India · Delayed Price · Currency is INR V-Guard Industries Earnings Call Transcripts
Fiscal Year 2026
-
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.
-
Q2 FY2026 saw modest 3.6% revenue growth, with gross margin up to 37.6% and PAT rising 3% YoY. Electronics and electricals grew modestly, while consumer durables lagged due to weather. Sunflame integration and backward integration in batteries are expected to drive future margin gains.
-
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
-
Q4 FY25 saw record revenue and double-digit growth across all segments, with gross margin and profitability improving YoY. Sunflame integration and CSD channel stress remain challenges, but management maintains FY26 guidance of 14%-15% revenue growth and stable margins.
-
Q3 FY25 saw 8.9% 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 operating leverage are expected to drive future margin gains.
-
Q2 FY25 saw 14.1% YOY revenue growth, margin expansion, and strong cash flows, led by electronics and electricals. Consumer durables and kitchen appliances faced headwinds, but integration and cost initiatives supported profitability. Growth momentum is expected to continue.
-
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.