(Reuters) -V-Guard Industries missed quarterly profit estimates on Tuesday, as sales in the cooling and kitchenware segments declined from a year earlier.
The company reported a net profit of 738.5 million rupees ($8.5 million) for the quarter ended June 30, compared with 989.7 million rupees a year earlier. Analysts, on average, expected a profit of 844 million rupees, according to data compiled by LSEG.
The company’s revenue shrank marginally to 14.66 billion rupees from 14.77 billion rupees a year ago, led by a decline in sales in its kitchenware brand, Sunflame, and its consumer durables segment.
V-Guard said that it will enter the lighting business.
KEY CONTEXT
Early monsoon showers and a cooler-than-usual summer in south India, one of V-Guard’s key markets, resulted in a 16.3% sales decline in the consumer durables portfolio, which comprises air coolers and fans.
“Topline growth for the first quarter of fiscal 2026 was subdued due to a weak summer season,” V-Guard said in a press release.
Sales in the company’s kitchenware business also declined, reflecting ongoing pressure in its distribution network. V-Guard is facing issues with sales channels that cater to armed and government personnel.
These bulk-buying channels, which typically sell at discounted rates, have stockpiled large inventories and are housing a wider range of brands, V-Guard has said.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth rating* analyst price yield
(%) s target** (%)
V Guard Industries 38.43 25.96 13.34 22.57 Buy 17 0.90 0.39
Havells India 52.50 34.04 3.81 10.98 15.30 Buy 27 0.88 0.66
Crompton Greaves 31.09 20.04 2.38 10.70 17.48 Buy 31 0.76 0.91
Consumer
Electricals
Polycab India 39.73 27.06 3.16 18.66 21.29 Buy 29 0.92 0.51
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.8350 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
