A well-known tobacco stock suddenly grabbed attention in the market today. VST Industries Ltd saw strong investor buying after releasing its September quarter (Q2FY26) results. Steady profit growth and operational improvements boosted overall sentiment.
Share Jumps Over 9%
VST Industries’ stock opened at ₹262.05, up from the previous close of ₹258.70, and surged to an intraday high of ₹283.35, marking a nearly 9.5% rise.
The company’s market capitalization has now reached approximately ₹4,535 crore.
Snapshot of Q2 Results
The company reported steady earnings along with notable operational enhancements.
| Financial Metric | Q1 FY26 | Q2 FY26 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Sales (₹ Cr) | 298 | 336 | +12.8% | -6.7% |
| Operating Profit (₹ Cr) | 77 | 79 | +2.6% | +16.2% |
| Operating Margin | 26% | 23% | -3% | +4% |
| Profit Before Tax (₹ Cr) | 76 | 78 | +2.6% | +20% |
| Net Profit (₹ Cr) | 56 | 59 | +5.4% | +22.9% |
| EPS (₹) | 3.30 | 3.49 | +5.8% | +24.6% |
This marks the third consecutive quarter of rising net profit, strengthening investor confidence.
Operational Highlights
During the September quarter, the company delivered key operational improvements:
- Cigarette Volume: 695 million units (up from 632 million, +10%)
- Cigarette Segment Revenue: ₹358 crore (+9.5%)
- Unmanufactured Tobacco Revenue: ₹92 crore (-30.8%)
- EBITDA Margin: 23.4% (vs. 18.8% last year)
Clearly, the core cigarette business is showing healthy recovery, while the raw tobacco segment continues to face pressure.
Management Commentary
Whole-Time Director Sanjay Wali stated:
“Our strengthened portfolio and improved execution in micro markets have driven volume recovery. Cost control and digitization helped deliver double-digit profit growth. We remain committed to delivering enhanced value to both consumers and stakeholders.”
About the Company
Established in 1930, VST Industries Ltd (formerly The Vazir Sultan Tobacco Company) is among India’s leading cigarette manufacturers.
Key Highlights:
- Presence in over 1 million retail outlets
- Market coverage exceeding 80%
- Popular brands include Total and Editions (among India’s top 10 cigarette brands)
- Farmer network of 15,000+ growers
- Annual tobacco sourcing of 20,000 tons
- Manufacturing units in Hyderabad and Toopran (Telangana)
The company is also focusing on sustainability and renewable energy initiatives.
Conclusion
VST Industries’ Q2 results show that the company has delivered steady operational performance, especially with improving cigarette volumes and profitability. Although the raw tobacco segment remains weak, the overall growth trend is positive and has renewed market interest.
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