Vinati Organics Limited held an Earnings Conference Call on May 16, 2025, to discuss the financial and operational performance for the fourth quarter and financial year ended March 31, 2025.
Key management present included Ms. Vinati Saraf Mutreja (Managing Director), Mr. N. K. Goyal (CFO), Mr. Gulshan Sakhuja (Executive President), and Mr. Kaviraj Devaraj (VP - Corporate Finance).
For Q4 FY25 (Consolidated):
Net Income (including other income) surged 24% quarter-on-quarter to ₹655 crore (from ₹528 crore in Q3 FY25).
EBITDA increased 25% quarter-on-quarter to ₹187 crore (from ₹149 crore).
PAT expanded 31% quarter-on-quarter to ₹123 crore (from ₹94 crore).
For FY25 (Consolidated):
Net Income (including other income) grew 18% year-on-year to ₹2,292 crore (from ₹1,939 crore in FY24).
EBITDA rose 23% year-on-year to ₹625 crore (from ₹509 crore).
PAT increased 25% year-on-year to ₹405 crore (from ₹323 crore).
ATBS segment showed 30% volume growth in FY25, driven by oil & gas and enhanced oil recovery demand. Global market share steady at 60-65%. Expects continued double-digit growth in FY26.
Butyl Phenol segment grew 26% in FY25, with sustained growth expected in FY26.
IBB saw a 27% decline in FY25 due to demand challenges.
Customized product segment was largely flat year-over-year.
IB and HPMTBE achieved strong growth in FY25, expected to continue in FY26.
Antioxidants (AO) business posted an impressive 70% revenue increase in FY25 despite market challenges. Expects robust growth in FY26, driven by market expansion and new product development (novel antioxidant for lubricant additives). AO plant running at ~50% capacity, expects to reach 90% utilization over next 2 years.
Capex:
Allocated approximately ₹400 crore towards capex in FY25, including VOPL.
ATBS capacity expansion (brownfield) is scheduled for completion in two phases: Phase 1 (25-30% capacity increase) by June 2025, and the next phase a year later. Total ATBS capex budgeted at ₹300 crore.
Under VOPL (Veeral Organics Pvt Ltd), new products including Anisole, 4-MAP, TAA, and PTAP are set for introduction across Q2 and Q3 of FY26. MEHQ production has resolved teething issues and is now commercially produced and sold (captive use will be ~30% once BHA is fully commercialized).
VOPL capex is approximately ₹500 crore in total, with about ₹250 crore completed and ₹250 crore remaining. Expects revenue of ~₹100 crore from VOPL in FY26 and asset turns above 1:1 at full utilization.
Solar capacities (total 32.5 MW) also contributed to fixed asset additions.
R&D team is developing 3-4 new products, which could lead to the next leg of capex announcements in coming quarters.
Yearmarked approximately ₹360 crore for FY26 capex.
Outlook for FY26:
Priorities are driving revenue growth across ATBS, Butyl Phenols, and Antioxidants, optimizing margins through operational efficiencies, and strategic investments.
Management projects a 20% CAGR in revenue over the next three years.
Expects EBITDA margin of 26-27% (excluding other income) to be sustainable over the long term (3-5 years).
Domestic sales share has increased to 55% (from 70% 3-4 years ago).
Combined revenue from Butyl Phenols and Antioxidants is expected to be between ₹800 crore to ₹850 crore in FY26 (from ₹600 crore in FY25).