V-Guard Industries Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,852.89 Cr (+38.20% YoY) and PAT growth of +71.00% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 29, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,852.89 Cr (+38.20% YoY) |
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| PAT (Q2) | Rs. 111.67 Cr (+71.00% YoY) |
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| EBITDA margin | 9.06% (+91 bps YoY) |
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| EPS (Q2) | Rs. 2.54 (+70.50% YoY) |
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| Market cap | Rs. 12,400.90 Cr |
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| CMP | Rs. 284.85 |
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Quarter Snapshot
Q2 revenue accelerated to +38.2% YoY with all segments growing over 20%, and PAT rose 71.0% YoY, keeping the >15% FY27 revenue guidance comfortably on track. However, the quarter missed management's own margin commitments: gross margin fell ~255 bps QoQ to 34.33%, EBITDA margin of 9.06% broke the double-digit pledge, and Electronics reverted below its 17-18% normative band amid copper-driven input cost inflation. H1 cash conversion (CFO 1.89x PAT) and net cash of Rs.530.44 Cr remain solid, but the Rs.280.82 Cr inventory build carries write-down exposure if copper corrects.
Key Investment Insights
Key Positives
- Revenue grew 38.2% YoY to Rs.1,852.89 Cr, accelerating from +23.5% in Q1; H1 revenue +30.55% YoY
- All four segments grew over 20% YoY: Electronics +59.9%, Electricals +41.2%, Consumer Durables +20.0%, Sunflame +20.5%
- PAT grew 71.0% YoY to Rs.111.67 Cr; EPS rose to Rs.2.54 from Rs.1.49
- EBITDA (excl. other income) grew 53.7% YoY to Rs.167.93 Cr; margin expanded YoY from 8.15% to 9.06%
- Consumer Durables segment result margin improved to 4.71% from 1.74% a year ago, extending recovery from a loss position in H1 FY26
- H1 CFO of Rs.458.35 Cr was 1.89x PAT; FCF of Rs.363.66 Cr; net cash rose Rs.299.28 Cr in the half to Rs.530.44 Cr
- Electricals held 10.61% margin within the ~10.5% ±1% normative band despite wires competition
- Employee cost ratio improved to 8.65% of revenue from 10.16% YoY
Risk Factors
- Gross margin fell to 34.33%, down ~255 bps QoQ and ~325 bps YoY, missing management's ~36.9% hold guidance
- Q2 EBITDA margin of 9.06% broke management's double-digit commitment and sits near the 9% floor of the guided band
- Electronics margin reverted to 15.96%, below the 17-18% normative band and down from 19.85% in Q1
- Direct costs grew far faster than revenue (materials +55.3%, traded purchases +77.7% vs revenue +38.2%) amid elevated copper
- Inventory build of Rs.280.82 Cr in H1 (to Rs.1,304.75 Cr) creates write-down exposure if copper prices decline; no write-down booked yet
- Effective tax rate rose to 25.42% from 23.25% YoY, a ~220 bps drag on PAT
- Sunflame margin of 4.69% remains below its year-ago 6.54% and far from the 12% target