VST Industries posted a sharp 120.16% YoY jump in standalone net profit to Rs 116.69 crore in Q4 FY26, compared with Rs 53 crore in Q4 FY25. Revenue from operations, excluding excise duty, rose 31.09% YoY to Rs 457.06 crore.

Profit before tax surged 130.60% YoY to Rs 154.55 crore, while EBITDA jumped 197.14% to Rs 208 crore. EBITDA margin expanded significantly to 30.3% from 15.3% a year ago, indicating strong operating leverage.

On the cost front, total expenses increased 37.18% YoY to Rs 544.34 crore. Employee benefit expenses rose 16.16% YoY to Rs 37.66 crore, while cost of materials consumed declined 31.91% YoY to Rs 137.38 crore.

Management highlighted robust volume recovery driven by an improved brand portfolio and execution. However, it flagged geopolitical challenges in the Middle East impacting the unmanufactured tobacco business and cautioned about a tough year ahead due to steep tax increases.

The strong earnings momentum at VST Industries lifted sentiment across cigarette stocks, with investors betting on improved profitability in the sector.