VST Industries LimitedQ2 FY27 Results & Financial Update
VST Industries Limited: Q2 FY27 standalone results and company financials – revenue ₹844.06 Cr, PAT ₹41.04 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
Find an answer
Ask this result
Chart · Market context
VST Industries price & chart
Market price₹201.15
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore VST Industries Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
VST Industries reported standalone revenue from operations of Rs 844.06 crore for the quarter ended September 30, 2026, comparing with Rs 450.37 crore in the corresponding period of the previous year and Rs 881.71 crore in the preceding quarter ended June 30, 2026.
Total income for Q2 FY27 stood at Rs 864.94 crore, compared to Rs 462.32 crore a year ago and Rs 881.49 crore in Q1 FY27.
Profit before tax (PBT) for the quarter was recorded at Rs 53.30 crore, down from Rs 78.41 crore in Q2 FY25 and Rs 58.28 crore in the preceding quarter.
Profit after tax (PAT) for Q2 FY27 came in at Rs 41.04 crore, reflecting a moderation compared to Rs 59.21 crore in the corresponding quarter of the previous year and Rs 42.42 crore in the previous quarter.
Basic and diluted earnings per share (EPS) for the quarter stood at Rs 2.41, compared with Rs 3.49 in Q2 FY26 and Rs 2.50 in Q1 FY27.
The financial performance during the quarter and half-year continued to be shaped by a structural regulatory change in indirect taxation enacted earlier in the calendar year.
Effective February 1, 2026, the Government of India reduced the Compensation Cess on cigarettes to nil while significantly increasing GST and excise duty, raising the overall tax incidence on cigarettes by approximately 50% on average and creating a challenging operating environment for legal industry volumes and consumer affordability.
01 · Business model
What does VST Industries do?
VST Industries Limited, incorporated in 1930 under the erstwhile name The Vazir Sultan Tobacco Company Limited, operates with a heritage spanning over nine decades in the manufacture and distribution of cigarettes and unmanufactured tobacco leaf.
The company's distribution network reaches across 10 lakh retail outlets in India, translating to over 80% market penetration. Two of its prominent cigarette brands, Total and Editions, are recognized among the Top 10 cigarette brands in the country.
The operational footprint includes indenting over 20,000 tonnes of tobacco through interactions with more than 15,000 farmers, supported by a manufacturing facility located at Toopran in Telangana.
VST Industries functions within a single operating segment focused on tobacco and related products, reviewing business performance at an overall company level.
02 · Historical context
What shaped the business before this quarter
Established in 1930 as The Vazir Sultan Tobacco Company Limited, transitioning over nine decades into a leading domestic cigarette manufacturer.
With effect from February 1, 2026, the Government of India abolished the Compensation Cess on cigarettes while implementing a substantial increase in GST and Excise Duty.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹844.06 Cr | ₹450.37 Cr | ₹881.71 Cr |
| Total income | ₹864.94 Cr | ₹462.32 Cr | ₹881.49 Cr |
| Profit before tax | ₹53.30 Cr | ₹78.41 Cr | ₹58.28 Cr |
| Profit after tax | ₹41.04 Cr | ₹59.21 Cr | ₹42.42 Cr |
| EPS | ₹2.41 | ₹3.49 | ₹2.50 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Gross sales for Q2 FY27 were reported at Rs 843.61 crore alongside other operating income of Rs 0.45 crore. Concurrently, excise duty outgo stood at Rs 602.74 crore, reflecting the revised indirect tax structure effective from February 2026.
According to the company's press release, net revenue (revenue from operations excluding excise duty) stood at Rs 242 crore in Q2 FY27 compared to Rs 336 crore in Q2 FY26, with cigarette net revenue at Rs 187 crore and unmanufactured tobacco and other revenue at Rs 55 crore.
Company disclosures indicate that average monthly cigarette volumes were 562 million in Q2 FY27, compared to 695 million in Q2 FY26 and 611 million in Q1 FY27, reflecting ongoing volume headwinds from higher tax incidence.
