VIP Industries Ltd. share price target

VIP reported very poor Q2FY26 results, significantly missing our expectations. We believe the disappointing performance is primarily driven by the change in ownership and ongoing management transition. Revenue declined 25% YoY to Rs4.1bn, with gross margins contracting from 45.1% to 30.6% in Q2FY26, indicating a sharp clean-up of the books. Consequently, EBITDA loss widened to Rs1bn, despite a reduction in employee cost and other overheads. Adj. net loss increase to Rs1.4bn, compared to Rs366mn in Q2FY25, primarily due to higher depreciation costs (12% YoY), partially offset by lower finance cost and a significant increase in...

With a 4% upside from the CMP, we maintain our HOLD rating on the stock.

VIP reported very poor Q2FY26 results, significantly missing our expectations. We believe the disappointing performance is primarily driven by the change in ownership and ongoing management transition. Revenue declined 25% YoY to Rs4.1bn, with gross margins contracting from 45.1% to 30.6% in Q2FY26, indicating a sharp clean-up of the books. Consequently, EBITDA loss widened to Rs1bn, despite a reduction in employee cost and other overheads. Adj. net loss increase to Rs1.4bn, compared to Rs366mn in Q2FY25, primarily due to higher depreciation costs (12% YoY), partially offset by lower finance cost and a significant increase in...

VIP Industries’ 2QFY26 print was below our estimates. Consolidated revenue declined 25.3% YoY and the company reported losses at the EBITDA/PAT level.

VIP's Q1FY26 performance was below our expectations on all fronts. Revenue declined 12% YoY to Rs5.6bn, due to 8% YoY drop in volumes and 4% YoY decrease in NSR. This is due to sudden drop in secondary sales in E-com and intense price competition. Gross margin expanded by 69bps YoY to 45.0%. Despite this, EBITDA margins contracted 330bps YoY to 4.4%, dragged by inventory provision of Rs 150mn for slow moving SL. Adj. net loss stood at Rs150mn. Management refrained from articulating a forward strategy, citing the ongoing promoter-level exchange control situation as a limiting factor during this transition phase. We cut our FY26...

With a 9% upside from the CMP, we maintain our HOLD rating on the stock

the cost reset cycle evident in the last quarter. Barring e-com spends, the remaining costs are transitory in nature, and we expect other expenses to decline from 31.5% of sales in FY25 to 27.1% in FY26E and further to 26.1% in...

With a 1% downside from the CMP, we maintain our HOLD rating on the stock.

With a 7% downside from the CMP, we maintain our HOLD rating on the stock

With a 9% upside potential from the CMP, we maintain our HOLD rating on the stock.

We maintain our HOLD rating on the stock with a revised Target Price of Rs. 570/share, implying an 8% upside from the Current Market Price

Relaunch strategy to pay dividends

We maintain our HOLD rating on the stock as we roll forward our estimates to FY26E numbers with a revised target price of 590/share implying a 9% upside from CMP.

The company has revised its target gross margins at 53-55% for FY24 as it expects demand to pick up from Q3FY24.