- VIP Industries reported a consolidated net loss of Rs 53.6 crore in Q1 FY27, wider than last year
- Revenue rose 3% YoY to Rs 578 crore, marking first growth in seven quarters
- Company posted an EBITDA loss of Rs 11.2 crore versus Rs 24.7 crore profit last year
VIP Industries reported a wider consolidated net loss of Rs 53.6 crore for the first quarter of fiscal 2027, compared with a loss of Rs 13.1 crore in the year-ago period, as higher raw material costs weighed on profitability. Revenue from operations increased 3% year-on-year to Rs 578 crore from Rs 561 crore. On a sequential basis, revenue grew 33%, marking the company's first year-on-year revenue growth in seven quarters.
However, the improvement in revenue did not translate into operating profitability. The company reported an Ebitda loss of Rs 11.2 crore in quarter ended June, compared with an Ebitda profit of Rs 24.7 crore in the corresponding quarter last year.
VIP Industries said its profitability was impacted by inflation in raw material costs resulting from the rise in crude prices. The pressure on operating margins came despite the company returning to year-on-year revenue growth and recording a strong sequential recovery.
The company, however, expects growth to accelerate in the second quarter and has guided for higher growth in Q2.
As part of its transformation programme, VIP Industries has launched more than 80 new products, which currently contribute around 50% of revenue.
ALSO READ: Tata Motors CV Q1 Results: Profit Rises 8%, Revenue Tops Rs 19,300 Crore
The company said it has completed the first phase of its transformation, with several of the operational and strategic issues that had weighed on the business in the past now largely addressed.
The transformation has included inventory optimisation across the company and its channel network, resetting brand and pricing guardrails, strengthening the leadership team and re-energising its channel ecosystem.
Atul Jain, Managing Director and CEO of VIP Industries, said the company has completed the first phase of its transformation and is now building momentum for the next phase of growth.
"We optimized inventory across the company and channel network, reset brand and pricing guardrails, onboarded a strong leadership team, and re-energized our channel ecosystem. With the problems of the past largely behind us, VIP is building momentum for its next phase of growth," Jain said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.