Vaibhav Global Limited reported a strong start to FY27, with Q1 consolidated revenue reaching INR917 crore, a 12.7% increase year-over-year. EBITDA surged by 37% to INR102 crore, with margins improving to 11%. Profit after tax grew by 50% to INR56 crore. The company highlighted steady performance across markets despite a cautious consumer environment, driven by digital initiatives and value-oriented offerings.
Vaibhav Global Reports Robust Q1 FY27 Performance
Vaibhav Global Limited commenced FY ’27 on a strong note, building on the momentum from FY ’26. For the first quarter ending June 30, 2026, the company announced consolidated revenue of INR917 crore, marking a significant 12.7% growth compared to the same period last year. The company’s profitability also saw substantial improvement, with EBITDA rising by 37% year-over-year to INR102 crore, consequently expanding the EBITDA margin to 11% from 9.2% in Q1 FY ’26. Profit after tax (PAT) grew by an impressive 50% year-over-year to INR56 crore, resulting in a PAT margin of 6%.
Key Business and Market Highlights
The reported growth was aided by favorable foreign exchange movements and a U.S. tariff refund. On a constant currency basis, revenue was largely flat, primarily due to Middle East conflict-related disruptions and a cautious consumer spending environment in key markets. The company emphasized that these are near-term factors and do not alter the long-term growth potential.
In the U.S., consumer confidence remained weak, with a focus on essentials over discretionary spending. Despite this, the U.S. business delivered a steady performance, reflecting the strength of Vaibhav Global’s value-oriented omnichannel proposition. The U.K. market saw challenging conditions, but proprietary brands like Rachel Galley and Ideal World performed strongly, helping to offset broader softness and maintaining a flat overall performance.
Germany demonstrated early signs of stabilization with improving income expectations, and the German business achieved a good growth of 6% in local currency with improved margins. The company confirmed that Germany is on track to contribute positively to group profitability from FY ’27.
Strategic Priorities and Digital Transformation
Vaibhav Global reiterated its focus on strategic priorities, with its in-house brands now contributing around 57% of B2C sales. Digital sales accounted for 45% of B2C revenue in the quarter, and the company is on track to achieve its target of a 50% digital mix by the end of FY ’27. Lab-grown diamonds continue to show strong momentum, representing about 13% of retail revenue.
A significant structural step was the successful migration of all key e-commerce platforms from Salesforce to the Shopify Enterprise e-com platform. This move positions the company on a unified cloud-based and scalable technology backbone, enabling faster feature deployment, a single customer view across channels, seamless integration with marketing technologies, and improved site performance.
The company has also implemented AI tools for product scheduling, content generation, personalized marketing, and demand forecasting, aiming to evolve into an integrated digital-first AI-led omnichannel retailer. Sustainability remains a core focus, with the Your Purchase Feeds program having served over 115 million meals to school children.
Financial Outlook and Capital Allocation
The Board has recommended a first interim dividend of INR1.5 per equity share. The company reiterates its FY ’27 guidance of 9% to 11% revenue growth with EBITDA margin expansion of 50 to 100 basis points over FY ’26. Looking further ahead, Vaibhav Global is confident in achieving 12% to 15% growth in the mid- to long-term by scaling its digital platforms.
Nitin Panwad, Group CFO, detailed the financial performance, noting that in local currency terms, Q1 FY ’27 growth was 4% in the U.S., flat in the U.K., and 6% in Germany. Overall B2C growth was 2% in U.S. dollar terms, largely flat excluding tariff refunds. The company’s net cash position stood at INR287 crore as of June 30, 2026, providing financial flexibility. ROCE was reported at 24% and ROE at 18%.
Source: BSE
