The company’s net profit fell to ₹42 crore in the quarter ended June 30, 2026, from ₹56 crore a year earlier. Revenue declined 14% to ₹257 crore from ₹298 crore in the corresponding quarter last year.
Operating performance also weakened during the quarter. EBITDA fell 35.5% year-on-year to ₹50 crore from ₹77 crore, while EBITDA margin contracted to 19.3% from 25.8% a year ago.
VST Industries said that with effect from February 1, 2026, the Government of India reduced the Compensation Cess on cigarettes to nil while significantly increasing GST and excise duty on the product. The company said the changes resulted in the overall tax incidence on cigarettes increasing by about 50% on average.
Illicit trade remains key concern
Commenting on the performance, Managing Director Piyush Srivastava said the company expects a challenging year in view of the extraordinary tax increases.
“Given the extraordinary tax increases, a challenging year awaits us. We are adopting a measured pricing approach across our brands to help protect our consumer base. However, growth of illicit trade remains a significant threat to the industry,” he said.
Srivastava added that the company is focused on recovering volumes by strengthening its brand portfolio and maintaining disciplined in-market execution.
He also said that ongoing geopolitical instability in the West Asia continues to weigh on growth in the company’s unmanufactured tobacco business.”We remain steadfast in our commitment to creating superior value for consumers and stakeholders,” he said.
Shares of VST Industries Ltd ended 1.64% lower at ₹230.85 on the NSE on Tuesday, ahead of the company’s June quarter earnings announcement.
Also Read: DCM Shriram Q1 net profit jumps over six-fold on higher revenue and EBITDA growth
