Vinyl Chemicals (I) Ltd (VINYLINDIA)
🎯 Key Takeaways
- Vinyl Chemicals (India) Ltd appears to be in a mature, cash-generating phase with stable governance and modest profitability, though recent financial trends show revenue contraction and declining margins. The company maintains a debt-free balance sheet and consistent shareholder returns, but lacks growth momentum evident in shrinking top-line performance.
- Revenue declined 44.6% QoQ to ₹100 in Q1FY27.
- ⚠️ Persistent revenue decline across four consecutive quarters with no signs of stabilization in core business volumes.
- Market Cap
- ₹400
- P/E Ratio
- 21.4
- P/B Ratio
- 3.07
- ROE
- 14.3%
- ROCE
- 19.2%
- Debt/Equity
- 0.00
- Div Yield
- 3.21%
- Promoter
- 50.4%
📖 The Story
Vinyl Chemicals (India) Ltd appears to be in a mature, cash-generating phase with stable governance and modest profitability, though recent financial trends show revenue contraction and declining margins. The company maintains a debt-free balance sheet and consistent shareholder returns, but lacks growth momentum evident in shrinking top-line performance.
📰 What's Happening
The company conducted its 40th Annual General Meeting on 5 June 2026 via video conferencing, where it adopted audited financial statements for FY 2025-26, declared a dividend of ₹7 per share, reappointed N.K. Parekh as Director and M.B. Parekh as Managing Director for five years, and approved related party transactions with Pidilite Industries up to ₹1,300 crores. Shareholder participation was entirely virtual, with 39,783 shareholders on record, including promoter and public entities. The AGM also included approval of director commissions and re-appointment of independent director P.D. Shah. All resolutions passed with requisite majority, and voting was conducted through NSDL from 2 to 4 June 2026, fully compliant with SEBI e-voting norms.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 152 | 169 | 180 | 100 |
| Operating Profit | 3 | 4 | 3 | 3 |
| OPM % | 1.7% | 2.2% | 1.6% | 2.7% |
| Net Profit | 3 | 5 | 5 | 7 |
| EPS | ₹1.58 | ₹2.47 | ₹2.53 | ₹3.61 |
Revenue has declined sequentially from ₹180 crore in Mar 2026 to ₹100 crore in Jun 2026, with operating profit margin compressing from 1.6% to 2.7% despite cost control efforts. Net profit and EPS have also trended downward, reaching ₹7 crore and ₹3.61 in the latest quarter, down from ₹5 crore and ₹2.53 previously. This suggests ongoing pressure on core operations, though margins improved slightly in the most recent quarter, possibly reflecting cost optimization or favorable input cost movements.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the available filings beyond reaffirming strategic continuity through director re-appointments and approval of capital allocation for related party transactions with Pidilite Industries. The dividend declaration of ₹7 per share signals commitment to shareholder returns, but no new growth initiatives or revenue targets were disclosed in the AGM materials or annual report.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 2 | 2 | 2 | 2 |
| Reserves | 125 | 113 | 128 | 119 |
| Borrowings | 1 | 0 | 0 | 0 |
| Total Liabilities | 262 | 234 | 233 | 207 |
| Fixed Assets | 1 | 1 | 1 | 1 |
| Investments | 68 | 79 | 52 | 0 |
| Total Assets | 262 | 234 | 233 | 207 |
The balance sheet remains exceptionally conservative, with zero borrowings and total assets declining slightly to ₹233 crore as of March 2026 from ₹262 crore a year ago, while equity and reserves remain stable. This indicates minimal capital expenditure or expansion activity, consistent with a non-growth posture. The company is not reinvesting aggressively, and asset reduction may reflect liquidation of older inventory or plant assets without replacement.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -16 |
| Investing | +21 |
| Financing | -13 |
| Net Cash Flow | -8 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 50.4% | 50.4% | 50.4% | 50.4% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 40.9% | 40.7% | 40.7% | 40.7% |
