Revenue from operations (excluding excise duty) fell 13.91% year on year (YoY) to Rs 256.46 crore in Q1 FY27.

Total expenses (including excise duty) increased sharply to Rs 823.21 crore in Q1 FY27 from Rs 348.94 crore in Q1 FY26, primarily due to the higher GST and excise duty following the tax changes effective 1 February 2026. Cost of materials consumed stood at Rs 122.79 crore (down 15.68% YoY), while employee benefits expense increased 5.91% YoY to Rs 35.79 crore during the period under review.

EBITDA declined 35.06% to Rs 50 crore in Q1 FY27 from Rs 77 crore in Q1 FY26. EBITDA margin reduced to 19.5% in Q1 FY27, compared with 26% in Q1 FY26.

Commenting on the performance of the company Piyush Srivastava, Managing Director, said, “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. We are focused on recovering volumes by strengthening our brand portfolio and disciplined in-market execution. In our unmanufactured tobacco business, ongoing geopolitical instability in the Middle East continues to weigh on growth. We remain steadfast in our commitment to creating superior value for consumers and stakeholders.'

VST Industries is engaged inter-alia in manufacture and trading of Cigarettes, Tobacco and Tobacco products.