Vinati Organics Gets 'Buy' Upgrade From PL Capital Post Q1 Result Citing Margin Resilience, Capacity Expansion

ATBS, Vinati Organics’ flagship high-margin product, continued to deliver robust growth and remains oversold, likely to be supported by rising demand from the oil and gas sector where it is used as a tertiary oil recovery agent..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .PL Capital Report.Due to the recent correction in stock performance along with strong visibility from ATBS, new product ramp-up, and capacity expansion, we upgraded Vinati Organics Ltd. to ‘Buy’ with a target price of Rs 2,091, valuing the stock at 40x FY27 EPS. The company reported revenue of Rs 5.4 billion in Q1 FY26, reflecting a modest 3.3% YoY increase but a sharp 16% sequential decline. Management has guided for ~15% revenue growth in FY26, led by an expected 20% increase in volumes, with Ebitda margins projected at ~27%. ATBS, the company’s flagship high-margin product, continued to deliver robust growth and remains oversold, likely to be supported by rising demand from the oil & gas sector where it is used as a tertiary oil recovery agent. Phase I of the ATBS capacity expansion has been completed, while Phase II is scheduled to come online in April’26. In the Antioxidants (AOs) segment, demand remains healthy though pricing pressure persists due to competition from China and Singapore. New products such as MEHQ and Guaiacol did not contribute meaningfully in Q1, but are expected to ramp up in FY26, with a combined peak revenue potential of ~Rs 4 billion. Additionally, upcoming product launches including anisole, 4MAP, TAA, and PTAP, expected in Q2 FY26 and Q3 FY26 are likely to strengthen the growth trajectory. We upgraded the stock to ‘Buy’. The stock is currently trading at 32x FY27 EPS..Click on the attachment to read the full report:.Engineers India Shares Get 'Buy' Upgrade From PL Capital Post Q1 Results.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Vinati Organics Gets 'Buy' Upgrade From PL Capital Post Q1 Result Citing Margin Resilience, Capacity Expansion

Upcoming product launches including anisole, 4MAP, TAA, and PTAP, expected in Q2 FY26 and Q3 FY26 are likely to strengthen the growth trajectory, adds the brokerage.

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