Financial Performance Highlights

Quarterly Comparative Results (₹ crore)

| Particulars | Q1 FY27 | Q1 FY26 | Q4 FY26 | YoY Change | QoQ Change |

| Cigarette Volume (avg monthly mn sticks) | 611 | 714 | 667 | -14.4% | -8.4% |

| Revenue from Operations: | | | | | |

| - Cigarette (net of excise duty) | 216 | 255 | 399 | -15.3% | -45.9% |

| - Unmanufactured Tobacco | 40 | 41 | 58 | -2.4% | -31.0% |

| Net Revenue | 256 | 296 | 457 | -13.5% | -44.0% |

| EBITDA | 50 | 77 | 208 | -35.0% | -76.0% |

| EBITDA Margin (%) | 19.5 | 26.0 | 45.5 | -650 bps | -2600 bps |

| Profit after Tax | 42.4 | 56.1 | 116.7 | -24.4% | -63.7% |

Key Operational Metrics

  • Cigarette volume declined to 611 million sticks per month average in Q1 FY27 from 714 million in Q1 FY26
  • Net revenue decreased by 13.5% year-on-year to ₹256 crore from ₹296 crore
  • Profit after tax declined by 24.4% to ₹42.4 crore from ₹56.1 crore in same quarter previous year
  • EBITDA margin contracted significantly by 650 basis points to 19.5% from 26.0%

Extraordinary Tax Change Impact

The Government of India implemented significant tax changes effective February 1, 2026:

  • Reduced Compensation Cess on cigarettes to 'Nil'
  • Simultaneously increased GST and Excise Duty significantly
  • Resulting in approximately 50% average increase in tax incidence on cigarettes

Management Commentary

Piyush Srivastava, Managing Director, commented:

  • Characterized the year as "challenging" due to extraordinary tax increases
  • Company is adopting "measured pricing approach" across brands to protect consumer base
  • Identified growth of illicit trade as "significant threat to the industry"
  • Focused on volume recovery through brand portfolio strengthening and disciplined in-market execution
  • Unmanufactured tobacco business affected by ongoing geopolitical instability in Middle East
  • Committed to creating superior value for consumers and stakeholders

Company Background

VST Industries Limited (incorporated 1930) has over nine decades of presence in cigarette manufacture and distribution:

  • Strong focus on innovation, brand building and distribution
  • Products available across 10 lakh retail outlets in India (over 80% market penetration)
  • Two brands (Total and Editions) among Top 10 cigarette brands in country
  • Indents over 20,000+ tonnes of tobacco annually, interacts with 15,000+ farmers
  • Manufacturing facility located at Toopran, Telangana
  • Strong commitment to sustainability projects promoting renewable resources