V-Guard Industries announced its Q3 FY26 results, showcasing a 10.6% YoY increase in consolidated net revenue, reaching INR 1,404 crore. The Electricals segment drove growth with a 26% YoY increase. EBITDA (excluding other income) rose by 18.3% to INR 123 crore, with margins expanding to 8.8%. The company anticipates a strong summer season and aims to maintain resilient margins through calibrated pricing actions.
Financial Performance
V-Guard Industries reported a 10.6% year-over-year (YoY) increase in consolidated net revenue, reaching INR 1,404 crore for Q3 FY26. The Electricals segment emerged as a key driver, demonstrating robust YoY revenue growth of 26%. However, consolidated PAT (Profit After Tax) stood at INR 57 crore, representing a YoY decline of 5.2% due to an incremental charge of INR 22.11 crore, towards gratuity and leave encashment provision. Excluding this charge, the consolidated PAT improved by 22% YoY.
Segmental Performance
The Electricals segment, consisting of Wires, Pumps, Switchgears, and Modular Switches, reported a robust YoY revenue growth of 26%. The Electronics segment, which includes Stabilizers, UPS systems, and Inverters, reported largely flat revenues of INR 286 crore. The Consumer Durables segment, including Fans, Water Heaters, Kitchen Appliances, and Air Coolers, saw revenue growth of 4.6% YoY. Sunflame reported a YoY revenue decline of 9.9%.
Margins and Outlook
Gross margin for the quarter stood at 35.7%, compared to 36.7% in Q3 FY25, reflecting a contraction of 100 basis points. EBITDA (excluding other income) for Q3 FY26 stood at INR 123 crore, representing a YoY increase of 18.3%. EBITDA margin improved to 8.8% from 8.2% in Q3 FY25. The company expects some input cost increases and plans to take calibrated pricing actions.
Strategic Initiatives and Capex
The operational integration of Sunflame has been completed, with sales integration underway. The company is undertaking capex for a fan manufacturing facility and a second battery facility, both in Hyderabad, to increase in-house manufacturing. The company anticipates strong results in the upcoming summer season.
Gegadyne Battery Start-up
Gegadyne is now in the commercialization phase, supplying local players with small quantities. They will begin supplying V-Guard in small quantities in the next 3 to 4 months. V-Guard supports Gegadyne in technology development to build future supply capabilities for energy storage solutions.
Competition and Market Share
V-Guard has maintained its market share in the Southern market despite increasing competition. The trade structure is more organized with developed organized retail and e-commerce sectors which help the company in reaching larger customer base.
Future Outlook
The company anticipates double-digit EBITDA margins, contingent on raw material inflationary environment normalizing by FY27-end. Current focus is to improve sales of Kitchen and Modular Switches. Target is to achieve double-digit EBITDA margins in the coming years through better summer category contribution and operating leverage.
Source: BSE
