V-Guard Industries Limited's Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The board recommended a final dividend of ₹1.50 per equity share (150%) for FY2025-26. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited financial results were published in Hindu Business Line (English) and Deepika (Malayalam) on May 13, 2026. Additionally, the company filed the transcript of its earnings call held on May 12, 2026, with the stock exchanges.

Management Commentary

The Managing Director noted that the ongoing West Asia conflict has caused operational uncertainties, commodity price inflation, and supply chain disruptions. The company navigated these challenges well, reflecting business resilience. The MD expressed hope for a strong start to FY27 with indications of a supportive summer. Management highlighted that the Electronics segment grew 22.3% year-on-year, while the Electrical segment grew 15.9%. The Consumer Durables segment reported a 4.1% revenue growth, with declines in Fans and Air Coolers offset by strong growth in Water Heaters and Kitchen categories.

Consolidated Financial Performance

On a consolidated basis, revenue from operations for FY2025-26 was ₹5,965.78 crores compared to ₹5,577.82 crores in the previous year. Total income stood at ₹5,989.29 crores against ₹5,598.71 crores. Profit before exceptional item and tax was ₹430.00 crores versus ₹413.95 crores. After an exceptional item of ₹22.11 crores under the New Labour Codes, profit before tax was ₹407.89 crores. Net profit was ₹308.33 crores compared to ₹313.72 crores. For the quarter ended March 31, 2026, revenue was ₹1,755.27 crores and net profit was ₹112.13 crores. Q4 EBITDA was ₹1.7B with a margin of 9.70%.

Standalone Financial Performance

On a standalone basis, revenue from operations for FY2025-26 was ₹5,691.78 crores compared to ₹5,308.87 crores. Total income was ₹5,727.90 crores versus ₹5,327.73 crores. Standalone profit before exceptional item and tax was ₹364.78 crores, while profit before tax was ₹343.87 crores. Standalone net profit was ₹259.37 crores against ₹260.22 crores. For the quarter ended March 31, 2026, standalone revenue was ₹1,687.16 crores and net profit was ₹95.35 crores.

Segment-Wise Performance

The Electricals segment was the largest revenue contributor at ₹2,461.08 crores, followed by Electronics at ₹1,639.58 crores. The Electricals segment recorded the strongest improvement in segment results, rising to ₹279.60 crores from ₹218.16 crores, while the Consumer Durables segment saw a decline to ₹26.08 crores from ₹69.38 crores.

Dividend and Book Closure

The board recommended a final dividend of ₹1.50 per equity share of ₹1/- each (150%) for FY2025-26, subject to shareholder approval. In a subsequent intimation filed on May 13, 2026, V-Guard Industries issued a correction to its earlier book closure communication dated May 12, 2026. The company clarified that the Register of Members will remain closed from Saturday, August 1, 2026 to Tuesday, August 11, 2026 (both days inclusive), correcting the previously stated start date of Friday, July 31, 2026. The record date remains unchanged at July 31, 2026, and the dividend will be paid to members whose names appear in the Register of Members or Register of Beneficial Owners as on that date. The 30th Annual General Meeting is scheduled for August 11, 2026, and the dividend will be disbursed on or before September 9, 2026.

V-Guard Industries Limited has received an Order-in-Original from the Commissioner of Customs (NS-V), JNCH, Nhava Sheva, regarding the misclassification of certain parts of products. The communication, dated May 12, 2026, adjudicates a Show Cause Notice (SCN) alleging that the goods were incorrectly classified, prompting a re-classification by the authority under Section 28(4) of the Customs Act.

Order Details

The order confirms a differential duty demand of INR 68,24,372 along with applicable interest under Section 28AA of the Customs Act. In addition, a penalty of INR 68,24,372 has been imposed under Section 114A, with an option to reduce this penalty to 25% subject to specific conditions. The following table summarises the key financial implications arising from the order:

Financial Implications

The financial implications arise from imports covered in the SCN and order, which relate to Bills of Entry spanning the period from May 2020 to July 2024. Both the confirmed duty and the penalty amount of INR 68,24,372 each are payable, along with the associated interest under Section 28AA. The option to reduce the Section 114A penalty to 25% remains available to the company, subject to fulfilment of prescribed conditions.

Company Response

In response to the order, V-Guard Industries stated that it is currently evaluating the merits of the order. The management indicated that the company will undertake appropriate steps, including filing an appeal before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) within the prescribed time limits. The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.