| # Shareholders | 40,756 | 39,684 | 38,831 | 38,667 |
Promoter holding remains steady at 50.41% over the last four quarters, with no signs of dilution or stake sales. Institutional ownership (FII/DII) is negligible, collectively holding less than 0.1% of shares, while public shareholders have slightly reduced their stake from 40.86% to 40.71%. The shareholder base is highly fragmented, with over 38,000 individual shareholders, suggesting retail dominance and limited foreign investor interest.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.53 L Cr | 57.6 | 33.4% | — | 0.01 |
| SRF | 73,810 | 34.1 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,814 | 96.7 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,774 | 79.7 | 9.6% | — | 0.34 |
| NAVINFLUOR | 43,256 | 54.7 | 22.2% | — | 0.31 |
| GODREJIND | 36,153 | 30.8 | 9.2% | — | 4.57 |
| HSCL | 33,807 | 42.0 | 20.7% | — | 0.16 |
| AETHER | 23,029 | 97.7 | 13.8% | — | 0.08 |
| DEEPAKNTR | 21,155 | 27.0 | 15.3% | — | 0.26 |
| CASTROLIND | 19,891 | 18.7 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent revenue decline across four consecutive quarters with no signs of stabilization in core business volumes. 2. Margin improvement appears fragile, driven by cost control rather than revenue growth, raising sustainability concerns. 3. Heavy reliance on a single related party (Pidilite Industries) for material transactions up to ₹1,300 crores introduces concentration risk. 4. Lack of growth initiatives or forward-looking guidance may limit investor confidence and future capital access.
📋 Recent Filings
- Announcement2026-09-24Vinyl Chemicals (I) Ltd announced that its trading window will close on 30 September 2026 and remain shut until 48 hours after the unaudited quarterly…
- 🔴 Announcement2026-09-11Vinyl Chemicals (I) Ltd received an affirmation of its bank loan ratings from India Ratings & Research on September 11, 2026, confirming A+ and A1+ ra…
- 🟡 Board Meeting2026-06-23Vinyl Chemicals (India) Limited held its 40th Annual General Meeting on 5 June 2026 via video conference, adopting audited financial statements, decla…
- 🟡 Board Meeting2026-06-05Vinyl Chemicals (India) Limited held its 40th AGM on 5th June 2026 via video conferencing, concluding at 4:20 p.m. IST after starting at 3:30 p.m. Sev…
- 🟡 Board Meeting2026-06-05Vinyl Chemicals (India) Limited held its 40th AGM on 5th June 2026 via video conferencing, concluding at 4:20 PM IST after a 15-minute extended e-voti…
- Announcement2026-06-01Vinyl Chemicals (India) Limited announced that unclaimed dividends from FY 2018-19 will be transferred to the IEPF Authority by 31 August 2026, requir…
- 🔴 annual report2026-05-12Vinyl Chemicals (India) Limited announced its 40th Annual General Meeting scheduled for 5 June 2026 at 3:30 p.m. via video conferencing, along with th…
- 🔴 annual report2026-05-12Vinyl Chemicals (India) Limited announced its 40th Annual General Meeting scheduled for 5 June 2026 at 3:30 p.m. via video conferencing, along with th…
- 🟡 Board Meeting2026-05-09Vinyl Chemicals (India) Limited announced its 40th Annual General Meeting scheduled for 5th June 2026 via video conference, with notices published in …
- 🟡 Board Meeting2026-05-07Vinyl Chemicals announced its 40th Annual General Meeting will be held on 5 June 2026 via video conference, with the record date set for 22 May 2026 t…
🧠 Analyst's Read
The company operates as a stable, dividend-paying entity with a pristine balance sheet but is experiencing structural headwinds in its core chemical business. Investors should monitor whether margin recovery can sustain without revenue growth and assess the strategic rationale behind continued engagement with Pidilite Industries amid shrinking operations. Absent new catalysts, the stock may reflect financial stability rather than investment upside.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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