V-Guard Industries Q2 FY27 results: net profit up 71.0% to ₹111.67 crore, revenue up 38.2%

How did V-Guard Industries perform in Q2 FY27?

V-Guard Industries reported consolidated revenue of ₹1,853 crore for Q2 FY27, up 38.2% from ₹1,341 crore in Q2 FY26. EBITDA rose 53.7% to ₹167.93 crore and margin expanded 1.0 percentage point to 9.1%. Net profit increased 71.0% to ₹111.67 crore, while basic EPS rose from ₹1.49 to ₹2.54.

Against Q1 FY27, revenue increased 2.3% to ₹1,853 crore, but EBITDA fell 12.1% to ₹167.93 crore and margin contracted 1.4 percentage points to 9.1%. Net profit declined 14.3% to ₹111.67 crore and basic EPS fell 14.5% to ₹2.54. On the standalone basis, revenue was ₹1767.73 crore and net profit was ₹94.63 crore.

What changed in V-Guard Industries' costs and profit?

Against Q2 FY26, total expenses rose 36.2% to ₹1,717 crore, led by cost of materials, which increased 55.3% by ₹260.75 crore to ₹732.63 crore. Employee cost rose 17.7% by ₹24.11 crore to ₹160.35 crore, while other expenses increased 19.1% by ₹49.42 crore to ₹307.74 crore. Finance costs rose 38.5% by ₹0.82 crore to ₹2.95 crore, and depreciation increased 7.2% by ₹1.93 crore to ₹28.89 crore.

Other income increased 178.0% by ₹8.74 crore to ₹13.65 crore, while PBT rose 76.0% by ₹64.66 crore to ₹149.74 crore. Tax was higher by ₹18.28 crore, or 92.4%, at ₹38.07 crore. There was no exceptional item. The company said gross margin moderated because of higher input costs and product mix, while pricing actions were being undertaken to mitigate those pressures.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 30.5% by ₹856.54 crore to ₹3,663.54 crore, while total income increased 30.9% by ₹871.71 crore to ₹3,688.87 crore. PBT rose 75.4% by ₹138.27 crore to ₹321.61 crore, and net profit increased 73.9% by ₹102.78 crore to ₹241.92 crore.

H1 FY27 EPS was ₹5.51, up from ₹3.17 in H1 FY26. The investor presentation reported H1 EBITDA excluding other income of ₹358.89 crore, up 54.1%, and an EBITDA margin of 9.8% against 8.3%. Gross margin was 35.6%, compared with 37.2% in H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,276.27 crore, against ₹3,713.72 crore at 31 March 2026, while total equity rose to ₹2,563.08 crore from ₹2,373.05 crore. Borrowings were ₹8.01 crore against ₹8.84 crore, and cash was ₹90.86 crore against ₹46.92 crore. Inventories increased to ₹1,304.75 crore from ₹1,023.93 crore, while trade receivables fell to ₹388.87 crore from ₹532.85 crore.

H1 FY27 operating cash flow was ₹458.35 crore, compared with ₹195.08 crore in H1 FY26. Investing cash flow was negative ₹333.1 crore against negative ₹119.05 crore, financing cash flow was negative ₹81.31 crore against negative ₹83.04 crore, and capital expenditure was ₹94.69 crore against ₹84.99 crore. The investor presentation also reported net cash of ₹530.44 crore on 30 September 2026.

How has V-Guard Industries done over the last 8 quarters?

Revenue has risen year on year in each of the last five quarters. It reached ₹1,852.89 crore in Q2 FY27, above the ₹1,810.65 crore recorded in Q1 FY27, but remained below the ₹1,755.27 crore of Q4 FY26 only in the sense that it was higher than that level. The recent quarterly sequence therefore shows continued revenue growth, with the latest quarter setting a new high.

Profit after tax reached ₹130.25 crore in Q1 FY27 before falling to ₹111.67 crore in Q2 FY27; the earlier low was ₹57.06 crore in Q3 FY26. EBITDA margin peaked at 10.5% in Q1 FY27 and eased to 9.1% in Q2 FY27, versus a recent low of 8.1% in Q2 FY26. Profit has risen year on year in each of the last three quarters.

Which businesses drove the quarter?

Electronics reported Q2 FY27 revenue of ₹510.24 crore, up 59.9% from ₹319.07 crore, and EBIT of ₹81.43 crore against ₹54.86 crore. Its EBIT margin was 16.0%. The company said growth was supported by Solar Products and Digital Inverter and Battery.

Electricals reported revenue of ₹794.25 crore, up 41.2% from ₹562.62 crore, and EBIT of ₹84.24 crore against ₹65.01 crore, with an EBIT margin of 10.6%. Consumer Durables revenue rose 20.0% to ₹475.22 crore from ₹396.09 crore, while EBIT increased to ₹22.4 crore from ₹6.91 crore; its EBIT margin was 4.7%. Sunflame revenue rose 20.5% to ₹76.08 crore, with EBIT of ₹3.57 crore against ₹4.13 crore.

What else did the company announce?

On 29 October 2026, the board approved the un-audited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026. It also appointed Kurian Puthenpurayil John as an additional non-executive independent director and recommended his appointment for a first term of 5 consecutive years from 29 October 2026 to 28 October 2031, subject to shareholder approval.

The board allotted 1,63,183 equity shares with a face value of ₹1 each to thirty-six employees who exercised stock options under ESOS 2013. It also approved the postal ballot notice for the independent director’s appointment. The same-day filings did not report a dividend or a fund raise.

What did V-Guard Industries' management say?

Management said H2 FY27 volume growth is expected at mid-teens, below H1 FY27, while price increases are expected to support revenue momentum. It said a 3%-4% pricing gap remained after renewed input-cost inflation, with recovery dependent on commodity stability, and planned a further pricing round in Consumer Durables in Q3 FY27. FY27 capital expenditure is expected to be about INR150 crores.

Management said lighting has reached only 40-50% of its intended SKUs, with meaningful revenue expected from Q1 FY28 and a fuller launch targeted by April-May. It said Sunflame’s product refresh would continue over the next 6-12 months. Management identified input-cost inflation, geopolitical commodity movements, developing solar supply chains, the pricing-transmission gap, consumer-durable volumes and lighting’s limited rollout as risks. The chairman said, “We won't be giving any numbers for Solar. We will not be giving any, product-wise.”

How did V-Guard Industries shares react?

After the filing appeared, the stock was up 5.4% after five minutes, 11.5% after 15 minutes and 11.6% after 30 minutes. It closed 8.0% above its pre-results close on the reaction day, compared with a 0.1% decline for the Household Appliances industry median. By the next day’s close, the stock was up 4.9% from the pre-results close, while the industry median was down 2.4%; the excess move was 7.4 percentage points.

By the fifth session’s close, the stock was up 8.9% from the pre-results close, compared with a 1.4% gain for the industry median, an excess move of 7.5 percentage points. Earlier reaction-day moves were mixed: 2.4% on 29 July 2026, negative 4.4% on 12 May 2026, 1.8% on 28 January 2026 and negative 1.4% on 29 July 2025.

How did other Household Appliances companies do?

Twelve other Household Appliances companies had filed for the quarter as of 6 November 2026, with a median revenue growth of 15.1%. Of these, 10 peers grew slower than V-Guard Industries and 2 peers grew faster than V-Guard Industries. Seven peers reported higher profit, based on the 12 peers for which profit was compared.