Vaibhav Global (VAIBHAVGBL) Q4 24/25 earnings summary

Executive summary

• Revenue for Q4 FY25 was INR 850 crores, up 7.7% YoY; full-year revenue reached INR 3,380 crores, up 11.1% YoY.

• Gross margin for Q4 was 62.1%, with a full-year margin of 63.1%, maintaining the target range above 62%.

• Digital business contributed 41% of sales, with a five-year CAGR of 15%-16%; target is 50% digital sales by FY2027.

• Unique customer base grew 21% YoY to 710,000; new customer acquisitions in Q4 were 410,000, with a 43%-44% retention rate.

• Board recommended a final dividend of INR 1.5 per share; total FY25 dividend payout is 64-65% of earnings.

• Audited consolidated and standalone financial results for FY25 were approved, with unmodified audit opinions issued.

Financial highlights

• EBITDA margin for Q4 was 8.3%, slightly down due to digital investments and UK challenges; full-year EBITDA margin was 9.4%-13.1%.

• Profit after tax for Q4 was INR 34 crores, up 62% YoY; full-year PAT was INR 153 crores, up 21% YoY.

• Free cash flow stood at INR 127 crores; operating cash flow at INR 162 crores; net cash position at INR 170 crores.

• Basic EPS (consolidated) for FY25 was Rs. 9.25, up from Rs. 7.74 in FY24.

• Consolidated revenue from operations for FY25 was Rs. 337,957.68 lacs, up from Rs. 304,096.46 lacs in FY24.

Outlook and guidance

• FY26 revenue growth expected in the range of 8%-12% with operating leverage.

• Mid-teens revenue growth projected for subsequent years.

• Gross margin guidance for FY26 is 62%-63%.

• Germany expected to be EBITDA positive in FY26; Ideal World to achieve 20% growth and 8% EBITDA margin.

• Management does not expect recent US tariff measures to materially impact financials, but continues to monitor global trade policy developments.