V-Guard Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Q2 FY27 revenue increased by 38.2% YoY to ₹1,852.89 crore
  • South markets witnessed YoY growth of 51% while Non-South markets grew by 23.2% in Q2 FY27
  • Non-South markets contributed 41% of total revenues in Q2 FY27 compared to 46% in Q2 FY26
  • Gross margin decreased 325 bps YoY to 34.3% from 37.6% in Q2 FY26
  • Advertising/promotional spends were 2.3% of revenues in Q2 FY27 compared to 2.9% in Q2 FY26

Segment-wise Performance

Q2 FY27 Segment Revenue Performance:
  • Electronics: ₹510.24 crore (27.5% of total), 59.9% YoY growth
  • Electricals: ₹794.25 crore (42.9% of total), 41.2% YoY growth
  • Consumer Durables: ₹475.22 crore (25.7% of total), 20.0% YoY growth
  • Sunflame: ₹76.08 crore (4.1% of total), 20.5% YoY growth
Q2 FY27 Segment Result Performance:
  • Electronics: ₹81.43 crore profit (16.0% margin), 48.4% YoY growth
  • Electricals: ₹84.24 crore profit (10.6% margin), 29.6% YoY growth
  • Consumer Durables: ₹22.40 crore profit (4.7% margin), 224.2% YoY growth
  • Sunflame: ₹3.57 crore profit (4.7% margin), -13.6% YoY decline
H1 FY27 Segment Revenue Performance:
  • Electronics: ₹1,168.70 crore (31.9% of total), 36.6% YoY growth
  • Electricals: ₹1,464.37 crore (40.0% of total), 34.7% YoY growth
  • Consumer Durables: ₹891.93 crore (24.3% of total), 19.6% YoY growth
  • Sunflame: ₹141.77 crore (3.9% of total), 19.5% YoY growth

Financial Highlights

Q2 FY27 Financial Performance:
  • Revenue: ₹1,852.89 crore
  • EBITDA: ₹167.93 crore (9.1% margin)
  • PAT: ₹111.67 crore (6.0% margin)
  • EPS: ₹2.54 (diluted)
  • Tax rate: 25.4%
H1 FY27 Financial Performance:
  • Revenue: ₹3,663.54 crore (30.5% YoY growth)
  • PAT: ₹242 crore (74% YoY growth)
  • EPS: ₹5.49 (diluted)
  • Tax rate: 24.8%
Margin Analysis Q2 FY27 vs Q2 FY26:
  • Gross Margin: 34.3% vs 37.6%
  • EBITDA Margin: 9.1% vs 8.1%
  • PAT Margin: 6.0% vs 4.9%
  • Employee Cost/Revenue: 8.7% vs 10.2%
  • Other Expenditure/Revenue: 16.6% vs 19.3%

Geographical Revenue Split

Q2 FY27 Geographical Performance:
  • South: ₹1,092.42 crore (59.0% of total), 51.0% YoY growth
  • Non-South: ₹760.47 crore (41.0% of total), 23.2% YoY growth
H1 FY27 Geographical Performance:
  • South: ₹2,066.53 crore (56.4% of total), 39.0% YoY growth
  • Non-South: ₹1,597.01 crore (43.6% of total), 20.9% YoY growth

Balance Sheet Snapshot

  • Net cash as of September 30, 2026: ₹530.44 crore (vs ₹92.78 crore on September 30, 2025)
  • CFO generation for H1 FY27: ₹458.35 crore (vs ₹195.08 crore for H1 FY26)
  • ROE (trailing twelve months): 16.0%
  • Core ROCE excluding cash (trailing twelve months): 23.4%
Working Capital Metrics (as of September 30, 2026):
  • Debtor days: 21
  • Inventory days: 108
  • Creditor days: 88
  • Working Capital Turnover days: 41

Capex & Cash Flow Health

  • Operating Cash Flow for H1 FY27: ₹458.35 crore
  • Strong cash flow generation supporting net cash position of ₹530.44 crore

Management Commentary & Growth Outlook

According to Mr. Mithun Chittilappilly, Chairman & Managing Director: \"The business delivered another quarter of robust and consistent performance with all segments delivering strong growth which was a combination of both price and healthy volume growth for most of the categories.\"

  • Growth driven by inherent resilience of the business, right focus and supportive market conditions
  • Electronics segment reported particularly high growth aided by Solar Products as well as Digital Inverter & Battery
  • Electricals segment witnessed both volume growth and higher price realisations driven by commodity price inflation
  • Consumer Durables reported growth in revenues along with improvement in profitability
  • Gross margin moderated due to product mix and continued input cost inflation
  • Pricing actions being undertaken to mitigate cost pressures
  • Expect some recovery in margins as pricing actions take effect, supported by cost optimization and increasing share of in-house manufacturing
  • Monitoring geo-political situation and will take appropriate actions to protect supplies and margins
  • Hopeful to deliver healthy growth in upcoming quarters

Market Overview

The presentation included market size data for key product categories:

Electronics Segment:
  • Stabilizers: Total market ₹1,600-2,000 crore, V-Guard market share 40-45%
  • DUPS & Battery: Total market ₹13,000-16,000 crore, V-Guard market share 5-7%
Electricals Segment:
  • House Wiring Cables: Total market ₹21,000-25,000 crore, V-Guard market share 8-9%
  • Switchgears: Total market ₹4,000-4,500 crore, V-Guard market share ~5%
  • Modular Switches: Total market ₹7,000-9,000 crore
  • Pumps: Total market ₹5,000-6,000 crore, V-Guard market share 9-12%
Consumer Durables Segment:
  • Water Heaters: Total market ₹3,000-4,000 crore, V-Guard market share 14-16%
  • Electric Fans: Total market ₹12,000-14,000 crore, V-Guard market share 5-7%
  • Solar Water Heaters: Total market ₹800-900 crore, V-Guard market share 15-17%
  • Air Coolers: Total market ₹6,500-8,000 crore
  • Kitchen Appliances: Various sub-segments with total markets ranging from ₹2,200-6,500 crore