Financial Performance Summary

VST Industries Limited announced its unaudited financial results for the quarter and half year ended 30th September, 2026. The company reported significant pressure on year-to-date performance due to an extraordinary tax increase implemented by the Government of India.

Key Financial Metrics (₹ Crore)

| Particulars | Q2FY27 | Q1FY27 | Q2FY26 | H1FY27 | H1FY26 | YoY (%) |

| Cigarette Volume (average p/m in mn) | 562 | 611 | 695 | 586 | 704 | -16.8 |

| Revenue from Operations: | | | | | | |

| • Cigarette (net of excise duty) | 187 | 216 | 243 | 403 | 498 | -19.1 |

| • Unmanufactured Tobacco, etc | 55 | 40 | 93 | 95 | 136 | -30.1 |

| Net Revenue | 242 | 256 | 336 | 498 | 634 | -21.4 |

| EBITDA | 43 | 50 | 79 | 93 | 156 | -40.4 |

| EBITDA Margin (%) | 17.9 | 19.4 | 23.4 | 18.7 | 24.6 | -590bps |

| Profit after Tax | 41.1 | 42.4 | 59.2 | 83.5 | 115.3 | -27.6 |

Performance Analysis

Revenue Breakdown:

  • Net Revenue declined by 21.4% YoY to ₹498 crore for H1FY27 from ₹634 crore in H1FY26
  • Cigarette business (net of excise duty) contributed ₹403 crore in H1FY27, down 19.1% YoY
  • Unmanufactured Tobacco business contributed ₹95 crore in H1FY27, down 30.1% YoY

Profitability Metrics:

  • EBITDA decreased by 40.4% YoY to ₹93 crore in H1FY27 from ₹156 crore in H1FY26
  • EBITDA Margin contracted by 590 basis points to 18.7% in H1FY27 from 24.6% in H1FY26
  • Profit after Tax declined by 27.6% YoY to ₹83.5 crore in H1FY27 from ₹115.3 crore in H1FY26

Volume Metrics:

  • Cigarette volumes averaged 586 million units per month in H1FY27, down 16.8% YoY from 704 million units
  • Quarterly volumes showed sequential improvement: Q2FY27 at 562 million units vs Q1FY27 at 611 million units
Tax Policy Impact

With effect from 1st February 2026, the Government of India implemented significant tax changes:

  • Reduced the levy of Compensation Cess on cigarettes to 'Nil'
  • Simultaneously increased GST and Excise Duty on cigarettes significantly
  • Resulted in incidence of tax on cigarettes increasing by about 50% on average
Management Commentary

Piyush Srivastava, Managing Director, commented on the performance:

  • "The significant increase in cigarette taxation has created a challenging operating environment"
  • Impacted consumer affordability and legal industry volumes
  • Company focus remains on:
  • Strengthening brands
  • Adopted measured pricing approach
  • Improving distribution effectiveness
  • Driving cost efficiencies
  • In unmanufactured tobacco business, ongoing geopolitical situation continues to weigh on growth
  • Company remains committed to navigating challenges with discipline
  • Focus on building a resilient business for sustainable long-term growth
Company Background

VST Industries Limited was incorporated in 1930 under its erstwhile name of The Vazir Sultan Tobacco Company Limited. The Company is a leading player in the manufacture and distribution of cigarettes and tobacco leaf with over nine decades of presence. Its products are available across 10 lakh retail outlets in India with over 80% market penetration. Two brands (Total and Editions) are recognized amongst the Top 10 cigarette brands in the country. The Company indents over 20,000+ tonnes of tobacco and interacts with more than 15,000 farmers. Manufacturing facility is located at Toopran (Telangana).