Vaibhav Global (VAIBHAVGBL) Q1 24/25 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q1 FY25, reaching INR 756 crores, with 20% volume growth and unique customer base up 37% YoY to 636,000, and strong retention at 40% with 24 repeat purchases per annum.

• Gross margin improved to 66.1% from 61.2% YoY, driven by pricing, product mix, and sourcing.

• EBITDA margin declined to 8.7% from 10% due to higher digital marketing and airtime investments for customer acquisition and channel positioning.

• Board declared first interim dividend of INR 1.5 per share (90% payout) for FY25.

• Sustainability initiatives included commissioning a third rainwater harvesting tank and reaching 90 million meals donated under the midday meal program.

Financial highlights

• Q1 FY25 revenue grew 15% YoY to INR 756 crores, with gross margin at 66.1% and EBITDA margin at 8.7%; PAT was INR 27 crore.

• Digital revenue now forms 40% of total, with BudgetPay (EMI) contributing 38% of B2C revenue.

• Net cash positive balance stood at INR 158 crore.

• EPS for Q1 FY25 was INR 1.7.

• TV revenue: INR 440 crores (+12.2% YoY); Digital revenue: INR 289 crores (+22% YoY).

Outlook and guidance

• FY25 revenue growth guidance reiterated at 14%-17% with operating leverage and margin expansion of 200 bps at gross margin and over 100 bps at EBITDA level.

• Germany expected to achieve operating profitability by H2 FY25.

• Content and broadcasting expenses expected to reduce to 18% of revenue for FY25.

• Mid-teen revenue growth projected for future periods.

• Mindful Souls BV acquisition expected to create synergies and strengthen digital businesses.