Vinati Organics has been upgraded to an "ACCUMULATE" rating by KR Choksey, with a target price of INR 2,002.

The company"s revenue for the latest quarter increased by 19.5% year-on-year to INR 5,533 million, while profit after tax (PAT) exceeded expectations by 4.9% and surged by 44.1% to INR 1,044 million.

This growth was driven by higher other income and lower tax rates, resulting in a PAT margin expansion to 18.9%.

Vinati Organics reported an EBITDA of INR 1,337 million, up 27.7% year-on-year, with an EBITDA margin of 24.2%.

The company expects strong growth supported by the expansion of ATBS capacity by Q4FY25E and improved capacity utilization in the Antioxidants segment.

The planned ramp-up of the Veeral Organics plant in the second half of FY25E is also anticipated to contribute positively to performance, indicating a favorable outlook as demand recovery stabilizes.