What drove margins
Excise duty expenses for Q2 FY27 rose to Rs 602.74 crore from Rs 114.25 crore in Q2 FY26, directly reflecting the statutory shift following the withdrawal of Compensation Cess and upward revision of excise and GST rates.
Cost of materials consumed for the quarter was reported at Rs 122.44 crore, lower than Rs 188.43 crore in Q2 FY26. Changes in inventories of finished goods and work-in-progress showed a positive adjustment of Rs 4.47 crore.
Employee benefits expense was Rs 34.01 crore in Q2 FY27 compared to Rs 31.79 crore a year ago. Other expenses stood at Rs 37.16 crore, down from Rs 44.80 crore in Q2 FY26.
05 · Demand, customers & order book
Where demand is coming from
Products are distributed across 10 lakh retail outlets in India, providing an extensive retail reach exceeding 80% market penetration.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company maintains a single operating segment, 'tobacco and related products', and reviews business performance at an overall company level in accordance with Ind AS 108.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Primary manufacturing operations are anchored at the company's facility located in Toopran, Telangana.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Management continues to focus on strengthening core brands such as Total and Editions, adopting a measured pricing approach, and improving distribution effectiveness.
09 · Pressure points & risks
What is not going smoothly
Management noted that the significant increase in cigarette taxation has created a challenging operating environment, impacting consumer affordability, legal industry volumes, and overall profitability.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half year ended September 30, 2026, net cash generated from operating activities stood at Rs 198.80 crore, compared to Rs 69.47 crore in the corresponding period of the previous year.
Net cash used in investing activities was Rs 11.35 crore, while net cash used in financing activities was Rs 203.45 crore, primarily reflecting dividend payouts on equity shares.
Capital allocation & funding
The company does not carry borrowings, maintaining a debt-free capital structure with total equity standing at Rs 1,326.03 crore as of September 30, 2026.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Absence of Subsidiaries
The company does not have any subsidiary company, associate, or joint venture, rendering consolidation of financial statements inapplicable.
Reported update
Statutory Auditor Review
The financial results for the quarter and half year ended September 30, 2026, were subjected to a limited review by statutory auditors Price Waterhouse Chartered Accountants LLP, who issued an unmodified review report.
12 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations moved from Rs 881.71 crore in Q1 FY27 to Rs 844.06 crore in Q2 FY27.
PAT shifted from Rs 42.42 crore in the preceding quarter to Rs 41.04 crore in the current quarter.
13 · Key Q&A
The quarter, answered directly
What does VST Industries do?
VST Industries Limited, incorporated in 1930 under the erstwhile name The Vazir Sultan Tobacco Company Limited, operates with a heritage spanning over nine decades in the manufacture and distribution of cigarettes and unmanufactured tobacco leaf.
What is the clearest takeaway from Q2 FY27?
VST Industries reported standalone revenue from operations of Rs 844.06 crore for the quarter ended September 30, 2026, comparing with Rs 450.37 crore in the corresponding period of the previous year and Rs 881.71 crore in the preceding quarter ended June 30, 2026.
What drove revenue or demand?
Gross sales for Q2 FY27 were reported at Rs 843.61 crore alongside other operating income of Rs 0.45 crore. Concurrently, excise duty outgo stood at Rs 602.74 crore, reflecting the revised indirect tax structure effective from February 2026.
What mattered most for margins or profitability?
Excise duty expenses for Q2 FY27 rose to Rs 602.74 crore from Rs 114.25 crore in Q2 FY26, directly reflecting the statutory shift following the withdrawal of Compensation Cess and upward revision of excise and GST rates.
What changed operationally beyond the headline numbers?
Primary manufacturing operations are anchored at the company's facility located in Toopran, Telangana.
What are the main pressure points disclosed for the quarter?
Management noted that the significant increase in cigarette taxation has created a challenging operating environment, impacting consumer affordability, legal industry volumes, and overall profitability.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Volume Recovery Trends: Monitor subsequent quarterly volume figures and average monthly cigarette volume metrics to assess the longer-term demand impact of the February 2026 tax structure revision.
- 02
Unmanufactured Tobacco Performance: Track export and domestic demand trends in the unmanufactured tobacco business amid ongoing geopolitical headwinds.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.