Veritas (India) Ltd (512229)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Veritas (India)'s revenue was ₹898 Cr (+52.9% year on year, +68.7% on the previous quarter), and net profit ₹3.7 Cr (-84.8% year on year); the operating margin was 2.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹898 | +52.9% | +68.7% |
| Operating profit | ₹20.1 | -44.2% | +123.1% |
| Net profit | ₹3.7 | -84.8% | from loss |
| EPS (₹) | 1.36 | -84.9% | from loss |
| Operating margin | 2.2% | — | — |
📢 Recent Corporate Announcements
Veritas (India) has issued physical letters to shareholders who have not registered their email addresses, providing a web link to the FY 2025-26 Annual Report. This is a routine regulatory filing under SEBI Regulation 36 to ensure all shareholders can access financial disclosures. The company's financial context shows a significant revenue contraction to ₹3,113 Cr in FY26 from ₹4,099 Cr in FY25. Net profit also saw a sharp decline to ₹20 Cr from ₹114 Cr in the previous year, reflecting a challenging fiscal period.
- Physical letters dispatched on August 13, 2026, to shareholders without registered email addresses.
- Provides the exact web-link pathway for the Annual Report for the Financial Year 2025-26.
- Compliance filing submitted pursuant to Regulation 36 and 30 of SEBI LODR Regulations.
- Company reported a TTM revenue of ₹3,113 Cr and a net profit of ₹20 Cr for the period ending March 2026.
Veritas (India) Ltd has released its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, confirming that 100% of its standalone turnover is derived from wholesale chemical trading. The company operates with a very lean standalone structure, employing only 10 permanent staff members. Despite the small headcount, the company experienced a high employee turnover rate of 42.11% during the year. The report also details a standalone net worth of Rs 195.75 Cr, which is significantly lower than the consolidated net worth of Rs 2,865 Cr, highlighting that major operations reside within its 8 subsidiary entities.
- 100% of standalone turnover is generated from the wholesale trading of chemicals.
- The company maintains a minimal standalone workforce of 10 permanent employees.
- Employee turnover rate for FY 2025-26 was 42.11%, though this is an improvement from 133.33% in FY 2024-25.
- Female representation on the Board of Directors is 16.67% (1 out of 6 members).
- Standalone net worth for CSR purposes was reported at Rs 195.75 Cr (Rs 19,575.29 lakhs).
Veritas (India) Ltd has released its FY26 Annual Report, confirming a dividend of Rs 0.05 per share (5% of face value). The company reported a significant decline in financial performance for FY26, with revenue falling 24% to Rs 3,113 Cr and PAT dropping 82% to Rs 20 Cr compared to FY25. A key strategic shift involves the approved sale of Verasco FZE (UAE) assets due to changing trade routes in the Strait of Hormuz. The company is now heavily focused on its Rs 2,050 Cr Dighi Port project (VPPL), which represents a major pivot toward manufacturing and energy infrastructure.
- Dividend of Rs 0.05 per share recommended for FY26, totaling a payout of Rs 13.40 lakh.
- FY26 Revenue contracted to Rs 3,113 Cr from Rs 4,099 Cr in the previous year.
- Net Profit for FY26 stood at Rs 20 Cr, a sharp decline from Rs 114 Cr in FY25.
- Strategic sale of Verasco FZE (UAE) assets approved in January 2026 to mitigate geopolitical and trade route risks.
- Dighi Port project (VPPL) involves a total investment of Rs 2,050 Cr, approximately 71.5% of the company's net worth.
Veritas (India) Ltd has scheduled its 41st Annual General Meeting (AGM) for September 03, 2026. The board has recommended a dividend of 5% (₹0.05 per share) for FY26, totaling a payout of ₹13.4 lakh. Key agenda items include the re-appointment of Mr. Paresh V. Merchant as Managing Director for a three-year term starting December 2026 and approval for material related party transactions within its subsidiaries. This follows a challenging FY26 where net profit dropped to ₹20 Cr from ₹114 Cr in the previous year.
- Dividend of 5% (₹0.05 per share) recommended on 2,68,10,000 equity shares of ₹1 face value
- Total dividend payout of ₹13,40,500 to be paid from accumulated free reserves
- Re-appointment of Mr. Paresh V. Merchant as Managing Director for 3 years (Dec 28, 2026, to Dec 27, 2029)
- Record date for dividend eligibility fixed as August 28, 2026
- Shareholders to vote on material related party transactions for subsidiaries Veritas International FZE and Ignivis Trading FZE
Veritas (India) has granted final approval for the disposal of assets and liabilities of its material subsidiary, Verasco FZE (Dubai), to Inergy FZE (Sharjah) for up to USD 51 million (approx. ₹428 cr). While Verasco contributed only 2.14% (₹66.55 cr) to consolidated revenue in FY26, it represents a significant 31.77% (₹910.06 cr) of the group's net worth. The transaction value is highly material, representing nearly 94% of the company's current market capitalization of ₹453 cr. This move follows an in-principle approval from December 2025 and aims to restructure the company's international asset base.
