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VST Industries Ltd

| Audited Financial Results – Q4 & FY Ended March 31, 2026

Report Source

⬤16th Apr 26

Summary : VST Industries reported increased revenue and profit, recommended dividend, but faces indirect tax and new labour code uncertainties.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of Materials consumed for FY26: 68,352 Lakhs.
  2. Employee benefits expense for FY26: 13,927 Lakhs.
  3. Depreciation and amortisation expense for FY26: 10,116 Lakhs.
  4. Revenue from Operations (Gross) for FY26: 204,574 Lakhs.
  5. Net cash generated from Operating Activities: 21,827 Lakhs (FY26).
  6. Net cash from Investing Activities: (3,138) Lakhs (FY26) vs 979 Lakhs (FY25).
  7. Net cash used in Financing Activities: (16,954) Lakhs (FY26).
  8. Potential liabilities from new Labour Codes, final rules pending.
  9. Total Assets increased to 201,583 Lakhs (FY26) from 181,600 Lakhs (FY25).
  10. Total Equity increased to 144,567 Lakhs (FY26) from 132,269 Lakhs (FY25).
  11. Inventories increased to 67,497 Lakhs (FY26) from 48,458 Lakhs (FY25).
  12. Dividend paid to company with significant influence: 10,720.55 Lakhs.
  13. Salaries and other employee benefits to Key Managerial Personnel: 267.71 Lakhs.
  14. Dividend paid to Promoter entities: 5,462.49 Lakhs.
  15. Dividend paid to entities with 20% or more shareholding: 5,258.06 Lakhs.
  16. Standalone financial results, as no subsidiary company exists.

Corporate Overview

  1. Impact of changes in indirect taxes (Compensation Cess, GST, Excise Duty) on cigarettes.
  2. Uncertainty regarding final rules for new Labour Codes and their financial impact.
  3. Single operating segment: tobacco and related products.
  4. Formal and factual reporting of financial results.
  5. Tobacco and related products.
  6. Technical evaluation of Plant and Machinery led to changes in estimated useful lives and full depreciation of certain assets.

Risk Factors

  1. Uncertainty from indirect tax changes.
  2. Impact of new Labour Code rules.
  3. Negative net cash from investing.
  4. Asset depreciation changes impact financials.

Key Drivers

  1. Strong revenue and profit growth.
  2. Recommended final dividend of Rs. 12.
  3. Clarity on new Labour Code rules.
  4. Stable indirect tax policy for cigarettes.

Auditor’s Report

  1. Unmodified opinion on annual financial results.

Board Commentary

  1. Recommended a final dividend of Rs. 12/- per equity share.
  2. Dividend payable within 30 days of shareholder approval at 95th AGM.
  3. Changes in indirect taxes on cigarettes.
  4. Uncertainty of new Labour Code rules.
  5. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  6. New Labour Codes' final rules pending, impacting liabilities.

Corporate Governance

  1. Auditor's report refers to Code of Ethics.
  2. Auditor's report mentions compliance with ethical requirements and independence.
  3. Audit Committee reviewed and approved the results.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalization of Central/State Rules for Labour Codes.

Performance Drivers

  1. Increased revenue from operations.
  2. Growth in profit after tax.

Risk Control Measures

  1. Evaluated incremental impact of Labour Codes and recognized additional gratuity and leave liability.
  2. Monitoring finalization of Central/State Rules for Labour Codes.

Critical Risks

  1. Changes in indirect taxes (Compensation Cess, GST, Excise Duty) on cigarettes.
  2. Uncertainty regarding final rules for new Labour Codes and their impact on liabilities.