Vaibhav Global (VAIBHAVGBL) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 7% to INR 938.4 crore but declined 1% in constant currency; Shopify migration and U.K. consolidation disrupted sales and operating leverage.

• H1 FY27 revenue grew 9.7% to INR 1,855.4 crore; digital revenue rose 14.7%.

Financial highlights

• Q2 EBITDA was INR 76.2 crore, down 13.6%, with an 8.1% margin versus 10.0% in Q2 FY26; transition costs and sales deleverage weighed on profitability.

• Q2 gross margin expanded 196 bps to 65.5%; retail revenue rose 5.3% to INR 867.5 crore and B2B revenue grew 32.4% to INR 70.9 crore.

• Q2 net profit was INR 41.71 crore versus INR 47.55 crore in Q2 FY26; H1 net profit rose to INR 98.09 crore from INR 85.19 crore.

• H1 EBITDA was INR 178.3 crore at a 9.6% margin; H1 revenue included INR 765.2 crore digital sales, up 14.7%, and INR 984.1 crore TV sales, up 5.9%.

• Q2 total income was INR 946.57 crore and profit before tax INR 44.42 crore; H1 profit before tax was INR 115.30 crore.

Outlook and guidance

• FY27 revenue growth guidance was lowered to 7%-9% from 9%-11%; FY27 EBITDA margin is expected broadly in line with FY26, replacing prior guidance for 50-100 bps expansion.

• FY28 revenue growth of 9%-11% is expected; digital share target remains 50% of B2C revenue by Q4 FY27, versus 44% in FY26.

• FY30 revenue target is INR 5,000-5,500 crore, based mainly on existing U.S., U.K. and Germany brands; India launch is excluded, with a small e-commerce acquisition possible.

• In-house brands target 60%+ of B2C revenue by FY27; lifestyle products target 50% of revenue over the medium term, from 40% in H1 FY27.

• Priorities include restoring digital momentum, improving customer acquisition and operating leverage on Shopify; Germany profitability is a priority before entering new geographies.