V.I.P. Industries (VIP IN) – Q1FY27 Result Update – Registers growth after 7 quarters – SELL
Published on 13 Aug 2026
We expect VIP IN to report loss of INR1,871mn/INR69mn in FY27E/FY28E respectively as we fine tune our GM, employee and freight cost assumptions. After 7 quarters, VIP IN’s topline registered a growth of 3.0% YoY to INR5,784mn (PLe INR5,670mn). Margin performance was steady in an inflationary environment with an adjusted GM of 39.3% (PLe 38.5%) for 1QFY27. Backed by new launches and renewed focus on brand building (revamped website, influencer campaigns and outdoor ads), we expect a topline CAGR of 9% over FY26-FY28E. However, the timeline of path to profitability remains uncertain given stiff competition and rise of D2C brands. We expect GM to be at 42.5%/46.0% in FY27E/FY28E respectively and an EBITDA margin of 8.1% in FY28E (anticipate EBITDA loss of INR157mn in FY27E). As the business is undergoing transformation and earnings volatility is likely to remain high due to rising competition and RM inflation, we value the stock at 1.75x FY28E sales (SII IN trades at an EV of 3.0x/2.6x on our FY27E/FY28E sales estimates). Maintain ‘SELL’ on the stock with TP of INR246.
