V-Guard Industries Ltd (VGUARD) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the V-Guard Industries Limited Q2 FY '27 earnings conference call hosted by Ashika Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Arshia Khosla with Ashika Institutional Equities. Thank you, and over to you, ma'am.
Arshia Khosla (Ashika Institutional Equities): Yes, thanks, Sagar. On behalf of Ashika Institutional Equities, we welcome you all to Q2 FY '27 results conference call of V-Guard Industries Limited. We have with us today the senior management represented by Mr. Mithun K. Chittilappilly, Managing Director, Mr. Ramachandran V, Director and CEO COO, and Mr. Sudarshan Kasturi, Senior Vice President and CFO. Now I hand over the call to the management for initial comments on the quarterly performance, and then we will open the floor for Q&A session. Thanks, and over to you, Mithun sir.
Mithun K. Chittilappilly (V-Guard Industries Ltd): Yeah. Thank you, Arshia, and team at Ashika for hosting today's call. A very warm welcome to everyone joining to discuss our company's operating and financial performance for the second quarter of FY '27. I trust that all of you have the opportunity to review the inve- we have shared earlier. We are pleased to report another quarter of strong and consistent performance with all business segments achieving strong growth, supported by a combi- action and volume expansion across
Mithun K. Chittilappilly (V-Guard Industries Ltd): most of our product categories. The performance reflects the underlying resilience of our business and brand, focused execution and supportive market conditions. In Q2 FY '27, consolidated net revenue from operations stood at Rs. 1,853 crores, higher by 2% YoY. For the for the half-year, consolidated net revenue from operations stood at Rs. 3,664 crores, higher by 30.5% The electronics segment, comprising of stabilizers, UPS systems, inverters and batteries and solar panel systems, reported particularly strong at 60% YoY in Q2, with all major product categories contributing positively. Solar power products led growth, with digital inverters and battery also contributing very strongly. The electrical segment, which remains our largest revenue contributor and includes wires, pumps, switches, gear, reported a revenue growth of 41.2% YoY in Q2. While the growth in wires was mainly price-driven, there have been healthy volume growth in pumps, switches and switchgears. In the consumer durable segment, covering ceiling fans, water heaters, kitchen appliances and air coolers, we reported a revenue growth of 20% YoY. The momentum in induction cookers continued into this quarter, was accompanied by a healthy demand across broader kitchen appliances portfolio. Fan and water heaters also registered income. Sunflame reported a revenue growth of 20.5% YoY in Q2, building upon the positive momentum witnessed in the first quarter. With the functional integration of Sunflame, our initiatives to strengthen the product portfolio and expand market presence are beginning to translate into improved business Listing actions in CSD entailed longer lead times, which have impacted impacted Sunflame margins. Gross margins stood at 34 in Q2 compared to 37.6% in the corresponding quarter of the last financial year and 36.9% in Q1 FY '27. The moderation was primarily due to higher input cost, along with some impact coming from changes in product mix. We continue to closely monitor input cost movements and remain focused on supply continuity, while taking appropriate measures to protect our margins. EBITDA, excluding other income, for Q2 stood at Rs. 168 crores, reflecting a YoY 3.7%. EBITDA margin was at 9.1% in Q2 this year compared to 8.1% in Q2 of last year. Consolidated PAT for the quarter was 100 up 71% YoY, compared to PAT of Rs. 65 crores in the previous year. We continue to monitor the geopolitical situation and will take appropriate necessary to protect supplies and margins. We are hopeful to deliver a healthy growth in the upcoming quarters as well. With that, I conclude my opening comments. I would like to thank Ashika and the team at Ashika for hosting this call, and would like to request the moderator to open the floor for Q&A. Thank you.
Moderator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press "*" and then "1" on their touchtone phone. If you wish to remove yourself from the question queue, you may press "*" and then "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press "*" and then "1".
Moderator: Yes, sir. So, we will take our first question coming from the line of Rahul Agarwal with Ikigai Asset. Please go ahead.
Rahul Agarwal (Ikigai Asset): Yeah, hi Mithun and team. Congratulations for the good result. Mithun, just wanted to understand on this segment 1 electronics growth, right? Some qualitative on the solar, non-solar revenue for the, how's that being and incrementally, how should we appreciate and think about, you know, the solar overall growth for fiscal 27 and the balanced for inverter UPS growth, you know, for the full year? Some qualitative comments will really help.
Mithun K. Chittilappilly (V-Guard Industries Ltd): So, I think it's not only the solar power system, but also the inverter and battery business. Both of them have grown well. Qualitatively solar is a new category, so they are growing at a much faster pace. It's the category we're seeing. So, we are in the you know, right now we are mainly selling this product in southern markets and we are entering you know, northern market and some of the eastern market soon. So, we are very, you know, bullish on this category. There's a lot of you know, government subsidies and government push to move a lot of the you know, residential energy consumption to solar and it looks like you know, it is the the the whole ecosystem is evolving quite well. Apart from that, the inverter and battery business also did well because we had, you know, power cuts in this current year because of, you know, huge increases in power requirement and power outages in various parts of the country.
Rahul Agarwal (Ikigai Asset): All right. So, you know, like if you have to split out solar and non-solar, is there a base revenue
Mithun K. Chittilappilly (V-Guard Industries Ltd): We won't be giving any We won't be giving any numbers for solar. We won't be giving product-wise.
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