India's V-Guard misses profit estimates as weak summer hits cooling product demand

V Guard Industries

29/07/2025 10:02

July 29 (Reuters) - V-Guard Industries VGUA.NS 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 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
V Guard Industries
VGUA.NS
38.43
25.96
13.34
22.57
Buy
17
0.90
0.39
Havells India
HVEL.NS
52.50
34.04
3.81
10.98
15.30
Buy
27
0.88
0.66
Crompton Greaves Consumer Electricals
CROP.NS
31.09
20.04
2.38
10.70
17.48
Buy
31
0.76
0.91
Polycab India
POLC.NS
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

V Guard Stock Performance https://tmsnrt.rs/4m9TSmm

 (Reporting by Ananta Agarwal in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)

 ((Ananta.agarwal@thomsonreuters.com;))