Can Vidhi Specialty Sustain Its Margin Growth Amid Slower Revenue?
About Vidhi Specialty Chemicals
Vidhi Specialty is a leading manufacturer of food-grade colours and specialty chemicals used in FMCG, confectionery, beverages and pharma applications. The company has a global footprint across 80+ countries.
The firm reported a slight dip in revenue but improved EBITDA and margin expansion supported by better capacity utilisation and higher-value product sales.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹75 Cr | ↓ 18% |
| EBITDA | ₹17.7 Cr | ↑ 16% |
| EBITDA Margin | 23.6% | ↑ 7 pps |
| Net Profit | ₹10.5 Cr | ↑ 2% |
Revenue ₹75 Cr — affected by lower export demand. EBITDA ₹17.7 Cr — margin uplift from improved product mix. Net Profit ₹10.5 Cr — steady due to operating leverage.
For insights on FMCG-chemical cross-sector trends, traders may review the Nifty Future Trade published by Indian-Share-Tips.com.
Peer Comparison
| Company | Focus Area | EBITDA Margin |
|---|---|---|
| Vidhi Specialty | Food-Grade Colours | 23.6% |
| Kiri Industries | Dyes & Pigments | 18% |
| Bodal Chemicals | Basic Dyes | 14% |
Strengths & Weaknesses
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Opportunities & Threats
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Valuation & Investment View
- Short-term: Stable, driven by margin improvement.
- Medium-term: Positive as new exports recover.
- Long-term: Attractive given diversification into high-margin products.
Long-only investors monitoring specialty chemical trends can refer to the BankNifty Future Trade note for sector-aligned positioning.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, observes that Vidhi’s efficiency focus and product diversification could keep profits resilient. Read further insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
