Vaibhav Global (VAIBHAVGBL) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly sales of INR 977 crores (Rs. 97,734.26 lacs), up 10% year-over-year, with strong growth across US, UK, and Germany operations and robust demand for high-end jewelry and lab-grown diamonds.

• Germany operations reached EBITDA break-even; Ideal World turned profitable at PBT level in Q3; lab-grown diamonds contributed 8.9% of sales, up from 0.2% last year.

• Unique customer base grew 30% YOY to 698,000, with 43% retention and average annual purchases per customer at 22 pieces.

• Board declared an interim dividend of INR 1.50 per share (39% payout for the quarter), with total dividends of Rs. 4.50 per share for the nine-month period.

• Sustainability initiatives included generating 1.1 million kWh solar energy and serving 97 million meals to schoolchildren.

Financial highlights

• Quarterly revenue: INR 977 crores (10% YOY growth); gross margin: 61.3% (down 110 bps YOY); EBITDA margin: 11.5% (up 40 bps YOY); PAT: INR 64 crores, up 36% YOY.

• TV revenue: INR 547 crores (6% YOY growth); digital revenue: INR 380 crores (12% YOY growth), now 40% of B2C revenue.

• Free cash flow: INR 58 crores for the quarter, INR 268 crores for 9M FY25; net cash position: INR 106 crores.

• EPS for Q3 FY25 at Rs. 3.9, up from Rs. 2.9 in Q3 FY24; basic EPS for the quarter at Rs. 3.85.

• US revenue grew 3.6% YOY, UK up 6.5%, Germany up 30.7% YOY in local currencies.

Outlook and guidance

• FY25 revenue growth guidance at 12% amid muted consumer sentiment in UK/Europe; early teen revenue growth expected from FY26.

• Gross margin expected to remain above 60% in upcoming quarters and years.

• Management does not expect any liability from ongoing Income Tax Department proceedings.