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V-Guard Industries Q2 FY27 Earnings Presentation
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Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. V-Guard Industries Limited (V-Guard) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2
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Table of Contents 3 CMD’s Message 04 Key Highlights 05 Financial Highlights 06-10 Segment-wise/Geographical Breakup of Revenues 11-13 Annexure 14-16
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Chairman & Managing Director’s Message Commenting on the performance for Q2 FY27, Mr. Mithun Chittilappilly, Chairman & Managing Director – V-Guard Industries Limited said, “The business delivered another quarter of robust and consistent performance with all segments delivering strong growth which was a combination of both price and healthy volume growth for most of the categories. The growth was driven by inherent resilience of the business, right focus and supportive market conditions. In Q2 FY27, Consolidated Net Revenue from operations stood at ₹1,853 crore, higher by 38.2% YoY while Profit after Tax was ₹112 crore, higher by 71% YoY. For the half year, Consolidated Net Revenue from operations stood at ₹3,664 crore, higher by 30.5% YoY while Profit after Tax was ₹242 crore, higher by 74% YoY. While all segments delivered strong growth, the Electronics segment reported particularly high growth aided by Solar Products as well as Digital Inverter & Battery. The Electricals segment witnessed both volume growth and higher price realisations driven by commodity price inflation, while Consumer Durables reported growth in revenues along with an improvement in profitability. On the back of functional integration of Sunflame, our initiatives to further strengthen product portfolio and improve market presence are beginning to yield results. Gross margin moderated during the quarter, due to both product mix and continued input cost inflation. Pricing actions are being undertaken to mitigate these pressures. We expect some recovery in margins as these pricing actions take effect, supported by our ongoing initiatives around cost optimisation and increasing the share of in-house manufacturing. We continue to monitor the geo-political situation and will take appropriate actions necessary to protect supplies and margins. We are hopeful to deliver healthy growth in the upcoming quarters.” 4 Based on Consolidated Financials
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Key Highlights – Q2 FY27 Revenue increased by 38.2% YoY in Q2 FY27 • Q2 FY27 revenue increased by 38.2% YoY to Rs. 1,852.89 crore • South markets witnessed a YoY growth of 51% whereas Non-South markets grew by 23.2% in Q2 FY27 • Non-South markets contributed to 41% of total revenues in Q2 FY27 as compared to 46% in Q2 FY26 5 • CFO generation for H1 FY27 at Rs. 458.35 crore compared to Rs. 195.08 crore for H1 FY26 • ROE and Core ROCE (excl. cash) at 16% and 23.4%, respectively over the last 12 months • Net cash as on 30th September 2026 is Rs. 530.44 crore, as against net cash on 30th September 2025 of Rs. 92.78 crore EBITDA performance and PAT • Gross margin at 34.3%, a decrease of 325 bps YoY as compared to 37.6% in Q2 FY26 • Ad/promotional spends, at 2.3% of revenues in Q2 FY27 as compared to 2.9% in Q2 FY26 • EBITDA at Rs. 167.93 crore in Q2 FY27 grew 53.7% YoY, as compared to Rs. 109.26 crore in Q2 FY26 • EBITDA margin for Q2 FY27 is 9.1% as compared to 8.1% in Q2 FY26 • Q2 FY27 PAT increased 71% YoY to Rs. 111.67 crore Robust cash flow generation and balance sheet 5 Based on Consolidated Financials
