V-Guard Industries (532953) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 delivered record consolidated revenue of ₹1,538 crore, up 14.5% YoY, with strong growth in both revenue and profitability.

• Full-year FY25 consolidated net revenue was ₹5,578 crore, up 14.8% from FY24, with PAT at ₹314 crore, up 21.8%.

• Board recommended a final dividend of 150% (₹1.50 per share) for FY25.

• Company returned to a debt-free status after repaying the Sunflame acquisition loan.

• All key segments contributed to double-digit growth, though Sunflame faced headwinds and CSD channel slowdown.

Financial highlights

• Q4 FY25 gross margin expanded by 100 bps to 35.5%; EBITDA grew 11.9% to ₹143.05 crore; EBITDA margin at 9.2%-9.3%.

• FY25 gross margin was 36.3% (up 250 bps); EBITDA margin at 9.2%; PAT margin at 5.6%.

• Cash flow from operations for FY25 was ₹476.96 crore, up from ₹392.74 crore in FY24.

• Net cash position as of March 31, 2025, was ₹63.83 crore, compared to net debt of ₹203.49 crore a year earlier.

• Working capital cycle remains efficient, with turnover at 70 days as of March 31, 2025.

Outlook and guidance

• Management expects only incremental gross margin improvements going forward, as recovery is largely complete.

• FY26 guidance targets 14%-15% top-line growth and stable EBITDA margins, despite a muted Q1 due to weak summer in South India.

• Management anticipates sustained demand for cooling products and a robust pipeline of new product launches.

• Confident in growth from GT and e-commerce channels for Sunflame, but CSD channel remains uncertain.

• Investment of ₹50 crore approved to expand battery plant capacity in Hyderabad.