News ArticleV-Guard Industries Posts 38.2% Revenue Growth and 71% Profit Increase in Q2 FY27
Strong performance driven by electronics and electrical segments amid input cost inflation; half-year profit rises 74% to ₹242 crore
V-Guard Industries Limited reported a 38.2% year-on-year increase in consolidated net revenue to ₹1,852.89 crore and a 71% rise in profit after tax to ₹111.67 crore for Q2 FY27. The electronics segment showed exceptional growth of 59.9%, driven by solar and digital inverter products, contributing to overall strong operational performance despite margin pressures from input cost inflation.
V-Guard Industries Limited
Investor Presentation
V-Guard Industries Limited announced a 38.2% year-on-year increase in consolidated net revenue to ₹1,852.89 crore and a 71% rise in profit after tax to ₹111.67 crore for the quarter ended September 30, 2026 (Q2 FY27).
The electronics segment recorded 59.9% revenue growth, boosted by solar products and digital inverter and battery sales, while the electricals segment’s revenue grew 41.2% driven by higher volumes and commodity price increases. Consumer durables revenue increased by 20%, supported by better profit margins.
Gross margin for Q2 FY27 declined to 34.3% from 37.6% year-on-year due to product mix changes and input cost inflation. To address this, the company is implementing pricing adjustments and focusing on cost optimization and increasing in-house manufacturing.
For the half year ending September 30, 2026 (H1 FY27), consolidated net revenue increased 30.5% to ₹3,663.54 crore, with profit after tax rising 74% to ₹241.92 crore. Cash flow from operations improved significantly to ₹458.35 crore, and the company maintained a strong net cash position of ₹530.44 crore as of September 30, 2026.
V-Guard reported return on equity (ROE) of 16% and core return on capital employed (ROCE) excluding cash of 23.4% over the trailing twelve months.
The company continues to monitor geopolitical risks impacting supply chains and expects continued healthy growth in upcoming quarters.
Highlights
- Consolidated net revenue grew 38.2% year-on-year to ₹1,852.89 crore in Q2 FY27.
- Profit after tax increased by 71% to ₹111.67 crore for Q2 FY27.
- Electronics segment showed highest segment growth at 59.9%, driven by solar and digital inverter products.
- Gross margin declined by 325 basis points to 34.3% due to product mix and input cost inflation.
- Operating cash flow for H1 FY27 reached ₹458.35 crore, more than doubling compared to previous year.
- Net cash position strengthened to ₹530.44 crore as of September 30, 2026.
Key Data Snapshot
What happened
- V-Guard Industries reported a 38.2% year-on-year increase in consolidated net revenue to ₹1,852.89 crore for Q2 FY27.
- Profit after tax rose 71% to ₹111.67 crore for the quarter.
- The electronics segment led growth with 59.9% revenue increase, supported by solar and digital inverter products.
- Gross margin decreased to 34.3% due to a change in product mix and input cost inflation.
- The company is implementing pricing actions and cost optimization to recover margins.
Key details
- Electricals segment revenue increased by 41.2% due to higher volumes and commodity price inflation.
- Consumer durables segment revenue rose 20% with improved profitability.
- For H1 FY27, consolidated revenue reached ₹3,663.54 crore, a 30.5% increase from the previous year.
- Cash flow from operations for H1 FY27 improved significantly to ₹458.35 crore.
- Net cash as of September 30, 2026 stood at ₹530.44 crore, up from ₹92.78 crore a year prior.
Financial performance
- EBITDA for Q2 FY27 rose 53.7% to ₹167.93 crore, with margin expansion to 9.1% from 8.1%.
- Profit after tax margin increased to 6.0% from 4.9% year-on-year.
- Advertising and promotion expense decreased to 2.3% of revenues from 2.9%.
- Employee cost and other expenditure ratios improved year-over-year.
- Diluted earnings per share (EPS) for Q2 FY27 was ₹2.54, up from ₹1.48 in Q2 FY26.
Strategic context
- Functional integration of Sunflame brand contributed to product portfolio strengthening and market presence.
- The company is focusing on in-house manufacturing to mitigate margin pressures.
- Monitoring of geopolitical conditions continues to protect supply and margin stability.
- V-Guard expects continued healthy growth in the coming quarters based on current market conditions.
Highlights
- Consolidated net revenue grew 38.2% year-on-year to ₹1,852.89 crore in Q2 FY27.
- Profit after tax increased by 71% to ₹111.67 crore for Q2 FY27.
- Electronics segment showed highest segment growth at 59.9%, driven by solar and digital inverter products.
- Gross margin declined by 325 basis points to 34.3% due to product mix and input cost inflation.
- Operating cash flow for H1 FY27 reached ₹458.35 crore, more than doubling compared to previous year.
- Net cash position strengthened to ₹530.44 crore as of September 30, 2026.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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