VIP Industries announced a robust 15% year-on-year revenue growth for the second quarter of FY27, reaching ₹468 crore. This performance was driven by successful new product launches and a strategic focus on premiumization. The company also saw an improvement in its EBITDA loss, narrowing to ₹27 crore from ₹96 crore in the prior year’s quarter, signaling progress towards profitability.
VIP Industries Achieves Strong Q2 Growth
VIP Industries has reported a significant financial uptick for the second quarter of FY27 (ended September 30, 2026), with consolidated income from operations growing 15% year-on-year to ₹468 crore. This acceleration in growth, from 3% in Q1 FY27, is attributed to successful new and innovative product launches across its brands: VIP, Skybags, and Aristocrat.
Improved Financial Metrics
The company’s EBITDA loss has narrowed considerably, decreasing to ₹27 crore (-6%) in Q2 FY27, a marked improvement from ₹96 crore (-24%) in the corresponding quarter of the previous year (Q2 FY26). This positive trend underscores VIP Industries’ strategic efforts towards achieving break-even and establishing a clear path to profitability.
Strategic Initiatives Driving Performance
Revenue growth was significantly boosted by a substantial contribution from over 50+ new product ranges launched in the first half of FY27, which accounted for approximately 45% of Hard luggage and Backpack sales. The company’s strategy includes a focus on premiumization, evidenced by an improvement in sequential Gross Margin (GM) from 39% in Q1 FY27 to 44% in Q2 FY27, despite raw material inflation. The introduction of feature-rich ranges and expansion of the VIP and Skybags footprint, alongside the soft launch of its new premium brand, Savoy Paris, are key components of this strategy.
Leadership Outlook
Atul Jain, Managing Director of VIP Industries, stated, “Our mission is to make every journey better for Indians, and product is at the heart of it. The 15% revenue growth this quarter has been led by new and innovative products… We are also moving our portfolio up the price ladder – with premium launches across our brands. With growth back on track, our focus is firmly on sustaining double-digit growth and charting a clear path to break-even and profitability.”
Key Financial Highlights for Q2 FY27
- Revenue Growth: 15% YoY, reaching ₹468 crore.
- EBITDA Loss: Narrowed to ₹27 crore (-6%).
- Sequential GM Improvement: From 39% in Q1’27 to 44% in Q2’27.
- New Product Contribution: ~45% of Hard luggage and Backpack sales from over 50+ new ranges launched in H1 FY27.
Source: BSE
