VST Industries Reports 40% Drop in Q4 Profit

26 Apr 2025 , 11:53 PM

VST Industries recorded a disappointing third-quarter March 2025 results with continued pressure on its operations. Net profit of the firm declined by 40% compared to last year to ₹53 crore from ₹88.2 crore for the same quarter of last year.

Revenue too dipped 6.9% at ₹349 crore from ₹375 crore for last year, with demand softening in challenging market conditions. Operating performance was affected, with EBITDA declining 28.6% to ₹69.3 crore, from ₹97 crore in the corresponding year-ago quarter. Margins were compressed, with the operating margin declining to 20%, from 26% in the prior year, due to rising costs and weaker volumes.

Despite the weak quarterly figures, the company’s board has announced a final dividend of ₹10 per equity share. The dividend payment will be effected within 30 days after shareholders have approved it at the upcoming 94th Annual General Meeting.

The performance shows that the company continues to face headwinds in its core cigarette business in the background of a more challenging macro and regulatory environment.