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Informist, Monday, Jul. 28, 2025

By Durva A. Shivalkar

MUMBAI – V-Guard Industries Ltd. is expected to post a steady performance in the June quarter despite challenges from a subdued summer that impacted the demand for seasonal products such as fans and air coolers. The sales of electrical products remained strong and this helped balance the overall performance of the company.

V-Guard Industries is expected to post a net profit of INR 905 million for the June quarter, up almost 11% on year and 16% sequentially, according to the average of estimates of eight brokerages. The highest estimate for the company's net profit is INR 1 billion by Anand Rathi Share and Stock Brokers Ltd. while the lowest estimate is INR 795 million by Nirmal Bang Equities Pvt. Ltd. and Centrum Broking Ltd.

The company is expected to post revenues of INR 15.4 billion, up 9% on year and 4% sequentially, according to the average of eight estimates. The highest estimate for the company's net sales is INR 16.81 billion by JM Financial Institutional Securities Pvt. Ltd. while the lowest estimate of INR 14.2 billion is by Centrum Broking Ltd.

"V-Guard is confident of sustaining mid-teens revenue growth over the next five years driven by a mix of fast growing new categories and steady momentum in core segments," Nirmal Bang said. "VGRD (V-Guard) views its shift from outsourcing to owned manufacturing as a strategic necessity to meet the rising consumer expectations and to remain competitive in a consolidating market."

Sales in the electronics and consumer durables segments are likely to decline 11% on year and 5%, respectively, due to lower sales of air conditioners, stabilisers, and fans, YES Securities (India) Ltd. said. Electricals are expected to grow because retailers are stocking up on wires used in houses, expecting higher demand in the future. "EMS (Electronic Manufacturing Services) players may outperform branded peers due to diversified portfolios and increasing outsourcing trends," Anand Rathi said.

V-Guard is expected to report an earnings before interest, tax, depreciation, and amortisation of INR 1.42 billion for the June quarter, down 8.5% on year and down marginally on quarter, according to the average of estimates from six brokerages. The highest estimate is INR 1.54 billion by JM Financial whereas the lowest EBITDA estimate is INR 1.27 billion by Centrum Broking Ltd. The company aims to sustain its 10% EBITDA margin and has said going beyond this is difficult due to the ongoing investments in new channels and innovations, according to Nirmal Bang.

Nirmal Bang expects 13% on-year revenue growth for the wires and cable segment. Wires are expected to post high-teens revenue growth, aided by trade channel up-stocking amid rising copper prices, while cables could see largely volume-led growth of over 20%, with 1-2% realisation gains. "V-Guard is confident of sustaining mid-teens revenue growth over the next five years driven by a mix of fast growing new categories and steady momentum in core segments," the brokerage said.

On Monday, shares of V-Guard Industries closed at INR 387.05 on the National Stock Exchange, down 3.7%. The shares are up almost 3% since the announcement of the March quarter earnings on May 14.

Of the 16 brokerage ratings on the company available with Informist, 14 have a 'buy' recommendation with an average target price of INR 441 and two have a 'hold' recommendation on the stock. The company will announce its June quarter earnings Tuesday.

Following are the June quarter earnings estimates for V-Guard Industries Ltd., based on reports from eight brokerages in descending order of estimate of net profit:

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Edited by Tanima Banerjee

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