Electricals drive double-digit growth, but labour code-related provision weighs on reported profit
V-Guard Industries reported a 10.6 per cent year-on-year rise in consolidated revenue to Rs 1,403.5 crore in the third quarter of FY26, supported by strong growth in its electricals segment, even as profitability came under pressure due to a one-time labour-related charge.
Profit after tax for the December quarter declined 5.2 per cent to Rs 57.1 crore, compared with Rs 60.2 crore a year earlier. The company attributed the decline to an exceptional charge of Rs 22.1 crore recognised following a reassessment of employee benefit obligations under the newly notified labour codes. Excluding this impact, underlying profit after tax grew 22.3 per cent year-on-year.
Quarterly revenue climbed 10.6 per cent year-on-year to Rs 1,403.5 crore, compared with Rs 1,268.7 crore a year earlier, supported mainly by healthy volume growth in the electricals portfolio.
Operating performance remained steady, with Ebitda grew 18.2 per cent to Rs 123.2 crore from Rs 104.2 crore last year margin coming in at 9.2 per cent, compared with 8.6 per cent in the year-ago period, reflecting cost discipline and a favourable product mix.
The electricals segment emerged as the key growth driver during the quarter, with revenue rising 25.8 per cent year-on-year, aided by strong volume growth despite commodity price inflation. Consumer durables revenue grew 4.6 per cent, while electronics remained flat. The Sunflame business reported a 9.9 per cent decline in revenue.
Regionally, V-Guard’s south India business outperformed, recording a 20.1 per cent year-on-year growth and accounting for 55.4 per cent of total revenue excluding Sunflame. Non-south markets grew at a more modest pace of 3.3 per cent.
Commenting on the performance, Managing Director Mithun K Chittilappilly said the company delivered double-digit growth in the third quarter, driven primarily by electricals, while margins remained resilient despite inflationary pressures. He added that V-Guard is optimistic about demand momentum heading into the summer season.
