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V-Guard Q3 Revenue Up 10.6% to ₹1403 Cr; Underlying PAT Grows 22.3% Despite One-Time Charge
V-Guard Industries reported a 10.6% YoY revenue growth for Q3 FY26, reaching ₹1403.51 crore, led by a strong 25.8% surge in the Electricals segment. Although reported PAT declined by 5.2% to ₹57.06 crore, this was primarily due to a one-time exceptional charge of ₹22.11 crore related to the New Labour Codes. Excluding this non-recurring item, underlying PAT grew by 22.3%, reflecting strong operational performance. The company also showed significant improvement in working capital management, reducing the cycle from 68 to 53 days.
Key Highlights
Consolidated Net Revenue grew 10.6% YoY to ₹1403.51 crore in Q3 FY26.
Electricals segment revenue surged 25.8% YoY to ₹601.98 crore, while Sunflame revenue declined 9.9%.
A one-time exceptional item of ₹22.11 crore was recognized for employee benefit obligations under New Labour Codes.
Working capital days improved significantly to 53 days from 68 days in the previous year.
South region growth was robust at 20.1%, significantly outperforming the Non-south region's 3.3% growth.
💼 Action for Investors
Investors should look past the reported PAT decline as the underlying business remains strong with 22% growth and improved efficiency. The strong performance in the Electricals segment and better working capital management position the company well for the upcoming peak summer season.
V-Guard Q3 Revenue Up 10.6% to ₹1,403 Cr; Profit Dips on ₹22 Cr Exceptional Item
V-Guard Industries reported a 10.6% YoY increase in consolidated revenue to ₹1,403.51 crore for Q3 FY26. However, consolidated net profit declined by 5.2% YoY to ₹57.06 crore, primarily due to a one-time exceptional charge of ₹22.11 crore related to the implementation of New Labour Codes. The Electricals segment performed strongly with revenue rising to ₹601.98 crore, while the company also announced the allotment of 409,887 equity shares under its ESOP scheme.
Key Highlights
Consolidated revenue for Q3 FY26 rose 10.6% YoY to ₹1,403.51 crore.
Consolidated net profit stood at ₹57.06 crore, impacted by a ₹22.11 crore exceptional item for labour code compliance.
Electricals segment revenue grew significantly to ₹601.98 crore from ₹478.55 crore YoY.
Board approved the re-appointment of Prof. Biju Varkkey and appointment of Dr. Reena Philip as directors.
Allotted 409,887 equity shares of face value ₹1 each to 20 employees under ESOS 2013.
💼 Action for Investors
Investors should focus on the healthy top-line growth and strong Electricals segment performance while treating the profit dip as a non-recurring accounting adjustment. Monitor the integration of Sunflame and the impact of rising raw material costs on future margins.
V-Guard Q3 Results: Revenue Up 10.6% to ₹1,403 Cr; PAT Dips 5.2% on Exceptional Labour Charge
V-Guard Industries reported a 10.6% YoY growth in consolidated revenue to ₹1,403.51 crore for Q3 FY26, led by strong performance in the Electricals segment. However, consolidated Net Profit declined by 5.2% YoY to ₹57.06 crore, primarily due to a one-time exceptional charge of ₹22.11 crore related to the New Labour Codes. The company also announced the re-appointment of Prof. Biju Varkkey as an Independent Director and the appointment of Dr. Reena Philip to the Board. Operational performance was mixed as the Electricals segment saw growth while Consumer Durables faced margin pressure.
Key Highlights
Consolidated Revenue from operations increased 10.6% YoY to ₹1,403.51 crore.
Consolidated Net Profit stood at ₹57.06 crore, down from ₹60.22 crore in the previous year's quarter.
An exceptional item of ₹22.11 crore was recognized due to the financial impact of New Labour Codes.
Electricals segment revenue grew significantly to ₹601.98 crore compared to ₹478.55 crore YoY.
The Board allotted 4,09,887 equity shares to employees under the ESOS 2013 scheme.
💼 Action for Investors
Investors should look past the one-time exceptional charge to assess core operational efficiency, particularly the strong growth in the Electricals segment. Monitor the progress of the Sunflame merger and margin recovery in Consumer Durables in upcoming quarters.
V-Guard Industries Grants 2.13 Lakh Stock Options Under ESOS 2013 at ₹1 Exercise Price
V-Guard Industries has approved the grant of 213,527 stock options to eligible employees under its ESOS 2013 scheme. These options are exercisable at a price of ₹1 per share, which is the face value, representing a significant discount to the current market price. The vesting period is spread over four years, featuring both time-based and performance-based criteria to ensure employee retention and alignment with company goals. This is a standard corporate procedure for incentivizing human capital.
Key Highlights
Grant of 2,13,527 equity options to eligible employees under the ESOS 2013 scheme.
Exercise price is set at ₹1 per option, equivalent to the face value of the shares.
Vesting period extends up to 4 years, with performance-based vesting occurring in the final year.
Employees have an exercise period of 6 years from the date of vesting.
The scheme complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
💼 Action for Investors
This is a routine administrative announcement with negligible impact on the company's immediate financials or share price. No specific action is required as the potential equity dilution from these options is minimal.