Target: ₹1,552CMP: ₹1,340Despite stable growth of its major revenue contributor, ATBS, overall Vinati Organics’ revenue from operations fell to ₹603.92 crore in Q4FY26 from ₹648.46 crore in Q4FY25, down 6.9 per cent. With growing applications of high-purity ATBS in water treatment, mining, detergents, etc. Vinati Organics (VOL) completed its capacity expansion of ATBS from 40,000 mt to 50,000 mt in FY26. The company plans to ramp up production of ATBS, but susceptibility of demand continues to cast shadow on ATBS throughput.Operating margin inched up to 28.2 per cent in Q4FY26. In spite of 150 bps increase in net profit margins — as a result of effectively passing on both raw material and logistics cost fluctuations — net profits remained nearly flat at ₹123.86 crore in Q4FY26. The company foresees antioxidants to become a bigger revenue contributor in future. The stock currently trades at 30.1x FY27e EPS of ₹43.14 and 25.1x FY28e EPS of ₹51.73. We expect VOL to have an operating margin in the range of 27-28 per cent as a result of improving margins in ATBS and ramping up in production of antioxidants. The company is spending on R&D to introduce new products in its subsidiary Veeral Organics, which is expected to generate meaningful sales.These measures will aid in revenue growing at a CAGR of 12.5 per cent over the next two years. Weighing odds, we assign ‘accumulate’ rating on the stock with target price of ₹1,552, based on 30x FY28e EPS.Published on July 6, 2026