V-Guard Industries Limited — PPTs, 29-07-2025: Investor Presentation

**Financial Highlights:**

V-Guard's Q1 FY26 saw consolidated net revenue decline marginally by 0.7% YoY to Rs. 1,466 Cr, with PAT dropping 25.4% YoY to Rs. 74 Cr. This was primarily due to a weak summer and a high base from the previous year. Gross margin expanded slightly to 36.9%, but EBITDA margin contracted to 8.4%. Electronics (+4.5%) and Electricals (+7.6%) segments grew moderately, while Consumer Durables declined significantly (-16.3%). Non-South markets grew 2.1% YoY, now contributing 52.3% of revenue. The company reported strong CFO generation at Rs. 134.45 Cr and a net cash position of Rs. 155.32 Cr.

**Strategic Initiatives & Growth Drivers:**

V-Guard is focused on stabilizing newly commissioned facilities and advancing pipeline projects to boost in-house manufacturing. Management expects demand to normalize and plans continued investment in brand building and capacity enhancement.

**Business Developments:**

The company has initiated steps to merge Sunflame operations with V-Guard, aiming to accelerate synergy benefits.

**Market Position & Competitive Advantage:**

V-Guard maintains significant market share in products like Stabilizers (40-45%), Water Heaters (14-16%), and Solar Water Heaters (15-17%). The company continues to expand its presence rapidly in non-South geographies, which now contribute over half of total revenues.

**Investor Implications:**

While Q1 results reflect seasonal weakness, the company's focus on operational synergies (Sunflame merger), in-house manufacturing, and non-South market expansion indicates positive growth potential. Robust cash flow and a healthy balance sheet provide stability amidst short-term demand fluctuations.