Shares of Vadilal Industries Ltd declined over 2% in Monday’s session, reacting to the company’s Q2 FY26 financial results that showed a dip in quarterly profit despite higher revenue. The stock fell 2.06% to Rs 5,185 on the NSE, down from the previous close of Rs 5,294.
Earnings reaction
Vadilal Industries reported a 14.4% year-on-year (YoY) decline in net profit to Rs 33.42 crore for the quarter ended September 30, 2025, compared to Rs 38.98 crore in Q2 FY25.
Revenue from operations, however, rose 15.5% YoY to Rs 341.30 crore, reflecting healthy top-line growth driven by seasonal demand and product diversification.
Sequentially, the company’s net profit dropped 50% from Rs 66.98 crore in Q1 FY26, while revenue slipped 32.5% from Rs 505.91 crore, in line with seasonal trends after the summer peak.
Stock performance and valuation
At current levels, Vadilal Industries commands a market capitalization of Rs 37,270 crore. The stock has a P/E ratio of 26.67 and offers a dividend yield of 0.41%.
In today’s trade, the stock moved between a day’s low of Rs 5,100 and a high of Rs 5,349, reflecting cautious investor sentiment post-results. Over the past year, the shares have fluctuated between Rs 3,414 and Rs 7,398.
Peer comparison
Among peers, Dodla Dairy gained 2.06% to Rs 1,208, while Heritage Foods remained largely flat at Rs 481.05. The broader FMCG and dairy segment traded mixed, mirroring subdued investor response to Q2 earnings across the sector.
Outlook
While the company maintained double-digit revenue growth, the profit contraction weighed on sentiment as input costs and tax provisions pressured margins. Investors will watch how Vadilal manages cost controls and sustains volume growth in the coming quarters, especially with the winter season typically softer for ice cream sales.
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