V-Guard Industries (532953) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated net revenue rose 10.6% year-over-year to INR 1,404 crore, led by double-digit growth in the electrical segment, supported by higher copper prices and volume growth.

• Electrical segment revenue grew 26% year-over-year, while electronics segment revenue was flat at INR 286 crore, and consumer durables grew 4.6% year-over-year.

• Sunflame saw a 9.9% year-over-year revenue decline, but operational integration is complete and sales integration is underway.

• South markets grew 20.1% year-over-year, while non-South markets grew 3.3% and contributed 44.6% of total revenues.

• Board approved unaudited financial results, key director appointments, and in-principle merger of Sunflame Enterprises Private Limited.

Financial highlights

• Gross margin for Q3 FY26 was 35.7%-35.9%, down 70-100 bps year-over-year; EBITDA (excluding other income) rose 18.3% year-over-year to INR 123 crore, with margin improving to 8.8% from 8.2%.

• An exceptional item of INR 22.11 crore was recognized for employee benefit obligations due to new labor codes, impacting PAT.

• Consolidated PAT was INR 57 crore, down 5.2% year-over-year due to the one-time charge; underlying PAT grew 22% year-over-year.

• Net cash position as of Dec 31, 2025, was INR 293.68 crore, up from INR 27.72 crore a year earlier.

• 9M FY26 net revenue was INR 4,210.51 crore, up 4.2% year-over-year; 9M PAT down 11.9% year-over-year.

Outlook and guidance

• Management expects strong results in the upcoming summer season, with double-digit growth anticipated in electronics and ECD segments in FY27 due to a low base and new categories.

• Double-digit EBITDA margins are expected if growth returns and raw material inflation normalizes by FY27.

• Board approved in-principle merger of Sunflame Enterprises Private Limited to leverage synergies.