- Sale consideration of up to USD 51 million (approx. ₹428 cr) against a market cap of ₹453 cr.
- Verasco FZE accounted for 31.77% of consolidated net worth (₹910.06 cr) as of March 31, 2026.
- Subsidiary revenue contribution was minimal at 2.14% (₹66.55 cr) of consolidated FY26 turnover.
- The transaction is not a related party transaction and was conducted at arm's length.
- Definitive agreements were scheduled for execution on August 12, 2026.
Veritas (India) has received final board approval to dispose of the material assets and liabilities of its wholly-owned subsidiary, Verasco FZE, to Inergy FZE for up to USD 51 million (~₹428 Cr). This transaction is highly significant as the consideration represents approximately 94.5% of the company's current market capitalization (₹453 Cr). While the subsidiary contributed only 2.14% to FY26 consolidated revenue, it represents 31.77% of the group's net worth (₹910.06 Cr). Separately, standalone Q1 FY27 results reported a net loss of ₹0.73 Cr on a total income of ₹0.90 Cr.
- Disposal of Verasco FZE assets for a consideration of up to USD 51 million (~₹428 Cr)
- Target subsidiary represents 31.77% of consolidated net worth, valued at ₹910.06 Cr
- Standalone Q1 FY27 total income reported at ₹90.59 Lakhs vs ₹115.45 Lakhs YoY
- Standalone net loss for the quarter ended June 30, 2026, stood at ₹73.18 Lakhs
- Transaction involves a non-related party (Inergy FZE) and is conducted at arm's length
Veritas (India) has finalized the disposal of assets from its material subsidiary, Verasco FZE, for up to USD 51 million (approx. ₹428 Cr). This subsidiary represents 31.77% of the company's consolidated net worth (₹910.06 Cr), making the transaction highly material compared to the company's ₹453 Cr market cap. Standalone Q1 FY27 results show a net loss of ₹73.18 lakhs on revenue of ₹90.59 lakhs. The sale proceeds are expected to support the company's ongoing capital-intensive projects like the Dighi Port complex.
- Sale consideration of up to USD 51 million for Verasco FZE assets and liabilities.
- Verasco FZE contributed 31.77% (₹910.06 Cr) to consolidated net worth in FY26.
- Standalone Q1 FY27 net loss widened to ₹73.18 lakhs from ₹58.72 lakhs YoY.
- Verasco FZE's revenue contribution was ₹66.55 Cr (2.14% of consolidated) in FY26.
- Consolidated segment assets for Distribution & Development stood at ₹3,95,853.27 lakhs.
Veritas (India) Ltd has scheduled a board meeting for August 12, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This follows a weak FY26 where net profit fell to ₹20 Cr from ₹114 Cr in FY25. The company is coming off a challenging March 2026 quarter which saw a net loss of ₹16 Cr on revenue of ₹532 Cr. Investors will be monitoring for a recovery in operating margins, which averaged just 2.8% over the trailing twelve months.
- Board meeting scheduled for August 12, 2026, to review Q1 FY27 performance.
- Trading window for designated persons remains closed until August 14, 2026.
- Company reported a net loss of ₹16 Cr in the immediate preceding quarter (March 2026).
- TTM revenue stands at ₹3,113 Cr against a market capitalization of ₹484 Cr.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 78.2% YoY to INR 3,855 Cr in FY24 from INR 2,163 Cr in FY23. In Q1 FY25, revenue reached INR 755 Cr, a 52.5% increase compared to INR 495 Cr in Q1 FY24. Growth is primarily driven by the trading business offsetting fluctuations in the tank terminal segment.
Geographic Revenue Split
Operations are split between India and the UAE (Sharjah). While specific % splits are not detailed, the Sharjah tank terminal revenue moderated in FY23 due to rental rate declines, while the trading business (global) drove the 1.5% consolidated growth in that period.
Profitability Margins
PAT margin improved to 4.8% in FY24 from 4.4% in FY23. Net profit for FY24 was INR 187 Cr, a 96.8% increase from INR 95 Cr in FY23. Q1 FY25 PAT was INR 48.1 Cr, up 91.6% YoY from INR 25.1 Cr.
EBITDA Margin
EBITDA margin was 6.6% in FY23, a decrease from 7.3% in FY22 due to lower rental rates in Sharjah. Management expects to maintain EBITDA margins at 6-7% over the medium term as rental rates firm up.
Capital Expenditure
The company is undertaking a major CapEx of INR 2,050 Cr through its subsidiary Veritas Polychem Pvt Ltd (VPPL) to set up manufacturing-storage-bottling facilities at Dighi Port, Maharashtra. Additionally, a 10 MMTPA LNG terminal is planned in Jafrabad, Gujarat.