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P&L Snapshot (including Sunflame) 6 Based on Consolidated Financials P&L Statement Q2 FY27 Q2 FY26 Change Q1 FY27 H1 FY27 H1 FY26 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue (NR) 1,852.89 1,340.92 38.2% 1,810.65 3,663.54 2,807.00 30.5% COGS 1,216.87 837.10 45.4% 1,142.82 2,359.69 1,762.51 33.9% Gross Margin 34.3% 37.6% -3.3% 36.9% 35.6% 37.2% -1.6% EBITDA (excluding other income) 167.93 109.26 53.7% 190.96 358.89 232.85 54.1% as a % to NR 9.1% 8.1% 1.0% 10.5% 9.8% 8.3% 1.5% Other Income (including finance income) 13.65 4.91 178.0% 11.68 25.33 10.16 149.3% EBITDA including other income 181.58 114.17 59.0% 202.64 384.22 243.01 58.1% as a % to NR 9.8% 8.5% 1.3% 11.2% 10.5% 8.7% 1.8% PBT 149.74 85.08 76.0% 171.87 321.61 183.34 75.4% as a % to NR 8.1% 6.3% 1.8% 9.5% 8.8% 6.5% 2.3% PAT 111.67 65.29 71.0% 130.25 241.92 139.14 73.9% as a % to NR 6.0% 4.9% 1.1% 7.2% 6.6% 5.0% 1.6%
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P&L Snapshot (excluding Sunflame) 7 Based on Consolidated Financials P&L Statement Q2 FY27 Q2 FY26 Change Q1 FY27 H1 FY27 H1 FY26 Change Particulars (Rs. Cr) (Rs. Cr) % (Rs. Cr) (Rs. Cr) (Rs. Cr) % Net Revenue (NR) 1,779.63 1,277.78 39.3% 1,745.28 3,524.91 2,688.35 31.1% COGS 1,171.13 799.90 46.4% 1,101.32 2,272.45 1,692.32 34.3% Gross Margin 34.2% 37.4% -3.2% 36.9% 35.5% 37.0% -1.5% EBITDA (excluding other income) 164.12 105.10 56.2% 188.29 352.41 226.41 55.7% as a % to NR 9.2% 8.2% 1.0% 10.8% 10.0% 8.4% 1.6% Other Income (including finance income) 13.40 4.58 192.6% 11.43 24.83 9.49 161.6% EBITDA including other income 177.52 109.68 61.9% 199.72 377.24 235.90 59.9% as a % to NR 10.0% 8.6% 1.4% 11.4% 10.7% 8.8% 1.9% PBT 147.81 82.54 79.1% 170.91 318.72 180.02 77.0% as a % to NR 8.3% 6.5% 1.8% 9.8% 9.0% 6.7% 2.3% PAT 109.98 60.82 80.8% 129.77 239.75 136.65 75.4% as a % to NR 6.2% 4.8% 1.4% 7.4% 6.8% 5.1% 1.7%
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Financial Highlights (Q2 FY27 vs. Q2 FY26) 8 Key Ratios (%) Q2 FY27 Q2 FY26 Gross Margin 34.3% 37.6% EBITDA Margin (excl. other income) 9.1% 8.1% Profit after Tax 6.0% 4.9% Ad & Promotion Exp./ Net Revenue 2.3% 2.9% Employee Cost/ Net Revenue 8.7% 10.2% Other Expenditure/ Net Revenue 16.6% 19.3% Tax rate 25.4% 23.3% Diluted EPS (Rs.) 2.54 1.48 504 636 Q2 FY26 Q2 FY27 Gross Profit (Rs. crore) 26.2% 1,341 1,853 Q2 FY26 Q2 FY27 Net Revenue (Rs. crore) 38.2% 65 112 Q2 FY26 Q2 FY27 PAT (Rs. crore) 71.0% 109 168 Q2 FY26 Q2 FY27 EBITDA (Rs. crore) 53.7% Based on Consolidated Financials
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Financial Highlights (H1 FY27 vs. H1 FY26) 9 Key Ratios (%) H1 FY27 H1 FY26 Gross Margin 35.6% 37.2% EBITDA Margin (excl. other income) 9.8% 8.3% Profit after Tax 6.6% 5.0% Ad & Promotion Exp./ Net Revenue 2.3% 3.0% Employee Cost/ Net Revenue 8.9% 9.9% Other Expenditure/ Net Revenue 16.9% 19.1% Tax rate 24.8% 24.1% Diluted EPS (Rs.) 5.49 3.16 1,044 1,304 H1 FY26 H1 FY27 Gross Profit (Rs. crore) 24.8% 2,807 3,664 H1 FY26 H1 FY27 Net Revenue (Rs. crore) 30.5% 139 242 H1 FY26 H1 FY27 PAT (Rs. crore) 73.9% 233 359 H1 FY26 H1 FY27 EBITDA (Rs. crore) 54.1% Based on Consolidated Financials
