V-Guard Industries (532953) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 saw consolidated revenue rise 14.1% YoY to INR 1,755 crore, with PAT up 23% to INR 112 crore; full-year revenue reached INR 5,966 crore, up 7%, while PAT declined 1.7% to INR 308 crore due to a one-off labour code charge.

• All business segments delivered Q4 growth, led by Electronics and Electricals; Consumer Durables saw modest growth.

• Sunflame integration is progressing well, with early benefits in cost, performance, and customer satisfaction; merger with the holding company is in process.

• Board recommended a final dividend of 150% (INR 1.5 per share) for FY26, pending AGM approval.

• Cash generation and working capital management remained strong.

Financial highlights

• Q4 FY26 revenue: INR 1,755.27 crore (+14.1% YoY); PAT: INR 112.13 crore (+23% YoY); EBITDA: INR 170.72 crore (+19.3% YoY).

• FY26 consolidated revenue: INR 5,965.78 crore (+7% YoY); PAT: INR 308.33 crore (-1.7% YoY); EBITDA: INR 526.76 crore (+2.6% YoY).

• Q4 gross margin at 35.3%; EBITDA margin at 9.7%; full-year EBITDA margin at 8.8%.

• Net cash position improved to INR 231 crore as of March 2026, up from INR 64 crore last year.

• ROE and ROCE for FY26 at 13.0% and 16.1%, respectively.

Outlook and guidance

• Expecting a strong start to FY27, supported by a favorable summer and improved demand.

• Targeting 10-12% volume growth and 1-2% price growth, aiming for 15% overall growth.

• Confident of achieving double-digit EBITDA margins in the medium term, contingent on raw material price normalization.

• Cautious on margin guidance for FY27 due to ongoing cost inflation and geopolitical uncertainties.

• Continued monitoring of West Asia crisis for commodity inflation and supply disruptions.