By: ICN Bureau
Last updated : October 31, 2026 7:19 am
Unveils Rs. 500 crore capex plan
Specialty chemical manufacturer Vinati Organics reported a decline in its financial performance for the second quarter of FY27, weighed down by higher raw material and operating costs.
The company posted a consolidated net profit of Rs. 78.4 crore for the quarter ended September 30, marking a year-on-year decrease compared to Rs. 114.28 crore in the same period last year. Revenue from operations stood at Rs. 680 crore from Rs. 585 crore in the same period last year.
Margin pressures intensified during the quarter as earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 26.6% to Rs. 125.5 crore from Rs. 171 crore a year ago. Consequently, the EBITDA margin contracted by 610 basis points, dropping to 18.5% from 24.6% in the corresponding quarter of the previous fiscal year, driven primarily by an increase in the cost of consumed materials and power expenses.
Rs. 500 Crore Greenfield Expansion Plan
Amid the quarterly margin compression, Vinati Organics announced a major capital expenditure (capex) package of Rs. 500 crore for the parent company and its wholly owned subsidiary, Veeral Organics Private Limited. The investment will fund new greenfield projects dedicated to high-growth specialty chemical segments, including: Resins, Fragrances and personal care, Water treatment solutions and Oil field applications.
The company will evaluate expansion into adjacent product categories aligned with evolving market demand. In line with its debt-free historical strategy, the entire Rs. 500 crore project cost will be financed through internal accruals, with all planned facilities scheduled for commissioning over the next two years.