Q1 2026 V Guard Industries Ltd Earnings Call Transcript
Key Points
- The electrical segment, which includes wires, pumps, switch gears, and model switches, registered a growth of 7.6%, indicating steady performance.
- The consumer durable segment, covering fans, water heaters, kitchen appliances, and air coolers, reported a revenue growth of 16.3% year-over-year.
- Non-South markets grew by 2.1% year-over-year, now contributing 52.3% of total revenues, showing geographical diversification.
- Gross margin improved by around 110 basis points from 35.5% in Q4 FY25 to 36.7% in Q1 FY26, indicating margin recovery.
- The company is entering the lighting segment, which is expected to leverage existing distribution networks and expand product offerings.
- Topline growth for Q1 FY26 was subdued due to a weak summer season and a high base from the previous year, with a marginal decline of 0.7% in net revenues.
- EBITDA excluding other income for Q1 declined by 20.7% year-over-year, with margins reducing by 210 basis points to 8.4%.
- Consolidated profit after tax for the quarter was INR74 crore, down from INR99 crore in the same period last year, due to flat revenues.
- The electronic segment saw only moderate revenue growth at 4.5% year-over-year, with demand for stabilizers subdued.
- The early onset of monsoon curtailed the summer season, causing a sharp drop in demand for cooling products, impacting growth.
Ladies and gentlemen, good day and welcome to V Guard Industries Limited Q1, FY26 earnings conference call hosted by Nirmal Bang Equities Private Limited.
(Operator Instructions) I now hand the conference over to Ms. Arshia Khosla from Nirmal Bang Institutional Equities. Thank you and over to you, ma'am.
Thank you Palak. I, Arshia Khosla, on behalf of Nirmal Bang Institutional Equities, welcome all of you for the first quarter FY26 earnings, earning calls for VAT Industries Limited. From the management today we have Mr. Mithun Chittilappilly, Managing Director; Mr. Ramachandran V, Director and Chief Operating Officer, and Mr. Sudarshan Kasturi, Senior VP and Chief Financial Officer. I would now request the management to give their opening remarks, post which we shall open the floor for Q&A. Thank you and over to you, sir.
Thank you, Arshia and the team at
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