India · Delayed Price · Currency is INR V-Guard Industries Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 delivered strong revenue and profit growth, led by Electronics and Electricals, with gross margin stable at 35.3%. Inflation and supply shocks persist, but proactive price hikes and Sunflame integration support resilience. FY27 targets double-digit growth and margin improvement.
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Q3 FY 2026 saw 10.6% revenue growth, led by a 26% rise in the electrical segment, while gross margin contracted 100 bps due to input cost pressures. EBITDA margin improved to 8.8%, and underlying PAT rose 22% year-over-year, despite a one-time employee benefit charge. Management expects strong summer demand and double-digit EBITDA margins if commodity inflation stabilizes.
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Q2 FY2026 saw modest revenue growth of 3.6% YoY, with gross margin rising to 37.6% and PAT up 3%. Electronics and electricals grew moderately, while consumer durables lagged due to weather. Management lowered growth guidance for FY2026, citing challenging demand.
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Q1 FY26 saw flat revenues and margin pressure due to a weak summer, with consumer durables declining sharply while electricals and electronics showed resilience. Gross margin improved sequentially, and the company expects 11%-13% revenue growth and 8.5%-9.5% margins for FY26.
Fiscal Year 2025
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Q4 FY25 saw record revenue and double-digit growth across all segments, with gross margin and PAT both improving YoY. Sunflame integration and battery capacity expansion are underway, while management maintains FY26 guidance of 14%-15% revenue growth and stable margins despite a weak summer in South India.
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Q3 FY25 saw 8.9% YOY revenue growth, led by electronics and non-South markets, with gross margin up 250 bps to 36.2%. EBITDA margin declined to 8.2% due to higher A&P and employee costs. New manufacturing investments and premiumization are expected to drive future margin gains.
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Revenue grew 14.1% YOY to INR 1,294 crore, led by strong electronics and electricals growth, while consumer durables and kitchen appliances faced headwinds. Gross margin improved to 35.8%, and EBITDA margin rose to 8.5%. Management expects continued momentum, with Sunflame and kitchen businesses remaining flat due to industry challenges.
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Q1 FY25 saw 21.6% YOY revenue growth, led by Electronics and Consumer Durables, with gross margin up 380 bps. Non-South markets now contribute over half of revenues. Margin gains are expected to continue, though kitchen appliances remain under demand stress.