Financial Results Summary (Standalone)
For the Quarter Ended September 30, 2026:
- Total Income: ₹471.86 Crores
- Total Expenses: ₹553.18 Crores
- Loss Before Exceptional Items and Tax: ₹(81.32) Crores
- Exceptional Items (Income): ₹48.91 Crores
- Loss Before Tax: ₹(32.41) Crores
- Tax Expense: ₹(0.28) Crores (Deferred Tax)
- Loss for the Period: ₹(32.69) Crores
- Basic EPS: ₹(2.30)
For the Half Year Ended September 30, 2026:
- Total Income: ₹1,046.49 Crores
- Total Expenses: ₹1,186.93 Crores
- Loss Before Exceptional Items and Tax: ₹(140.44) Crores
- Exceptional Items (Income): ₹48.91 Crores
- Loss Before Tax: ₹(91.53) Crores
- Tax Expense: ₹0.64 Crores (Current Tax: ₹0.00, Deferred Tax: ₹0.64)
- Loss for the Period: ₹(92.17) Crores
- Basic EPS: ₹(6.49)
Financial Results Summary (Consolidated)
For the Quarter Ended September 30, 2026:
- Total Income: ₹474.31 Crores
- Total Expenses: ₹551.53 Crores
- Loss Before Exceptional Items and Tax: ₹(77.22) Crores
- Exceptional Items (Income): ₹48.91 Crores
- Loss Before Tax: ₹(28.31) Crores
- Tax Expense: ₹(2.37) Crores (Deferred Tax)
- Loss for the Period: ₹(30.52) Crores
- Basic EPS: ₹(2.15)
For the Half Year Ended September 30, 2026:
- Total Income: ₹1,055.94 Crores
- Total Expenses: ₹1,187.81 Crores
- Loss Before Exceptional Items and Tax: ₹(131.87) Crores
- Exceptional Items (Income): ₹48.91 Crores
- Loss Before Tax: ₹(82.96) Crores
- Tax Expense: ₹(1.04) Crores (Current Tax: ₹0.10, Deferred Tax: ₹(1.14))
- Loss for the Period: ₹(84.08) Crores
- Basic EPS: ₹(5.92)
Exceptional Items
The standalone and consolidated results include the following exceptional items for the half year ended September 30, 2026:
1. Gain on sale of non-core assets: ₹48.91 Crores (Standalone and Consolidated)
2. Partial receipt of insurance claim relating to a fire at a plant of the subsidiary VIP Industries Bangladesh Private Limited on January 31, 2023: ₹4.32 Crores (Consolidated only)
3. Impact for loss of property due to a fire at the Company's regional warehouse in Guwahati on May 17, 2025: ₹(5.07) Crores (Consolidated only)
The total exceptional item for the half year is ₹48.91 Crores (Standalone) and ₹48.91 Crores (Consolidated).
Employee Stock Appreciation Rights (ESAR)
The Nomination and Remuneration Committee approved the grant of 150,000 new stock appreciation rights to eligible employees on August 3, 2026, under the 'ESARP 2018' plan. This resulted in an expense of ₹0.11 Crores for the quarter. During the quarter, 145,000 ESARs were lapsed/forfeited, and 20,000 were exercised, leading to the issuance of 3,545 equity shares. ₹0.32 Crores was transferred to Securities Premium during the half year.
Legal and Regulatory Disputes
1. Carlton Brand Dispute: An ongoing dispute with Carlton Shoes Ltd. & Anr. regarding the ownership and usage rights of the 'Carlton' brand in India is sub-judice before the Delhi High Court. The Supreme Court granted interim relief until May 31, 2026, to sell existing inventory. All inventory was sold by this date, and no new inventory is being made or sold pending the dispute's resolution. The company retains global rights for the brand.
2. Commercial Suit: A suit for recovery of ₹6.41 Crores has been filed against the company at the Bombay City Civil Court by a China-based company regarding a supply dispute. The company is defending the matter and, based on legal opinion, has not made any provision for liability.
Other Key Notes
- Sale of Non-Core Assets: The sale of identified non-core assets, approved by the Board on September 16, 2025, and December 29, 2025, was completed during FY26 and H1 FY27. The gain is reflected in the exceptional items.
- Inventory Provision: A provision of ₹93.74 Crores (Standalone) and ₹122.66 Crores (Consolidated) was made towards inventories in FY26. A partial reversal of ₹19.88 Crores (Standalone) and ₹22.88 Crores (Consolidated) was recorded in H1 FY27.
- Deferred Tax Assets: The company has restricted the recognition of Deferred Tax Assets in the parent company's financial results due to carried forward business losses and management's review of business plans.
- Segment Information: The company operates in a single segment: "Manufacturing and marketing of luggage and bags."
- Subsidiaries: The consolidated results include the following wholly-owned subsidiaries: Blow Plast Retail Limited, VIP Accessories BD Private Limited, VIP Industries Bangladesh Private Limited, VIP Industries BD Manufacturing Private Limited, and VIP Luggage BD Private Limited.
Balance Sheet Highlights (as of September 30, 2026)
Standalone:
- Total Assets: ₹1,603.58 Crores
- Total Equity: ₹118.48 Crores
- Total Liabilities: ₹1,485.10 Crores
Consolidated:
- Total Assets: ₹1,792.89 Crores
- Total Equity: ₹208.52 Crores
- Total Liabilities: ₹1,564.37 Crores
Cash Flow Highlights (H1 FY26)
Standalone:
- Net Cash from Operating Activities: ₹(29.70) Crores
- Net Cash from Investing Activities: ₹72.72 Crores
- Net Cash from Financing Activities: ₹29.96 Crores
- Net Change in Cash: ₹72.98 Crores
Consolidated:
- Net Cash from Operating Activities: ₹(31.45) Crores
- Net Cash from Investing Activities: ₹73.16 Crores
- Net Cash from Financing Activities: ₹32.04 Crores
- Net Change in Cash: ₹73.75 Crores
The results have been uploaded to the company's website (www.vipindustries.co.in) and will be published in newspapers as per SEBI LODR requirements.