VIP Clothing Limited reported a net profit of ₹98.10 crore for the financial year ended March 31, 2026, an increase of 79.80% compared to the previous year. The company's revenue from operations for FY26 stood at ₹2,538.29 crore, growing 7.15% year-on-year. The Board of Directors approved the audited standalone financial results at a meeting held on May 27, 2026. India Ratings & Research upgraded the company's long-term bank loan rating to ‘IND BBB-’ with a Stable Outlook and the short-term rating to ‘IND A3’ during the year.

For the quarter ended March 31, 2026, the company recorded a revenue from operations of ₹715.36 crore, compared to ₹649.08 crore in the corresponding period of the previous year. The profit for the quarter stood at ₹44.23 crore, a rise of 82.84%. EBITDA for Q4 FY26 increased to ₹68.21 crore, with margins improving to 9.54%. The diluted earnings per share (EPS) for the year was ₹1.07.

Financial Performance

The table below summarizes the key financial metrics for VIP Clothing Limited for the quarter and year ended March 31, 2026:

Balance Sheet and Cash Flow

The company's total assets as of March 31, 2026, stood at ₹3,282.53 crore, compared to ₹3,293.82 crore in the previous year. Total equity increased to ₹1,943.70 crore from ₹1,845.59 crore, while total liabilities decreased to ₹1,338.83 crore from ₹1,448.23 crore. The net cash generated from operating activities for the year was ₹202.30 crore, a turnaround from the previous year's net cash used of ₹373.61 crore.

Strategic Developments

The Board approved raising approximately ₹47.70 crore through the issuance of warrants on a preferential basis to promoter and non-promoter investors. The funds will be utilized for working capital, premiumization initiatives, and expanding the women's innerwear category. The company plans to launch an expanded women's innerwear range in the first half of the next financial year to scale its presence in the segment.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE450G01024/8d617b4fd9b6446c.pdf

VIP Clothing Limited has scheduled an Extraordinary General Meeting (EGM) on Thursday, June 11, 2026, via video conferencing to seek shareholder approval for the issuance of warrants on a preferential basis. The meeting aims to approve the allotment of up to 2,12,00,000 warrants convertible into fully paid-up equity shares, aggregating to ₹47,70,00,000. The issue price is fixed at ₹22.50 per warrant, which includes a premium of ₹20.50 over the face value of ₹2 per share. The company has intimated the exchanges regarding the newspaper publication of the pre-dispatch notice for the EGM.

Key Details of the Preferential Issue

The board approved the proposal on May 18, 2026, subject to shareholder and regulatory approvals. The warrants are proposed to be issued to 16 investors across promoter and non-promoter categories. The "Relevant Date" for determining the floor price is May 12, 2026. The key parameters of the issue are summarised below:

Utilization of Proceeds

The company intends to utilize the net proceeds of the issue, estimated at ₹47.70 crore, primarily for meeting working capital requirements and general corporate purposes. Specifically, ₹38.16 crore is allocated for working capital, while ₹9.54 crore is earmarked for general corporate purposes, which may include repaying high-cost unsecured debt. The deployment of funds is expected to be completed within one year from the receipt of funds.

Allottee-Wise Warrant Subscription

The 2,12,00,000 warrants are distributed among promoters, promoter group, and non-promoters. The breakdown of the proposed allotment is as follows:

EGM and Voting Details

The EGM will be held through Video Conferencing (VC) and Other Audio-Visual Means (OAVM). Remote e-voting will commence on June 8, 2026, and end on June 10, 2026. M/s. KRS & Co. has been appointed as the Scrutinizer for the e-voting process. The company has constituted a Preferential Issue Committee comprising Mr. Sunil Pathare, Mr. Kapil Pathare, and Mr. Uday Ajgaonkar to oversee the process.