V-Guard’s Q4 margin rebounds, but stock falls 3.28%
Revenue grew 14.12% year on year as expenses rose 13.59%, while operating margin remained 5.08 percentage points below the sector median.
Filed 12 May 2026, 14:23 IST · V-Guard Industries Ltd (VGUARD)
Key takeaways
- Consolidated revenue grew 14.12% year on year, while operating profit rose faster at 19.34% as expenses grew 13.59%.
- Operating margin improved 0.43 percentage points to 9.73% year on year but remained 5.08 percentage points below the Consumer Discretionary peer median.
- The stock fell 3.28% on results day, an unusually weak reaction against its 0.99% median absolute move after the previous eight results.
Price around the results
Second-half recovery lifted Q4 growth
V-Guard’s consolidated Q4 revenue growth accelerated to 14.12% year on year, and operating profit grew 19.34% because expenses rose more slowly than revenue at 13.59%. Sequentially, revenue increased 25.06% and operating profit 38.58%, reflecting the stronger second half after a weaker first half. Management said demand revived in the second half and that better execution helped deliver double-digit growth despite inflationary pressure.
Margin improved, but tax helped the sequential profit gain
Operating margin expanded 0.43 percentage points year on year and 0.95 percentage points sequentially as cost growth stayed below revenue growth. Other income contributed 5.17% of pre-tax profit, so it was not a major driver of earnings quality; interest expense nevertheless rose 18.04% year on year. The sequential net profit increase also benefited from a 2.36 percentage-point fall in the tax rate, while the year-on-year tax rate rose 0.93 percentage points.
Margin recovered from the FY26 trough but trails peers
Operating margin rose from 8.15% in Q2FY26 and 8.78% in Q3FY26 to 9.73% in Q4FY26, reversing the decline seen through the first half. Among 93 Consumer Discretionary peers that had reported, V-Guard’s margin was 5.08 percentage points below the 14.81% median and ranked 22nd from the bottom.
Management flags summer demand and Sunflame execution
Management said FY26 was difficult because the first half saw a weak summer and tepid demand, while the presentation cited commodity inflation and supply disruptions linked to the West Asia crisis. The company told analysts that Sunflame integration is complete, stabilization is under way and actions taken are generating growth traction; management also said it saw signs of a supportive summer and was hopeful of a strong start to FY27.
Results-day fall was larger than V-Guard’s usual reaction
The stock fell 3.28% on the results date and was down 5.81% after five sessions, underperforming the market by 4.98% over that period. This was weaker than its recent pattern: five of the previous eight results reactions were negative, but the median absolute move was only 0.99%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,755 cr | ₹1,404 cr | +25.06% | +14.12% |
| Other income | ₹8 cr | ₹-16 cr | — | +69.11% |
| Expenses | ₹1,585 cr | ₹1,280 cr | +23.76% | +13.59% |
| Operating profit | ₹171 cr | ₹123 cr | +38.58% | +19.34% |
| Operating margin (%) | 9.73% | 8.78% | — | — |
| Interest | ₹3 cr | ₹3 cr | +1.35% | +18.04% |
| Depreciation | ₹28 cr | ₹27 cr | +5.96% | +4.93% |
| Profit before tax | ₹147 cr | ₹77 cr | +90.40% | +24.53% |
| Tax | ₹35 cr | ₹20 cr | +73.20% | +29.53% |
| Net profit | ₹112 cr | ₹57 cr | +96.51% | +23.04% |
| EPS (₹) | ₹2.56 | ₹1.30 | +96.92% | +23.08% |
Operating margin of 9.73% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.28% | -1.45% |
| Next session | -2.09% | — |
| 5 sessions | -5.81% | -4.98% |
| 15 sessions | -9.47% | — |
| 30 sessions | -5.60% | — |
Volume on the results session was 6.34× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The business performed well in the second half, with some demand revival and better execution.
Guidance & outlook
- The company sees indications of a supportive summer and is hopeful of a strong start to FY27.
New initiatives
- Sunflame business integration is complete, with stabilization in progress and growth traction from actions taken.
Problems & risks
- FY26 was challenging because the first half experienced weak summer and tepid demand.
- The West Asia crisis is causing commodity inflation in some categories and supply disruptions for certain materials and components.
What to watch
- Whether operating margin holds above the Q4FY26 level of 9.73%.
- Whether revenue growth remains above the Q4FY26 year-on-year pace of 14.12% as Sunflame stabilization continues.
- Whether the tax rate stays close to 23.84% without becoming a larger driver of sequential profit changes.