V-Guard Industries (532953) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue reached INR 1,538 crore, up 14.5% YoY, marking the highest-ever quarterly revenue, with broad-based growth across all key segments.

• Full-year FY25 consolidated net revenue was INR 5,578 crore, up 14.8% from FY24, with PAT at INR 314 crore, up 21.8%.

• Board recommended a final dividend of 150% (INR 1.5/share) for FY25.

• Company is now debt-free after repaying Sunflame acquisition loan ahead of schedule.

• Sunflame segment faced headwinds, with revenue declining 24.2% YoY in Q4 FY25.

Financial highlights

• Q4 FY25 gross margin improved to 35.5% (up 100 bps YoY); EBITDA at INR 143 crore, up 11.9% YoY; EBITDA margin at 9.2%-9.3%.

• FY25 gross margin was 36.3% (up 250 bps); PAT margin at 5.6%.

• Cash flow from operations for FY25 was INR 476.96 crore, up from INR 392.74 crore in FY24.

• Net cash position as of March 31, 2025, was INR 63.83 crore, compared to net debt of INR 203.49 crore a year earlier.

• Working capital cycle remains efficient, with turnover at 70 days as of March 31, 2025.

Outlook and guidance

• Management expects only minor further gross margin improvements and a steady working capital cycle.

• FY26 guidance targets 14%-15% revenue growth and stable EBITDA margins, despite a muted Q1 due to weak summer in South India.

• Focus remains on growth across Electronics, Electricals, Consumer Durables, and Sunflame segments, with robust new product pipeline.

• Investment of INR 50 crore approved to expand battery plant capacity in Hyderabad.