Vaibhav Global Q2 FY27 results: net profit down 12.3% to ₹41.71 crore, revenue up 7.0%

How did Vaibhav Global perform in Q2 FY27?

Vaibhav Global reported consolidated revenue of ₹938.37 crore for Q2 FY27, up 7.0% from ₹877.32 crore in Q2 FY26 and 2.3% from ₹917.07 crore in Q1 FY27. Total income was ₹946.57 crore, while EBITDA was ₹68.05 crore, down 12.3% year on year and 29.6% sequentially. The EBITDA margin fell to 7.3% from 8.8% a year ago and 10.5% in the previous quarter.

Profit before tax was ₹44.42 crore, down 26.3% from ₹60.25 crore in Q2 FY26 and 37.3% from ₹70.87 crore in Q1 FY27. Profit after tax was ₹41.71 crore, down 12.3% year on year and 26.0% sequentially, with basic EPS of ₹2.49 compared with ₹2.85 and ₹3.37, respectively. The standalone results showed revenue of ₹177.42 crore and profit after tax of ₹74.32 crore.

What changed in Vaibhav Global's costs and profit?

Total expenses rose 9.0% from ₹827.60 crore in Q2 FY26 to ₹902.14 crore in Q2 FY27. Cost of materials consumed increased by ₹55.10 crore to ₹134.94 crore, employee cost rose by ₹9.43 crore to ₹160.68 crore, finance costs rose by ₹1.49 crore to ₹4.90 crore and depreciation increased by ₹2.47 crore to ₹26.92 crore. Other expenses increased by ₹62.46 crore to ₹408.84 crore. There was no exceptional item in either quarter.

Other income fell by ₹2.33 crore to ₹8.20 crore from ₹10.53 crore in Q2 FY26, while tax expense declined by ₹9.98 crore to ₹2.71 crore from ₹12.69 crore. The company’s investor presentation said higher digital marketing investment, elevated freight costs and operating deleverage offset gross-margin expansion and technology-led efficiencies. It also said Q2 FY27 included a foreign tax credit of Rs. 4.34 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹1,855.44 crore, up 9.7% from ₹1,691.05 crore in H1 FY26. Total income was ₹1,868.95 crore, up 9.0%, while profit before tax was ₹115.3 crore, up 8.7%. Profit after tax rose 15.1% to ₹98.09 crore from ₹85.19 crore, and basic EPS increased to ₹5.87 from ₹5.12.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,625.84 crore, compared with ₹2,547.25 crore at 31 March 2026. Total equity was ₹1,712.79 crore against ₹1,647.93 crore, while borrowings rose to ₹129.63 crore from ₹112.23 crore and cash fell to ₹242.67 crore from ₹333.54 crore. Inventories increased to ₹933.85 crore from ₹811.25 crore; trade receivables were ₹338.73 crore against ₹339.65 crore and trade payables were ₹272.20 crore against ₹268.23 crore.

H1 FY27 operating cash flow was ₹23.57 crore, compared with ₹68.05 crore in H1 FY26. Investing cash flow was negative ₹54.01 crore against negative ₹2.64 crore, financing cash flow was negative ₹57.14 crore against negative ₹64.26 crore, and capital expenditure was ₹63.23 crore compared with ₹10.75 crore.

How has Vaibhav Global done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. Over the reported series, revenue peaked at ₹1,066.03 crore in Q3 FY26 and was lowest at ₹813.74 crore in Q1 FY26. Q2 FY27 revenue of ₹938.37 crore was higher than Q1 FY27’s ₹917.07 crore. Profit after tax peaked at ₹91.14 crore in Q4 FY26 and was lowest at ₹34.08 crore in Q4 FY25.

The EBITDA margin peaked at 12.7% in Q3 FY26 and fell to 7.3% in Q2 FY27, equal to the level recorded in Q4 FY25. After 10.5% in Q1 FY27, the latest margin indicates a sequential decline. The eight-quarter revenue-growth streak continued into Q2 FY27.

Which businesses drove the quarter?

