously, GST and Excise Duty on cigarettes were substantially increased, leading to an approximate 50% average increase in the incidence of tax on cigarettes.
Management Commentary
Piyush Srivastava, Managing Director, commented, “The significant increase in cigarette taxation has created a challenging operating environment, impacting consumer affordability and legal industry volumes. Our focus remains on strengthening our brands, adopting a measured pricing approach, improving distribution effectiveness and driving cost efficiencies. In our unmanufactured tobacco business, ongoing geopolitical situation continues to weigh on growth. We remain committed to navigating these challenges with discipline and building a resilient business for sustainable long-term growth.”
About VST Industries
VST Industries Limited, incorporated in 1930, is a leading manufacturer and distributor of cigarettes and tobacco leaf in India. The company boasts a market penetration of over 80% with its products available across 10 lakh retail outlets nationwide. Its manufacturing facility is located in Toopran, Telangana.
Source: BSE
