VST INDUSTRIES LTD

Manufactures and sells cigarettes in India, the company's sole product line, with the unmanufactured tobacco business contributing the balance. For FY26, the company reported total revenue of Rs 2,045.74 cr and cigarette revenue of Rs 1,732 cr, with net profit of Rs 292.26 cr and an EBITDA margin of 24.01%. Monthly cigarette volumes stood at 696 million sticks, up 8.6% YoY, supported by productivity initiatives and an enhanced brand portfolio. The cost structure is dominated by other operating expenses at 37.7% of revenue, followed by materials at 33.4% (largely tobacco leaf), with employee costs at 6.8%, depreciation at 4.9% and capex at 2.1%. The company carries no outstanding debt and operates manufacturing facilities including a Zero Liquid Discharge plant at Toopran, with 33% of its power coming from green sources and a 2030 carbon-neutrality target. Following the government's February 2026 removal of Compensation Cess and a simultaneous hike in GST and excise duty on cigarettes, Q1FY27 net revenue fell 13% YoY to Rs 256 cr, cigarette volumes dropped 14.4% QoQ, and EBITDA margin compressed to 19.5%.