V-Guard Industries reports a 76% year-on-year increase in net profit in Q1 FY27, driven by margin improvements and diversified growth, prompting analysts to maintain a buy rating and target price of ₹404 amid positive market response.
V-Guard Industries has made a strong start to the new financial year, with Geojit Financial Services retaining its buy recommendation and target price of ₹404 after a Q1 that came in ahead of expectations. The brokerage said the consumer electricals maker’s latest numbers strengthened its case on margins as well as growth, even as it kept a cautious eye on commodity costs and execution risks.
According to the company’s results as reported by Kotak Neo and Scanx, consolidated net profit rose 76% year on year to ₹130.25 crore in the June quarter, while revenue from operations climbed 23.5% to ₹1,810.65 crore. The gains were broad-based, led by electricals and electronics, and the consumer durables business returned to profit. Shares rose more than 8% intraday after the announcement.
Geojit said gross margin held close to 37% despite inflation in raw materials and supply-chain pressure, helped by pricing discipline and a more favourable product mix. EBITDA jumped 54% year on year, with the margin improving by 210 basis points to 10.5%, while adjusted profit after tax rose 76% on the back of higher other income. The brokerage also noted that about 80% to 85% of the needed price increases had already been passed on, with revenue growth split between roughly 14% from pricing and 9% from volumes.
The earnings update also underlined V-Guard’s growing mix of businesses beyond its core southern market. Geojit said growth in the South was 37% year on year, versus 12% in non-South markets, supported by early pricing moves and favourable weather. Sunflame posted 18.3% growth, while the company is also scaling solar rooftop and battery storage operations and expects to launch a lighting category in FY27. Scanx reported that the board approved Mithun K Chittilappilly as the new chairperson, adding a governance change to a quarter that Geojit said reinforces its medium-term earnings outlook.
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