Vinyl Chemicals (India) Ltd – Q2 FY26 Results: When Your Parent Is Fevicol, You Stick Around Even If Margins Don’t!

1. At a Glance

If you ever thought chemistry was boring, Vinyl Chemicals (India) Ltd (VCIL) is here to prove that the real drama happens when margins vanish faster than acetone in a lab. The ₹467 crore market cap Parekh Group baby, promoted by Pidilite Industries (yes,Fevicolfame), trades at ₹254 a share — that’s 27% below its 52-week high, which feels like a “discount sale” even Fevicol wouldn’t want to glue back. With a P/E of 23.8 and dividend yield of 2.76%, the stock looks like a well-behaved student in a volatile chemical classroom — neat, polite, and slightly underperforming.

For Q2 FY26 (September 2025), revenue clocked in at ₹151.89 crore, barely moving 1.03% YoY. PAT, however, slipped dramatically by 43.9% YoY to ₹2.88 crore. The operating margin — a fragile 1.76% — shows this chemical trader is perhaps selling chemistry lessons in “how to evaporate profits.” ROE stands at a respectable 15.6%, but the company’s recent results prove that even chemical trading can lose reaction speed when global VAM prices and import costs fluctuate.

2. Introduction

Welcome to the world of Vinyl Chemicals — the company that once made Vinyl Acetate Monomer (VAM) but now just trades it like a middleman at a Sunday market for molecules. Once upon a Mahad (Raigad, Maharashtra), this firm had its own manufacturing unit, but after a demerger, the production went to Pidilite Industries. Now, Vinyl Chemicals essentially exists as the cool cousin who doesn’t work in the factory but brings the goods from abroad and sells them at home.

In India’s chemical bazaar, VAM is the stuff that holds Fevicol together — quite literally. It’s a key input for adhesives, sealants, paints, and industrial binders. Pidilite’s Fevicol empire runs on it, and guess who supplies almost 95% of Pidilite’s VAM requirement? Yep, Vinyl Chemicals. It’s like the supplier and the customer sit across the same dining table.

But life isn’t easy when you’re the “trader child” of a manufacturing giant. Prices of imported VAM swing with crude oil, logistics costs, and global demand. One bad quarter in China, one port delay, and margins in Mumbai melt faster than glue in the sun. Still, with a near debt-free balance sheet, strong parentage, and sticky dividends (pun fully intended), Vinyl Chemicals has managed to stay solvent and solvent-loving.

3. Business Model – WTF Do They Even Do?

Let’s simplify the business: Vinyl Chemicals is the middleman for Vinyl Acetate Monomer (VAM). They don’t make it — theymove it. They import from global suppliers and sell it mainly to Indian customers — primarily Pidilite Industries. In a way, the company acts like Fevicol’s personal VAM dealer.

The irony? Once upon a time, Vinyl ChemicalsmanufacturedVAM, but that arm was absorbed by Pidilite. Since then, VCIL has gone full trader mode — buy low abroad, sell higher here, pray forex doesn’t spoil your party.

Here’s the funny bit — the company imports around one-third of India’s total VAM. That’s like being the “Amazon Prime” for a single molecule. The risk, of course, is supplier concentration. They rely heavily on three main overseas suppliers. Imagine being dependent on just three chemical uncles for your entire stock. If one has a bad shipment, your quarterly profits do the disappearing act.

The business thrives when global VAM prices are steady. When prices spike, the company struggles to pass on costs immediately, and margins shrink. Their game is volume, not fat margins — think of them as the “D-Mart of chemicals” but with fewer shoppers and more inventory headaches.

4. Financials Overview

Quarterly Results Locked: Q2 FY26 (Sep 2025)Figures in ₹ Crore

Commentary:If trading chemicals were a sport, Q2 FY26 would be the “rain delay” quarter. Sales were steady, but margins dissolved faster than sugar in hot water. EBITDA margin slipped to just 1.76%, which is lower than India’s GDP growth target