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In-line performance Earnings snapshot – 1QFY26

• VRL’s revenue grew 2% YoY to ~INR7.4b (-8% QoQ), in line with our estimate.
• Volume dipped 13% YoY to 0.93m tonnes, while realization grew by 17% YoY to INR 7,852/tonne, driven by a price hike undertaken. Volume drop was mainly due to contract restructuring and the voluntary exit of certain low-margin contracts.
• EBITDA margins stood at 20.4% (+840bp YoY and -270bp QoQ) against our estimate of 21.3%. EBITDA margin continued to be robust despite volume pressure, driven by cost rationalization efforts. EBITDA grew 74% YoY to INR 1.5b in 1Q FY26 (in-line).
• Fuel costs were ~28.7% of total income in 1QFY25, which decreased to 25.4% in 1QFY26. Lorry charges dropped to 3.9% from ~7.4% of total income over the same period.
• Strong operating performance saw APAT increase to INR 500m in 1Q FY26 v/s INR 134m in 1Q FY25 (in-line).
• The Board approved a company-wide salary revision for the employees w.e.f. Aug’25. The said revision would hurt the overall profitability margin and is expected to be to the tune of ~2-3% of the revenue.

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