VIP Industries Limited shared its Q4 FY26 investor presentation in May 2026, providing a comprehensive update on the company's ongoing transformation following a change of control. The presentation outlined the key challenges inherited by the new management, the corrective actions undertaken, and the phased roadmap for returning the business to growth and profitability.

Change of Control and New Leadership

The company underwent a significant leadership transition, marked by three milestones on its change-of-control timeline.

The newly onboarded senior team includes Rahul Poddar as CFO, Alok Pathak as CSO, Sameer Wanchoo as CMO, V Harikumar as Head of E-com, Sanjeev Sharma as CIO, and Ramneek Walia heading New Age Design. This new leadership blends external expertise with experienced internal talent in manufacturing, procurement, supply chain, design, and HR.

Legacy Challenges Identified

The new management identified three core areas that had led to VIP losing market share prior to the transition.

• Bloated Inventory: Company and channel inventory stood at approximately Rs 700 Cr of finished goods and raw material inventory as of September 2025. Most channels were carrying approximately 90 days of inventory, with significant slow-moving stock and heavy discounting due to the absence of pricing guardrails.
• Broken Brand Architecture: Customer segmentation by brand was absent, with no defined pricing guardrails across brands and no structured product-channel-price-brand mix.
• Inefficient Supply Chain: Operations were fragmented across 25+ warehouses and 50+ logistics vendors, causing delivery delays and availability challenges. Bangladesh manufacturing capacity was significantly underutilized.

Actions Taken by New Management

The new management team executed a structured clean-up across inventory, brand architecture, and supply chain during H2 FY26.

The company confirmed that no incremental inventory provisions are expected going forward, and that a gross margin impact of 6–8% was already absorbed to enable the inventory correction.

Balance Sheet Clean-Up Completed

The balance sheet repair is a central highlight of the Q4 FY26 update. The following table summarizes the improvement between Q4'25 and Q4'26.

Approximately Rs 230 Cr of inventory reduction and approximately Rs 70 Cr of net debt reduction were achieved since March 2025. Inventory has been normalized at approximately 75 days as of March 2026.

Revenue Performance: Offline Turnaround Underway

The company's standalone revenue performance across H1 FY26 and H2 FY26 reflects the deliberate actions taken to correct channel stocking and reduce primary sales.

The sequential improvement in offline revenue de-growth — from -11% in H1'26 to -3% in H2'26 — reflects the channel stocking correction and a conscious decision to reduce primary sales. Online de-growth remains elevated and is expected to follow a similar recovery trajectory.

Profitability Impacted by One-Time Costs

Q4 FY26 profitability was affected by one-time costs, though the company notes that no incremental inventory provisions were taken in Q4'26. The quarterly EBITDA and adjusted EBITDA are presented below (all figures in Rs Cr).

The company noted that in addition to the above adjustments, a 6–8% gross margin compromise due to higher liquidation resulted in losses in Q3'26 and Q4'26.

Three-Phase Growth Agenda

VIP Industries has articulated a structured, multi-phase growth agenda.

• H2 FY26 – Stabilizing the Ship: Team build-out, re-energizing the channel, resetting brand and pricing guardrails, balance sheet repair, and channel inventory optimization. Both H2 FY26 objectives have been marked as completed.
• FY27 – Re-start Growth: New product rollout, supply chain optimization (logistics and procurement), manufacturing optimization, and portfolio margin optimization.
• FY28 & Beyond – Stronger Growth: Higher growth focus, stable state margin achievement, and operating leverage unlock to regain lost market share.

Early Signals Indicate Improving Momentum

The company reported encouraging early indicators from the Muhurat sales in April 2026:

• Retailers billed: more than 30% increase YoY
• General trade secondary sales: more than 35% increase YoY

Additionally, channel partner engagement was strengthened through BP roadshows across 20+ cities in January, luggage roadshows across 10+ cities in March, visits by 250+ dealers to the Nashik factory, 50+ dealers visiting VIP headquarters, and CEO market visits across 10+ cities. Key input variables — including inventory levels, employee morale, new product launches, net debt, channel partner engagement, and forecasting and fill rates — are all showing encouraging signs, according to the presentation.

VIP Industries Limited has informed the stock exchanges of a change in its senior management, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Sushant Junnarka, who served as Vice President – E-Commerce & Caprese and was classified as a Senior Management Personnel under Regulation 16(1)(d) of the SEBI Listing Regulations, has tendered his resignation from the services of the company, effective from the close of business hours of May 18, 2026.

Resignation Details

The company filed the requisite disclosure with both BSE Limited and the National Stock Exchange of India Ltd. in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The key details of the change, as prescribed under the applicable regulations, are summarised below:

Background

In his resignation communication, Mr. Junnarka noted that he served a three-month notice period as per his employment contract and expressed willingness to assist in the transition process. He acknowledged leading the e-commerce team and contributing to the company's digital growth over the past two financial years. The intimation was signed by Rahul Poddar, Chief Financial Officer of VIP Industries Limited, and has also been uploaded on the company's official website at www.vipindustries.co.in for investor reference.