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Financial Highlights – Balance Sheet Perspective 10 Balance Sheet Snapshot (Rs. Cr) 30 September 2026 30 June 2026 30 September 2025 Net Worth 2,563.08 2,509.90 2,190.12 Gross Debt 8.01 7.83 7.49 Current Investments 436.09 575.85 45.19 Cash & Cash Equivalents (inc. bank balance) 102.36 101.56 55.08 Net Cash Position 530.44 669.58 92.78 Fixed Assets 1,327.41 1,307.31 1,225.12 Balance Sheet Snapshot 30 September 2026 30 June 2026 30 September 2025 Debtor (days)* 21 22 28 Inventory (days)* 108 100 102 Creditor (days)* 88 91 62 Working Capital Turnover (days)* 41 31 68 RoE* (%) 16.0% 14.5% 13.3% RoCE* (%) 19.6% 17.8% 16.4% Core RoCE (excl. cash)* (%) 23.4% 22.9% 16.7% 10 Note: *Calculations are on a trailing twelve month basis Based on Consolidated Financials
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Segment-wise Breakup – Q2 FY27 vs. Q2 FY26 11 Electronics – Stabilizers, UPS, Inverters, Solar Products Electricals – Wires, Pumps, Switchgears, Modular Switches, Lighting Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers Sunflame – Products sold under trademark Sunflame and Superflame Segment Revenue Q2 FY27 Contribution (%) Q2 FY26 Contribution (%) YoY growth (Rs. Cr) (Rs. Cr) (%) Electronics 510.24 27.5% 319.07 23.8% 59.9% Electricals 794.25 42.9% 562.62 42.0% 41.2% Consumer Durables 475.22 25.7% 396.09 29.5% 20.0% Sunflame 76.08 4.1% 63.14 4.7% 20.5% Less : Intersegment revenue -2.90 -0.2% - - - Grand Total 1,852.89 100.0% 1,340.92 100.0% 38.2% Segment Result Q2 FY27 Margin (%) Q2 FY26 Margin (%) YoY growth (Rs. Cr) (Rs. Cr) (%) Electronics 81.43 16.0% 54.86 17.2% 48.4% Electricals 84.24 10.6% 65.01 11.6% 29.6% Consumer Durables 22.40 4.7% 6.91 1.7% 224.2% Sunflame 3.57 4.7% 4.13 6.5% -13.6% Grand Total 191.64 10.3% 130.91 9.8% 46.4% Based on Consolidated Financials
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Segment-wise Breakup – H1 FY27 vs. H1 FY26 12 Electronics – Stabilizers, UPS, Inverters Electricals – Wires, Pumps, Switchgears, Modular Switches, Lighting Consumer Durables – Fans, Water Heaters, Kitchen Appliances, Air Coolers Sunflame – Products sold under trademark Sunflame and Superflame Segment Revenue H1 FY27 Contribution (%) H1 FY26 Contribution (%) YoY growth (Rs. Cr) (Rs. Cr) (%) Electronics 1,168.70 31.9% 855.36 30.5% 36.6% Electricals 1,464.37 40.0% 1,087.32 38.7% 34.7% Consumer Durables 891.93 24.3% 745.67 26.6% 19.6% Sunflame 141.77 3.9% 118.65 4.2% 19.5% Less : Intersegment revenue -3.23 -0.1% - - - Grand Total 3,663.54 100.0% 2,807.00 100.0% 30.5% Segment Result H1 FY27 Margin (%) H1 FY26 Margin (%) YoY growth (Rs. Cr) (Rs. Cr) (%) Electronics 212.13 18.2% 159.73 18.7% 32.8% Electricals 154.88 10.6% 112.38 10.3% 37.8% Consumer Durables 37.32 4.2% -0.26 0.0% - Sunflame 6.19 4.4% 6.56 5.5% -5.6% Grand Total 410.52 11.2% 278.41 9.9% 47.5% Based on Consolidated Financials
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Geographical Breakup of Revenues 13 Based on Consolidated Financials Region Q2 FY27 Contribution (%) Q2 FY26 Contribution (%) YoY growth (Rs. Cr) (Rs. Cr) (%) South 1,092.42 59.0% 723.69 54.0% 51.0% Non-South 760.47 41.0% 617.23 46.0% 23.2% Total Revenue 1,852.89 100% 1,340.92 100% 38.2% Region H1 FY27 Contribution (%) H1 FY26 Contribution (%) YoY growth (Rs. Cr) (Rs. Cr) (%) South 2,066.53 56.4% 1,486.61 53.0% 39.0% Non-South 1,597.01 43.6% 1,320.39 47.0% 20.9% Total Revenue 3,663.54 100% 2,807.00 100% 30.5%
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Electronics Product Total Market Size (Rs. Crs.) Indicative Org. Market Size (%) Industry Growth Rate (%) VG Share in Org. Market (%) Other Key Players Stabilizers 1,600-2,000 65-70% 4-6% 40-45% Microtek, Everest, Premier DUPS & Battery 13,000-16,000 65-70% 13-15% 5-7% Exide, Luminous, Microtek Market Overview of V-Guard’s Product Portfolio *Market estimates of VG active product segments only | ** Recent entry/ Growth plan under activation 15 Electricals Product Total Market Size (Rs. Crs.) Indicative Org. Market Size (%) Industry Growth Rate (%) VG Share in Org. Market (%) Other Key Players House Wiring Cables 21,000-25,000 65-70% 9-10% 8-9% Polycab, Finolex, Havells Switchgears* 4,000-4,500 75-80% 8-10% ~ 5% Legrand, Havells, Anchor Modular Switches 7,000-9,000 75-80% 12-14% ** Anchor, Legrand, Havells Pumps* 5,000-6,000 65-70% 7-9% 9-12% Crompton, Kirloskar, Texmo
