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Vinati Organics Maintains FY27 Growth Despite Viral Organics Delay, Boosted by Exports
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CNBC TV18•29-09-2026, 11:45
Vinati Organics Maintains FY27 Growth Despite Viral Organics Delay, Boosted by Exports
- •Vinati Organics retains its FY27 guidance of 15% volume growth and 26-27% EBITDA margins, despite a quarter-long delay in its subsidiary Viral Organics' turnaround.
- •Managing Director Vinati Saraf Mutreja expects stronger export realisations from a weaker rupee and robust demand in core businesses to offset the impact of Viral Organics' delayed profitability.
- •Viral Organics' FY27 revenue is now projected to be below ’100 crore, down from an earlier estimate of ’150 crore, but the consolidated outlook for Vinati Organics remains unchanged.
- •Growth in butyl phenols, isobutylene derivatives, IBB, and ibuprofen is anticipated to compensate for the lower contribution from Viral Organics, which is expected to turn profitable in FY28.
- •The company has reapplied for anti-dumping duty against Chinese antioxidant imports, with a decision expected in six months, and projects 30% revenue growth for the antioxidants business in FY27.
Key Questions Answered
Vinati Organics maintains its financial year 2026-27 guidance of 15% volume growth and expects EBITDA margins to stay between 26% and 27%.
The turnaround at Viral Organics has been delayed by one quarter due to re-engineering work, pushing efficient plant operations to January 2027 and profitability to fiscal 2027-28.
Because 55% to 60% of Vinati Organics' sales come from exports, rupee depreciation is helping boost realisations and partially offset revenue impacts from subsidiary delays.
