VIP Industries Q1 FY26 Earnings Results

VIP Industries is engaged interalia, in the business of manufacturing and marketing of luggage, bags and accessories. Presenting below are its Q1 FY26 earnings results.

 

Q1 FY26 Earnings Results

• Revenue: ₹561 crore, down 12% year-over-year (YoY) from ₹640 crore in Q1 FY25. Quarter-on-quarter (QoQ), revenue improved by 8.8% over Q4 FY25.

• Sales Volume: 4.55 million units, an 8% drop YoY—the first volume de-growth in five quarters.

• Net Profit (PAT): Net loss of ₹13.1 crore compared to a profit of ₹4 crore in Q1 FY25, but an improvement from the previous quarter’s loss of ₹23.9 crore.

• EBITDA: ₹31.2 crore (down from ₹50 crore YoY). EBITDA margin: 5.2% (vs 8% YoY); normalized margin 10.2% adjusting for one-time inventory provisions.

• Gross Margin: 45% (normalized: 48% without provisions).

• Earnings Per Share (EPS): –₹0.92, down from ₹0.30 in Q1 FY25.

Key Operational and Segmental Highlights

• Hard Luggage Category: Share grew to 63% (from 56% YoY), showing consumer pivot to more durable products.

• Channel Mix:

  • General Trade – 26%

  • Modern Trade – 26%

  • E-commerce – 19%
    (With notable resilience in general trade against softer e-commerce trends).

• Bangladesh Operations: Reported a profit of ₹8 crore versus a ₹11 crore loss YoY, showing operational improvement.

• Exceptional items:

  • Fire loss at Guwahati warehouse: –₹5.07 crore

  • Insurance claim income (Bangladesh): ₹7 crore

  • Net exceptional gain: ₹1.93 crore.

Management Commentary & Strategic Highlights

• Management attributed the weak quarter mainly to subdued travel demand and market headwinds following regulatory changes and competitive discounting. Inventory rationalisation led to one-off margin impact, but normalization expected in coming quarters.

• The company is focusing on cost control, product mix optimization (leaning into hard luggage), and channel strengthening, particularly in general trade and profitable international markets.

• Capacity utilization and operational efficiency initiatives are expected to offset lost volume and margin headwinds as the travel sector recovers.

 

 

Q4 FY25 Earnings Results

• Revenue: ₹494 Crore, down by 4.2% on the YoY basis.

• Net Loss (PAT): ₹27 crore, a decline of 12.5% as compared to the same quarter previous year.

• EBITDA Margin: Lower than Q1 FY26, reflecting sequential recovery but annual decline.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.