Vaibhav Global Hits Record ₹1066 Cr Revenue, Q3 Profit Surges 41%

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AuthorIshaan Verma|Published at:
Vaibhav Global Hits Record ₹1066 Cr Revenue, Q3 Profit Surges 41%
Overview

Vaibhav Global's Q3 FY26 revenue hit a record INR1,066 cr, a 9.1% YoY growth, surpassing guidance amid geopolitical challenges. PAT soared 41% YoY to INR90 cr, driven by strong margin expansion (EBITDA margin at 13.2%) and operational efficiencies. The company maintained a healthy net cash position of INR213 cr and declared an interim dividend. Future guidance targets 9-11% revenue growth for FY27.

📉 The Financial Deep Dive

Vaibhav Global Limited has reported a robust Q3 FY26 performance, marked by its first-ever quarterly revenue crossing the INR1,000 crore mark, reaching INR1,066 crores. This represents a significant 9.1% year-over-year growth, outperforming company guidance.

The Numbers:

  • Revenue: INR1,066 crores (+9.1% YoY)
  • Gross Margin: 63% (+170 bps YoY)
  • EBITDA Margin: 13.2% (+170 bps YoY)
  • EBITDA: Grew 26% YoY in absolute terms
  • Profit After Tax (PAT): INR90 crores (+41% YoY)
  • EPS: Not explicitly stated, but PAT growth implies improvement.

The Quality:
The company demonstrated strong margin expansion, with both gross and EBITDA margins improving by 170 basis points year-over-year. This was attributed to the strength of its vertically integrated global supply chain, alongside strategic initiatives like in-house jewelry casting manufacturing in the US and operational efficiencies in the UK and Germany. Profit after tax saw a substantial 41% year-over-year jump. Operating cash flow stood at a healthy INR160 crores, and free cash flow at INR143 crores. The company maintained a strong net cash position of INR213 crores, indicating solid financial health. ROCE improved to 21%, and ROE stood at 15%.

The Grill:
During the Q&A, management addressed investor queries regarding the sustainability of Average Selling Price (ASP) increases, particularly driven by lab-grown diamonds (LGD), which contributed 10.7% to retail revenue at an ASP of $250. Discussions also covered cost rationalization efforts in Germany and the UK, the potential benefits of the India-EU Free Trade Agreement for jewelry exports to Germany, and strategies to reduce customer acquisition costs while enhancing customer lifetime value. The company noted the continued investment in OTT channels, observing higher lifetime value compared to linear TV.

🚩 Risks & Outlook

While the overall performance is strong, the UK segment experienced a revenue decline of 1.8% year-over-year, although operational efficiencies led to a substantial EBITDA margin improvement of 240 basis points. The US market showed resilience with 3% growth despite economic headwinds.

For FY27, Vaibhav Global has provided guidance expecting 9% to 11% revenue growth with an EBITDA margin between 10.5% and 11%. This guidance suggests a conservative outlook, with the projected FY27 EBITDA margin being lower than the current Q3 FY26 margin of 13.2%. The company is focused on strategic priorities including expanding reach, customer acquisition/retention, AI implementation, process automation, and developing micro-enterprises. A third interim dividend of INR1.5 per equity share was announced, representing a 28% payout.

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