V-Guard Industries , a leading consumer electrical and electronics company, reported a marginal decline in revenue for the first quarter, while announcing plans to enter the lighting segment. The company faced headwinds due to an unusually weak summer season but maintained its focus on expansion and diversification.

Financial Performance

V-Guard reported consolidated net revenue of INR 1,466.00 crores for the quarter, marking a slight decline of 0.7% compared to the same period last year. The company attributed this subdued performance to a weak summer season and a high base effect from the previous year.

The Electronics segment, comprising Stabilizers, Inverter Systems, UPS Systems, and Solar Systems, delivered moderate revenue growth of 4.5% year-on-year. The Electrical segment, which includes Wires, Pumps, Switchgear, and Modular Switches, registered a growth of 7.6%. However, the Consumer Durables segment, covering Fans, Water Heaters, Kitchen Appliances, and Air Coolers, reported a revenue degrowth of 16.3% due to early onset of monsoon affecting cooling products demand.

Gross margin improved marginally to 36.7% from 36.6% in the same quarter last year. EBITDA, excluding other income, stood at INR 124.00 crores, declining 20.7% year-on-year, with the EBITDA margin at 8.4% compared to 10.5% in the previous year's quarter. Profit after tax decreased to INR 74.00 crores from INR 99.00 crores in the previous year.

Geographical Performance

Revenues from non-South markets grew by 2.1% year-on-year, now contributing 52.3% of the total revenues, while the South market experienced a degrowth of 3.3%. The company's strong markets in the Southern and Eastern regions were relatively more impacted by the weak summer.

Entry into Lighting Segment

V-Guard announced plans to enter the lighting segment, aiming to complete its portfolio of electrical products. The company will initially focus on the consumer and residential lighting market, leveraging its existing distribution network and brand strength. Management believes that despite challenges in the lighting industry, there are growing sub-segments such as downlighters and premium architectural lighting for residential use.

Sunflame Integration

The company has initiated actions to merge Sunflame operations with V-Guard to fast-track the realization of synergy benefits. This integration is expected to bring V-Guard's capabilities into Sunflame, particularly in areas such as R&D, new product development, and go-to-market strategies.

Outlook

V-Guard has revised its growth guidance to 11-13% for the current financial year and expects EBITDA margins between 8.5-9.5%. The company continues to invest in brand building and capacity enhancement, with plans for a new fan manufacturing plant to be operational in 18 months.

Mithun K. Chittilappilly, Managing Director of V-Guard Industries, commented, "We expect the demand to normalize in the coming quarters. Despite the challenges in Q1, we remain committed to our long-term growth strategy and continue to invest in brand building and capacity enhancement."

As V-Guard navigates through the current challenges and pursues new opportunities, the company's diversification strategy and focus on expanding its product portfolio are expected to drive growth in the coming quarters.

V-Guard Industries , a leading consumer electricals and electronics company, has reported a marginal decline in its financial performance for the first quarter of the fiscal year 2026. The company's results reflect the challenges posed by a weak summer season and a high base effect from the previous year.

Revenue and Profit

For the quarter ended June 30, 2025, V-Guard's consolidated net revenue from operations stood at Rs. 1,466.08 crore, representing a slight decrease of 0.70% compared to Rs. 1,477.10 crore in the corresponding period of the previous year. The company's consolidated profit after tax (PAT) for the quarter was Rs. 73.85 crore, down by 25.40% from Rs. 98.97 crore recorded in the same period last year.

Segment Performance

The company's performance varied across its different business segments:

1. Electronics: This segment, which includes stabilizers, UPS, and inverters, showed moderate growth with revenues of Rs. 536.29 crore, up 4.50% year-on-year.
2. Electricals: The segment, comprising wires, pumps, and switchgears, also registered growth with revenues of Rs. 524.70 crore, an increase of 7.60% compared to the previous year.
3. Consumer Durables: This segment, which includes fans, water heaters, and kitchen appliances, experienced a significant decline of 16.30%, with revenues of Rs. 349.58 crore.
4. Sunflame: The Sunflame brand, which is part of V-Guard's portfolio, saw a 5.40% decrease in revenue, contributing Rs. 55.51 crore to the total.

Geographical Performance

V-Guard's performance showed regional variations:

• Non-South markets grew by 2.10% year-on-year, contributing 52.30% of the total revenues in Q1 FY26.
• South markets witnessed a decline of 3.30% compared to the same quarter last year.

Financial Highlights

Strategic Initiatives

V-Guard is implementing several strategic measures to improve its performance:

1. In-house Production: The company is focusing on stabilizing newly commissioned facilities and advancing pipeline projects to increase the share of in-house manufacturing.
2. Merger with Sunflame: V-Guard has initiated actions to merge Sunflame operations, which is expected to fast-track the realization of synergy benefits.
3. Geographical Expansion: The company continues to invest in brand building and capacity enhancement, particularly in non-South markets.

Management Commentary

Mithun Chittilappilly, Managing Director of V-Guard Industries, commented on the results: "Topline growth for the first quarter of FY26 was subdued due to a weak summer season and last year's high base. Electronics and electricals segments registered moderate growth while durables segment declined due to lower demand for summer categories. Gross margins continue to remain healthy. We expect the demand to normalise in the coming quarters and continue to invest in brand building and capacity enhancement."

Future Outlook

Despite the challenging quarter, V-Guard remains optimistic about future prospects. The company expects demand to stabilize in the coming quarters and is continuing its investments in brand building and capacity enhancement. The merger with Sunflame and focus on in-house production are expected to yield positive results in the medium to long term.

V-Guard's strategic initiatives and diversification efforts across product categories and geographical regions position it to potentially capitalize on market recovery and growth opportunities in the consumer electricals and electronics sector.