Revenue from the United States of America was ₹558.47 crore, up 9.0% from ₹512.13 crore in Q2 FY26, with EBIT of ₹28.28 crore compared with ₹26.47 crore and an EBIT margin of 5.1%. The United Kingdom reported revenue of ₹257.81 crore, up 2.4% from ₹251.77 crore, while EBIT fell to ₹44.42 crore from ₹62.86 crore and the EBIT margin was 17.2%.

India reported revenue of ₹183.32 crore, up 25.7% from ₹145.82 crore, with EBIT of ₹73.94 crore against ₹73.3 crore and an EBIT margin of 40.3%. Europe excluding the United Kingdom reported revenue of ₹111.86 crore, up 18.3%, and a loss of ₹5.38 crore in EBIT compared with a loss of ₹5.09 crore. Rest-of-world revenue was ₹148.19 crore, up 31.9%, with EBIT of ₹60.22 crore against ₹61.95 crore and an EBIT margin of 40.6%. Intersegment eliminations were negative ₹321.28 crore for revenue and negative ₹152.16 crore for EBIT.

What else did the company announce?

The board approved the unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2026. It declared a second interim dividend of Rs. 1.50 per equity share for FY 2026-27, fixed 4 November 2026 as the record date and said payment would be made within 30 days of declaration.

The board also approved a grant of 8,018 restricted stock units convertible into 8,018 equity shares under the VGL RSU Plan – 2019. The exercise price was Rs. 2 per unit, with 20% vesting after the first year, 30% after the second year and 50% after the third year; each vested unit must be exercised within three months.

What did Vaibhav Global's management say?

Management lowered FY27 revenue-growth guidance to 7%-9% from 9%-11% and said FY27 EBITDA margin is expected to be broadly in line with FY26. The company said the reduction reflected Shopify disruption, UK consolidation, a weak UK consumer and possible US midterm-election distraction. It retained a target of 9%-11% revenue growth in FY28 and FY30 revenue of INR5,000-5,500 crore.

Managing Director Sunil Agrawal said the Shopify migration was a transition and that temporary integration issues affected digital conversion and revenue. Management estimated the quarterly revenue impact at approximately USD2.8 million, or around 2.8 percentage points of growth. The company also said digital revenue was targeted at 50% of B2C revenue by Q4 FY27, with customer-acquisition payback within six months and a long-term three-month aim.

Management said the UK warehouse and Shopify transitions were completed, while UK inventory was about INR100 crore above the prior year. It expected inventory to normalise to 200-220 days by Q3-Q4 FY27 and aimed to maintain gross margin at approximately 64%-65%. The company identified a weak UK consumer, cost-of-living pressure, potential US midterm-election distraction and the need to recover customer-acquisition costs within six months as risks.

How did Vaibhav Global shares react?

After the filing appeared, the stock fell 6.9% within five minutes, 7.4% within 15 minutes and 7.6% within 30 minutes. From the previous close of ₹188.00, it closed the reaction day at ₹176.00, down 15.4%. By the next day's close, the cumulative decline from that pre-results close was 16.0%. The industry median rose 0.7% on the reaction day and fell 2.6% by the next day's close, leaving Vaibhav Global 16.1 percentage points behind on reaction day and 13.3 percentage points behind on the cumulative next-day move.

Earlier results-day reactions were mixed: the stock fell 7.1% on 4 August 2026 and 3.9% on 22 May 2026, rose 1.7% on 28 January 2026 and 5.5% on 30 October 2025, and recorded smaller moves on the other listed result dates. The latest reaction followed two consecutive declines after moves of 1.7% and 5.5% earlier in the series.

How did other Gems Jewellery And Watches companies do?

Eleven other Gems Jewellery And Watches companies that had filed for the quarter were compared with Vaibhav Global as of 4 November 2026. Their median revenue growth was 45.1%, compared with Vaibhav Global’s 7.0%. One peer grew more slowly than Vaibhav Global, while 10 peers grew faster. Nine of the 11 peers reported higher profit.