Luggage manufacturer VIP Industries reports increased sales for the first time in seven quarters despite a widened net loss, driven by new product launches and strategic restructuring amid rising input costs.
VIP Industries reported a wider consolidated net loss in the June quarter as higher input costs continued to squeeze margins, even though sales returned to year-on-year growth for the first time in seven quarters. The luggage maker said the loss rose to ₹53.6 crore in the first quarter of fiscal 2027 from ₹13.1 crore a year earlier, while revenue from operations increased 3% to ₹578 crore.
The company’s operating performance remained weak. Earnings before interest, tax, depreciation and amortisation moved to a loss of ₹11.2 crore from a profit of ₹24.7 crore a year earlier, as inflation in raw material costs linked to higher crude prices offset the benefit of improved sales. On a sequential basis, revenue rose 33%, suggesting the business recovered some momentum after a difficult run.
VIP Industries said the latest quarter marked an important step in its turnaround effort. The company has launched more than 80 new products, which it said now account for about half of revenue. It also said it has completed the first phase of its transformation programme, which included reducing inventory across the company and its distribution network, tightening brand and pricing controls, strengthening the leadership team and rebuilding its channel relationships.
Atul Jain, managing director and chief executive of VIP Industries, said the business was entering a new phase after dealing with earlier problems. The company is expecting growth to accelerate in the second quarter, although it did not give detailed financial guidance in the update. Business Standard had reported in May that VIP Industries closed the previous quarter with a much deeper loss and weaker revenue, underscoring the scale of the recovery still ahead.
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