Vaibhav Global Limited (VGL), a leading electronic retailer of fashion jewelry and lifestyle products, has reported a strong performance for the second quarter of fiscal year 2026, with revenue growth exceeding guidance and significant improvement in profitability.

Financial Highlights

• Consolidated revenue reached INR 877.00 crores, up 10.2% year-on-year
• EBITDA margin expanded by 130 basis points to 10%
• PAT increased by 71% year-on-year to INR 48.00 crores
• Gross margin remained strong at 63.5%

Regional Performance

• US revenue grew by 6.7% year-on-year in USD terms
• UK revenue increased by 5.7% year-on-year in GBP terms
• Germany revenue remained flat

Digital Growth and Strategy

• Digital sales contributed 42% of B2C revenue, up from 39% last year
• The company aims to achieve 50% digital sales contribution by FY27
• Investments in OTT platforms like Roku and gaming platforms such as AppLovin are showing positive results

Product Mix and Innovation

• Lab-grown diamonds now represent 10.3% of total sales, up from 5.5% last year
• Lifestyle products accounted for 36% of total sales, with a medium-term target of 50%

Operational Initiatives

• VGL began jewelry casting operations in the US to address tariff uncertainties
• The company is leveraging its vertically integrated model to navigate challenges in the US market

Dividend

• The Board declared a second interim dividend of INR 1.50 per equity share

Outlook

• VGL maintains its FY26 revenue guidance of 7-9% growth
• The company aims for mid-teen revenue growth over the medium term, along with operating leverage

Sunil Agrawal, Managing Director of Vaibhav Global Limited, commented on the results: "We are pleased to report another strong quarter with revenue growth above our guidance range and strong PAT growth despite macro headwinds. Our vertically integrated global supply chain continues to be a key differentiator, enabling cost efficiency, operational flexibility, and industry-leading margins."

The company's focus on digital growth, product innovation, and operational efficiency appears to be paying off, as evidenced by the expansion in EBITDA margin and significant increase in PAT. However, challenges remain in certain markets, particularly Germany, where the company is working to improve digital performance and achieve EBITDA breakeven for the full year FY26.

Vaibhav Global's ability to navigate tariff uncertainties in the US market through strategic initiatives like local casting operations demonstrates the company's agility and adaptability. As the company continues to invest in digital platforms and expand its product offerings, it seems well-positioned to capitalize on growth opportunities in its key markets.

Vaibhav Global Limited (VGL), a global e-tailer of fashion jewelry and lifestyle products, has reported a robust financial performance for the second quarter of fiscal year 2026, with significant growth in revenue and profitability.

Strong Financial Performance

VGL reported a 10.2% year-on-year increase in revenue, reaching Rs 877.00 crores for Q2 FY26, surpassing the company's guidance. The company's Profit After Tax (PAT) saw a remarkable 71% surge, climbing to Rs 48.00 crores. EBITDA also showed impressive growth, increasing by 28% with margins expanding by 130 basis points to 10%.

Key Financial Highlights

The company maintained its gross margins at 63.5%, attributed to an efficient product mix and pricing discipline. Digital revenue contributed significantly, accounting for 42% of B2C revenue, while in-house brands increased their share to 41% of gross B2C revenue, up from 31% in the previous year.

Dividend Declaration and Customer Growth

VGL's Board of Directors declared a second interim dividend of Rs 1.50 per equity share, representing a 53% payout ratio. This comes in addition to the previously declared interim dividend of Rs 1.50 per share, bringing the total dividend for the current period to Rs 3.00 per share.

The company also reported strong customer metrics, with unique customers reaching an all-time high of 7.14 lakhs, marking a 5% year-on-year increase.

Management Commentary and Outlook

Sunil Agrawal, Managing Director of Vaibhav Global Limited, expressed satisfaction with the quarter's performance, stating, "We are pleased to report a strong quarter with revenue growth exceeding our guidance. With a strong balance sheet, healthy cashflows, and improving profitability, we are well positioned to sustain growth."

The company maintains its FY26 revenue guidance of 7-9% growth, with potential upside as macro conditions improve and tariff concerns ease.

Operational Highlights

• Customer retention rate sustained at 41%
• Repeat purchases averaged 22 pieces per customer (TTM)
• ESG initiatives progressing well, with over 106 million meals donated since inception of the 'your purchase feeds...' program
• ICRA ESG Score improved to '73' (Strong)
• Received Excellence in Manufacturing Award from the Indo-American Chamber of Commerce

Vaibhav Global Limited continues to strengthen its position in the global e-commerce market for fashion jewelry and lifestyle products, with operations spanning the US, UK, and German markets. The company's focus on digital revenue, in-house brands, and customer retention appears to be yielding positive results in a competitive retail landscape.