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Market Overview of V-Guard’s Product Portfolio 16 Appliances Product Total Market Size (Rs. Crs.) Indicative Org. Market Size (%) Industry Growth Rate (%) VG Share in Org. Market (%) Other Key Players Water Heaters 3,000-4,000 80-85% 8-10% 14-16% Bajaj, Havells, Crompton, Racold Electric Fans 12,000-14,000 80-85% 8-10% 5-7% Crompton, Havells, Orient, Usha, Bajaj Solar Water Heaters 800-900 60-65% 5-7% 15-17% Sudarshan Saur, Supreme Solar, Racold Air Coolers 6,500-8,000 35-40% 11-12% ** Symphony, Bajaj, Voltas Kitchen Appliances • Mixer Grinders • Gas Stoves • Water Purifiers • Other Kitchen Appliances# 3,500-5,000 2,500-3,000 6,000-6,500 2,200-2,500 70-75% 60-65% 60-65% 75-80% 9-10% 11-13% 15-18% 10-15% ** 5-7% ** ** Mixer Grinders - Bajaj, Preethi, Butterfly Gas Stoves - Prestige, Butterfly Water Purifiers - Eureka Forbes, Kent RO, HUL Pureit Others - Faber, Bajaj, Havells # Includes Induction Cooktop, Rice Cooker, Sandwich Makers, Toasters, Grills, Kettles, Chimneys, etc. ** Recent entry/ Growth plan under activation
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Mayank Vaswani / Shruti Joshi CDR India Tel: +91 982 094 0953 / +91 750 656 7349 Email: mayank@cdr-india.com / shruti@cdr-india.com Sudarshan Kasturi (CFO) V-Guard Industries Limited Tel: +91 484 300 5601 Email: sudarshan.kasturi@vguard.in For further information, please contact: About V-Guard Industries V-Guard Industries Limited (BSE:532953, NSE: VGUARD) is a Kochi based company, founded in 1977 by Kochouseph Chittilappilly to manufacture and market Voltage stabilizers. The Company has since then established a strong brand name and aggressively diversified to become a multi-product Company catering to the Light Electricals sector manufacturing Voltage stabilizers, Digital UPS systems & Batteries, Pumps, House wiring cables, Switch gears, Modular switches, Electric water heaters, Fans, Solar water heaters, Air coolers and various Kitchen appliances. V-Guard outsources ~ 35% of its product profile while the rest are manufactured in – house while keeping a strong control in designs and quality. It has manufacturing facilities at Coimbatore & Perundurai (Tamil Nadu), Kashipur, Roorkee, Pantnagar & Haridwar (Uttarakhand), Kala Amb (Himachal Pradesh), Hyderabad (Telangana), Faridabad (Haryana), Sikkim and Vapi (Gujarat). V-Guard has been a dominant player in the South market, though the last ten years have also seen the Company expanding rapidly in the non-South geographies with their contribution increasing from 5% of total revenues in FY08 to around 48% of total revenues in FY26. Significant investments continue to be made to expand its outlet coverage in the non-South geographies and become a dominant pan-India player. V-Guard has a diversified client base and an extensive marketing & distribution network. Its client base differs from product to product and includes direct marketing agents, distributors and retailers. The Company today has a strong network of 35 branches which cover ~1,00,000+ channel partners across the country. 17
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