V-Guard Industries rallies after Q2 PAT soars 71% YoY

V-Guard Industries jumped 7.90% to Rs 284.85 after the company reported a 71.04% year-on-year increase in consolidated net profit to Rs 111.67 crore in Q2 FY27 from Rs 65.29 crore in Q2 FY26.

However, net profit declined 14.26% quarter on quarter from Rs 130.25 crore in Q1 FY27.

Revenue from operations increased 38.18% year on year to Rs 1,852.89 crore from Rs 1,340.92 crore. Revenue rose 2.33% sequentially from Rs 1,810.65 crore in Q1 FY27.

Gross margin declined to 34.3% from 37.6% a year earlier. EBITDA excluding other income increased 53.7% year on year to Rs 167.93 crore from Rs 109.26 crore. Its margin improved to 9.1% from 8.1%. EBITDA including other income rose 59% to Rs 181.58 crore from Rs 114.17 crore, while the margin increased to 9.8% from 8.5%.

Profit before tax stood at Rs 149.74 crore in Q2 FY27, down 12.88% vs previous quarter and up 76% vs year-ago quarter.

Total expenditure increased 36.17% year on year to Rs 1,713.85 crore from Rs 1,258.62 crore. Raw material consumed rose 55.26% to Rs 732.63 crore, while employee expenses increased 17.70% to Rs 160.35 crore. Interest costs rose 38.50% to Rs 2.95 crore, and depreciation increased 7.16% to Rs 28.89 crore.

South India revenue grew 51% year on year to Rs 1,092.42 crore, contributing 59% of total revenue, compared with 54% a year earlier. Non-South revenue rose 23.2% YoY to Rs 760.47 crore.

Among segments, Electronics revenue increased 59.9% year on year to Rs 510.24 crore, while Electricals revenue rose 41.2% to Rs 794.25 crore. Consumer Durables revenue grew 20% to Rs 475.22 crore, and Sunflame revenue increased 20.5% to Rs 76.08 crore.

Chairman and managing director Mithun K. Chittilappilly said the company delivered consistent growth across all segments, supported by price increases, healthy volume growth and supportive market conditions. He said the West Asia crisis continued to pose margin challenges, which the company was addressing through various measures. V-Guard is monitoring geopolitical developments and plans to take steps to protect supplies and margins. The company expects to deliver healthy growth in the coming quarters.

V-Guard Industries manufactures products in the categories of electronics, electricals and consumer durables.

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