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VST Industries Shares Jump 15% On Solid Q4 Earnings; Cigarette Business Drives Growth

  • 17 Apr 2026 at 12:02 PM IST
  • Market News
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Shares of VST Industries surged sharply after strong fourth-quarter results. However, the company’s management has flagged certain challenges for the upcoming months, which could impact profit margins.

Shares of VST Industries saw sharp buying interest on Friday after the company reported strong numbers for the fourth quarter of the financial year 2025-26.

The VST Industries shares moved up over 15% to ₹278.71 in early trade, extending gains seen over the past few sessions. At 11:30 AM, the stock was trading at ₹276.50, up 14.48%.

The rally was prompted by the company's better performance in its main cigarette business, which was helped by price increases and more effective execution in the market.

The March 2026 quarter turned out strong on the profitability front. Net profit surged 120% year on year to ₹116.7 crore. It stood at ₹53 crore in the same period last year.

The company's revenue also surged by 52% to ₹689 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply by 61% to ₹450 crore.

Alongside strong Q4 results, the company’s board proposed a final dividend of ₹12 per share for shareholders. The payout, if approved, will be credited after the upcoming annual general meeting.

The stock has been on an upward trend recently. It gained significantly over the past week and month, although it still trades below its 52-week high touched last year.

Friday’s move adds to the recent momentum, with investors reacting positively to the earnings update.

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Although the quarter was excellent, the company also pointed out a few challenges for the future. It noted that geopolitical tensions could continue to impact parts of its business, particularly in tobacco sourcing.

At the same time, it remains focused on strengthening its product portfolio and improving execution in the market.

Sources:

The Economic Times

CNBC TV18

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