V-Guard Industries (532953) investor relations material

Executive summary

• Q3 FY26 consolidated net revenue rose 10.6% year-over-year to INR 1,404 crore, led by double-digit growth in the electrical segment, supported by higher copper prices and volume expansion.

• Gross margin was 35.7%-35.9%, down year-over-year, while EBITDA margin improved to 8.8% from 8.2%.

• PAT declined 5.2% year-over-year to INR 57 crore due to a one-time employee benefit charge of INR 22.11 crore from new labour codes; underlying PAT grew 22%.

• South markets grew 20.1% year-over-year, non-South markets grew 3.3% and contributed 44.6% of total revenues.

• Board approved key director appointments and in-principle merger of Sunflame Enterprises Private Limited with the holding company.

Financial highlights

• Q3 FY26 EBITDA increased 18.3% year-over-year to INR 123 crore; EBITDA margin at 8.8%.

• Gross margin contracted by 70-100 bps year-over-year to 35.7%-35.9%.

• 9M FY26 net revenue up 4.2% year-over-year to INR 4,210.51 crore; 9M PAT down 11.9% to INR 196.20 crore.

• Net cash position as of Dec 31, 2025, was INR 293.68 crore, up from INR 27.72 crore a year earlier.

• Working capital turnover improved to 53 days from 68 days year-over-year.

Outlook and guidance

• Management expects strong results in the upcoming summer season, with some input cost increases anticipated, requiring pricing actions.

• Double-digit growth anticipated in electronics and ECD segments due to low base and new categories.

• Double-digit EBITDA margin targeted by FY 2027, subject to normalization of raw material inflation.

• Board approved in-principle merger of Sunflame Enterprises Private Limited to leverage synergies.