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
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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.
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Sales Volume: 4.55 million units, an 8% drop YoY—the first volume de-growth in five quarters.
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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.
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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.
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Gross Margin: 45% (normalized: 48% without provisions).
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Earnings Per Share (EPS): –₹0.92, down from ₹0.30 in Q1 FY25.
Key Operational and Segmental Highlights
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Hard Luggage Category: Share grew to 63% (from 56% YoY), showing consumer pivot to more durable products.
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Channel Mix:
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General Trade – 26%
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Modern Trade – 26%
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E-commerce – 19%
(With notable resilience in general trade against softer e-commerce trends).
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Bangladesh Operations: Reported a profit of ₹8 crore versus a ₹11 crore loss YoY, showing operational improvement.
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Exceptional items:
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Fire loss at Guwahati warehouse: –₹5.07 crore
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Insurance claim income (Bangladesh): ₹7 crore
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Net exceptional gain: ₹1.93 crore.
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Management Commentary & Strategic Highlights
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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.
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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.
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Capacity utilization and operational efficiency initiatives are expected to offset lost volume and margin headwinds as the travel sector recovers.
Q4 FY25 Earnings Results
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Revenue: ₹494 Crore, down by 4.2% on the YoY basis.
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Net Loss (PAT): ₹27 crore, a decline of 12.5% as compared to the same quarter previous year.
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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.