Credit Rating & Borrowing
CRISIL reaffirmed ratings at BBB+/Stable and A2 in July 2023, but these were withdrawn in October 2024 at the company's request. Interest coverage stood at 6.60x in FY24, down from 8.52x in FY23 due to changing debt profiles.
Operational Drivers
Raw Materials
Bulk chemicals, rubber, metals, and petroleum derivatives. Specific % of total cost for each is not disclosed, but these form the core of the trading and distribution business.
Import Sources
Middle East (specifically Sharjah, UAE for terminal operations), India, and global markets for chemical and metal trading.
Key Suppliers
Not specifically named, but the company maintains strong relationships with key global suppliers in the petroleum and chemical sectors to support its distribution network.
Capacity Expansion
Current tank terminal capacity is 175,000 kilolitres at Hamriyah Free Zone, Sharjah. Planned expansion includes an integrated industrial complex at Dighi Port with PVC and PMB manufacturing plants, a gas storage terminal, and an LPG bottling plant.
Raw Material Costs
Not disclosed as a specific % of revenue, but operating performance is highly susceptible to volatility in commodity prices and foreign exchange rates.
Manufacturing Efficiency
Tank terminal utilization in Sharjah remained healthy despite rental rate fluctuations. Future efficiency will depend on the successful commissioning of the Dighi Port manufacturing plants.
Logistics & Distribution
The company leverages its established tank terminal in Sharjah and sound distribution network to manage global trade logistics for petroleum and chemical products.
Strategic Growth
Expected Growth Rate
8-10%
Growth Strategy
Growth will be achieved through the commissioning of the INR 2,050 Cr VPPL project at Dighi Port, which adds manufacturing (PVC, PMB) and LPG bottling to the portfolio. The company is also expanding into LNG infrastructure with a 10 MMTPA terminal in Gujarat and leveraging new trade agreements to access global customer segments.
Products & Services
Bulk chemicals, rubber, metals, petroleum derivatives, PVC, PMB, LPG, and tank terminal storage services.
Brand Portfolio
Veritas, Veritas Polychem, Verasco.
New Products/Services
PVC (Polyvinyl Chloride), PMB (Polymer Modified Bitumen), and LPG bottling services are expected to contribute significantly to revenue post-FY26.
Market Expansion
Targeting the Indian energy and petrochemical market through the Dighi Port complex and the Gujarat LNG terminal.
Market Share & Ranking
The company is ranked in the top 1000 listed entities on the BSE based on market capitalization as of March 31, 2024.
Strategic Alliances
The company is a subsidiary of Swan Energy Limited (SEL), which provides a track record in large energy infrastructure projects.
External Factors
Industry Trends
The industry is shifting toward sustainability and ESG compliance. Petroleum derivatives remain integral to India's energy mix due to growing industrial activity and transportation needs, supporting long-term demand for trading and storage.
Competitive Landscape
Intensified competition from rising private participation in petroleum trading is leading to margin compression, requiring optimized sourcing and logistics.
Competitive Moat
Moat consists of an established 175,000 KL tank terminal in a strategic location (Sharjah), extensive promoter experience, and a diversified trading portfolio. These are sustainable due to high entry barriers for large-scale infrastructure.
Macro Economic Sensitivity
Highly sensitive to global GDP growth and trade flows; a slowdown in global investment sentiments directly impacts the demand for traded chemicals and metals.
Consumer Behavior
Increasing demand for petrochemical feedstocks and cleaner fuel adoption is driving the shift toward integrated manufacturing and storage complexes.
Geopolitical Risks
Trade tensions and tariffs (e.g., U.S. actions on Indian exports) create logistical uncertainties and impact currency movements, affecting the petroleum trading business.
Regulatory & Governance
Industry Regulations
Operations are governed by SEBI Listing Regulations, the Companies Act 2013, and specific petroleum/chemical safety standards. The Risk Management Committee monitors compliance with cyber security and data privacy regulations.
Environmental Compliance
The company is adapting to evolving ESG norms and carbon emission pressures, which entail additional compliance costs and reporting obligations.
Taxation Policy Impact
Subject to Indian corporate tax laws and UAE regulations for Sharjah operations. Changes in tax laws are cited as a forward-looking risk factor.
Legal Contingencies
Senior management confirmed no material financial or commercial transactions with potential conflicts of interest for FY25. Specific values for pending court cases are not disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the financial closure and timely implementation of the VPPL project; any substantial time or cost overruns on the INR 2,050 Cr budget could adversely impact debt metrics.
Geographic Concentration Risk
Significant concentration in Sharjah, UAE for terminal revenue and India for the upcoming manufacturing expansion.
Third Party Dependencies
Dependent on Dighi Port infrastructure and global commodity suppliers for trading volumes.
Technology Obsolescence Risk
The company is investing in digitalization and IT infrastructure to strengthen internal controls and market responsiveness, mitigating the risk of manual operational failures.
Credit & Counterparty Risk
The company monitors debtor management as a key risk area to ensure receivables quality in its high-volume trading business.
