VIP Industries Limited has reported a significant widening of losses for both the quarter and the full year ended March 31, 2026, alongside a contraction in revenue from operations on a consolidated basis. The Board of Directors, at its meeting held on May 15, 2026, approved the audited financial results (standalone and consolidated) for the quarter and year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, Price Waterhouse Chartered Accountants LLP, issued an audit report with an unmodified opinion on the annual audited financial results. The results were signed by Rahul Poddar, Chief Financial Officer, and the board meeting was chaired by Renuka Ramnath, Chairperson (DIN No: 00147182).

Consolidated Financial Performance

The company's consolidated revenue from operations declined to ₹436.23 crore in Q4 FY26, compared to ₹494.21 crore in the corresponding quarter of the previous year. For the full year FY26, consolidated revenue from operations stood at ₹1,858.13 crore, down from ₹2,178.43 crore in FY25. The following table presents the key consolidated financial results:

Standalone Financial Highlights

On a standalone basis, VIP Industries reported revenue from operations of ₹430.61 crore for Q4 FY26, compared to ₹488.13 crore in Q4 FY25. For the full year FY26, standalone revenue from operations was ₹1,849.09 crore versus ₹2,169.66 crore in FY25. The standalone net loss after tax for Q4 FY26 stood at ₹142.33 crore, compared to a net loss of ₹30.51 crore in Q4 FY25. For the full year FY26, the standalone net loss after tax was ₹342.88 crore against ₹81.40 crore in FY25. The company's standalone reserves (excluding revaluation reserves) stood at ₹180.31 crore as of March 31, 2026, compared to ₹521.27 crore as of March 31, 2025.

Equity, Reserves and Balance Sheet

The company's paid-up equity share capital stood at ₹28.41 crore as of March 31, 2026, marginally up from ₹28.40 crore as of March 31, 2025. On a consolidated basis, reserves (excluding revaluation reserves) were ₹261.09 crore for FY26, compared to ₹587.76 crore for FY25. Total consolidated assets stood at ₹1,604.22 crore as of March 31, 2026, versus ₹1,856.37 crore as of March 31, 2025, while total consolidated equity declined to ₹289.50 crore from ₹616.16 crore. Consolidated current borrowings rose to ₹410.75 crore from ₹415.25 crore, and consolidated inventories declined significantly to ₹472.45 crore from ₹698.42 crore.

Exceptional Items and Key Developments

The results include several exceptional items during the year. On a consolidated basis, exceptional income totalled ₹78.18 crore for FY26, comprising a gain of ₹63.53 crore from the sale of non-core assets, insurance claim receipts of ₹4.57 crore related to a fire at the company's regional warehouse in Guwahati on May 17, 2025, and ₹15.15 crore from partial insurance claim receipts related to a fire at the plant of subsidiary VIP Industries Bangladesh Private Limited on January 31, 2023. Additionally, the standalone results include a provision towards inventories amounting to ₹93.74 crore accrued during FY26 (FY25: ₹4.28 crore), while consolidated results include an inventory provision of ₹122.66 crore (FY25: ₹7.53 crore). During the year, the company also granted 7,20,000 stock appreciation rights to eligible employees under ESARP 2018, resulting in a net expense of ₹2.23 crore. A GST investigation under Section 67 of the Maharashtra GST Act and Central GST Act was initiated during the year; the company paid ₹14.11 crore comprising tax of ₹8.63 crore (available as input tax credit) and interest of ₹4.78 crore, with no material adverse impact on the financial position.

Regarding the promoter group change, certain entities of the promoter group entered into an agreement with Multiples Private Equity Fund for the sale of up to 4,54,46,305 equity shares constituting approximately 32% of the total paid-up share capital. The Shareholders' Agreement became effective from September 23, 2025, and the Multiples group acquired 'Control' and was classified as 'Promoters' of the company.

Auditor Appointment

The Board of Directors, on the recommendation of the Audit Committee and subject to shareholder approval, approved the appointment of M/s. Deloitte Haskins & Sells Chartered Accountants LLP (FRN: 117364W/W100739) as the statutory auditors of the company for a term of five years — from the conclusion of the 59th Annual General Meeting to be held in 2026 till the conclusion of the 64th Annual General Meeting to be held in 2031. This follows the completion of two terms by Price Waterhouse Chartered Accountants LLP, which was appointed at the 54th AGM and whose tenure concludes at the 59th AGM. Deloitte Haskins & Sells Chartered Accountants LLP has a strength of over 45,000 personnel and 981 partners and serves as statutory auditor to several companies listed on stock exchanges in India.

Regulatory Compliance

The financial results were submitted to BSE Limited and the National Stock Exchange of India Ltd. pursuant to Regulation 47 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the quarterly and annual financial results is available on the websites of the stock exchanges as well as on the company's website at www.vipindustries.co.in .

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.