V-Guard Industries (532953) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹1,852.89 crore, up 38.2% YoY; H1 revenue was ₹3,663.54 crore, up 30.5%.

• Q2 net profit rose 71.0% to ₹111.67 crore; H1 net profit increased 73.9% to ₹241.92 crore, with growth across all segments.

Financial highlights

• Q2 EBITDA excluding other income was ₹167.93 crore, up 53.7% YoY; EBITDA margin expanded to 9.1% from 8.1%.

• Q2 gross margin declined to 34.3% from 37.6% YoY amid input-cost inflation and product mix; pricing actions are underway.

• H1 EBITDA excluding other income rose 54.1% to ₹358.89 crore; consolidated profit before tax was ₹321.61 crore versus ₹183.34 crore.

• Standalone H1 revenue was ₹3,504.60 crore and net profit was ₹202.42 crore, versus ₹2,678.70 crore and ₹121.68 crore, respectively.

Outlook and guidance

• H2 volume growth is expected to moderate from H1 but remain healthy at a mid-teens level; normalized channel inventory and current demand support growth momentum.

• Pricing actions aim to address a 3%–4% cost-recovery gap; commodity movements and geopolitical conditions may affect the pace of recovery.

• Management expects some margin recovery as pricing takes effect, supported by cost optimisation and higher in-house manufacturing; H1 EBITDA margin was indicated at 9.6%–10%.