Radhakishan Damani-Backed Company Posts Robust Q4; EBITDA Surges 61%; Stock Jumps Over 15%; FII Stake Rises

VST Industries Ltd reported a strong financial performance for the quarter and year ended March 31, 2026, driven by higher cigarette volumes, improved margins and market-led initiatives. The company’s share price rose over 15 per cent in early trade following the announcement.

Revenue and Volume Growth

Net cigarette revenue rose 25 per cent to Rs 1,151 crore in the fourth quarter, compared with Rs 921 crore in the corresponding period last year.

Cigarette volumes also showed steady growth. Average monthly volumes stood at 667 million sticks in Q4FY26, up from 647 million sticks in Q4FY25. For the full year, volumes increased 8.6 per cent to 696 million sticks per month.

Revenue from cigarette operations during the quarter stood at Rs 631 crore, compared with Rs 337 crore a year ago. However, revenue from unmanufactured tobacco declined to Rs 58 crore from Rs 116 crore.

Total revenue from operations for the quarter came in at Rs 689 crore, up from Rs 453 crore in the year-ago period. For FY26, total revenue rose to Rs 2,042 crore from Rs 1,806 crore.

Profitability Improves Sharply

Earnings before interest, Tax, depreciation and amortisation (EBITDA) surged 61 per cent to Rs 450 crore in FY26, compared with Rs 279 crore in FY25.

For the fourth quarter, EBITDA stood at Rs 208 crore, up from Rs 70 crore in Q4FY25.

EBITDA margin improved significantly to 22.0 per cent for FY26 from 15.4 per cent a year earlier, marking an expansion of 660 basis points. In Q4FY26, margins stood at 30.3 per cent.

Profit After Tax

Profit after tax for FY26 was reported at Rs 292.3 crore, largely flat compared with Rs 290.4 crore in FY25. However, the previous year’s figure included an exceptional gain.

Excluding the exceptional item of Rs 86.9 crore related to the sale of immovable property in FY25, profit after tax for FY26 reflects a growth of 43.6 per cent.

For the fourth quarter, profit after tax rose to Rs 116.7 crore from Rs 53.0 crore in the same period last year.

FIIs Increase Stake

Foreign institutional investor (FII) holding in VST Industries Ltd increased to 1.34 per cent in March 2026 from 1.22 per cent in December 2025, indicating a marginal rise in institutional interest during the quarter.

About VST Industries Ltd

VST Industries Ltd is an Indian tobacco company engaged in the manufacture and distribution of cigarettes and unmanufactured tobacco products. Headquartered in Hyderabad, Telangana, the company traces its origins to 1930 when it was incorporated as Vazir Sultan Tobacco Company, and became an independent entity in 1983.

VST Industries Ltd is among the leading cigarette manufacturers in India, ranking as the third-largest player in the segment. The company has a strong presence in key markets such as West Bengal, Andhra Pradesh, Telangana, Bihar and Uttar Pradesh

VST Industries Ltd Share Price Performance

VST Industries Ltd share price surged 15.25 per cent to Rs 278.51 in early trade on April 17, 2026. The stock has risen 21.74 per cent over the past one week, while it is up 8.95 per cent year-to-date but remains down 5.40 per cent over the past one year.

Disclaimer: The article is for informational purposes only and not investment advice.