V-Guard Industries (532953) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered strong performance with all business segments achieving double-digit growth, driven by favorable summer conditions, robust demand, and effective pricing actions despite geopolitical and input cost challenges.

• Consolidated net revenue rose 23.5% year-over-year to ₹1,810.65 crore, with South India leading regional growth at 36.7% and non-South markets growing 12%.

• Focus shifted to accelerating growth for the Sunflame business after successful integration, with a merger underway.

• Board approved unaudited standalone and consolidated financial results for Q1 FY27 and appointed Mr. Mithun K Chittilappilly as Chairperson effective September 27, 2026.

• Allotment of 23,912 equity shares under ESOS 2013 to six employees.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹1,810.65 crore, up 23.5% YoY; consolidated PAT rose 76.4% YoY to ₹130.25 crore.

• EBITDA grew 54.5% YoY to ₹190.96 crore, with margin improving to 10.5% from 8.4% last year.

• Gross margin held steady at 36.9% despite higher input costs.

• Net cash position surged to ₹669.58 crore as of June 30, 2026, with strong cash flow from operations at ₹474.12 crore.

• Basic EPS for Q1 FY27 was ₹2.97 (consolidated), up from ₹1.69 in Q1 FY26.

Outlook and guidance

• Management expects growth momentum to continue, with FY27 revenue growth likely to exceed the long-term 15% target due to price hikes and volume growth.

• EBITDA margin guidance remains at 9%-10% for the year.

• Board and management continue to focus on pan-India expansion and product portfolio diversification.

• Long-term growth aspiration is 15% CAGR, with volume growth expected to normalize at 10%-12% and price growth at 2%-3% in a stable environment.

• Merger of Sunflame Enterprises Private Limited with the holding company is underway to leverage synergies.