V-Guard Q4 revenue up 14%, PAT up 23%; cost inflation a concern
Strong Q4 performance masks brewing commodity cost pressure from West Asia war; management is confident on margin resilience but cautious near-term.
What management said
- Revenue growth of 14.1% to ₹1,755 crore driven by electronics (22.3%) and electricals (15.9%)
- EBITDA up 19.3% to ₹171 crore; margins stable at 35.3% gross
- Raw material costs up 8-13%; only 75% of required price hikes passed so far
- Q4 summer season strong in South India; April started well
- Sunflame growth 8.6%; non-CSD business growing 16%
The brief
V-Guard reported Q4 FY26 consolidated revenue of ₹1,755 crore, up 14.1% YoY, with electronics growing 22.3% and electricals 15.9%. EBITDA rose 19.3% to ₹171 crore, and PAT jumped 23% to ₹112 crore. Gross margins held at 35.3%. For FY26, full-year revenue grew 7% but EBITDA margin slipped to 8.8% from 9.2% due to a weak first half. Management flagged severe commodity inflation from the West Asia war, with raw material costs rising 8–13% across categories. Only 75% of required price hikes have been passed; the balance is expected as high-cost inventory hits in May–June. Sunflame grew 8.6%, with non-south markets now 48% of its revenue. Channel inventory is mixed: ceiling fans have high stock due to star-rating change, but summer categories are lean. Net cash improved to ₹231 crore. The verdict: strong Q4, but inflation clouds FY27 margin trajectory; near-term caution, double-digit EBITDA target deferred.
In their words
“We delivered a robust performance in Q4 marked by strong growth in both revenue and profitability.”— Mithun K. Chittilappilly — Managing Director
“There have been significant increases in input costs... 8 to 13% kind of cost increase... we probably landed about 75% of what price increases are required.”— Ramachandran V — Director & COO
“If the conflict in West Asia is not ending anytime soon, we are probably going to have a prolonged period of high cost going forward.”— Mithun K. Chittilappilly — Managing Director
Summarised from the V-Guard Industries Limited Q4 2026 earnings-call transcript. View transcript.