V-Guard Eyes North: Electronics Surge, Non-South Markets Power Growth

V-Guard Industries is entering FY25 with cautious optimism, backed by a solid Q3 performance and a clear focus on expanding beyond its southern stronghold. The company reported an 8.9% year-on-year revenue growth in Q3 FY25, reaching ₹1,268.65 crore. Electronics led the charge with a 27.9% jump, while consumer durables and electricals grew 8.1% and 1.2%, respectively.

 

Geographically, the shift is striking—non-South markets grew 15.8% YoY and now contribute nearly half of total revenues, up from 45.6% a year ago. This diversification is helping V-Guard reduce its dependence on traditional strongholds and tap into underpenetrated regions.

 

Margins held steady despite higher advertising spends, especially for Sunflame, which saw muted growth. Gross margin improved by 250 basis points to 36.2%, though EBITDA margin slipped slightly to 8.2%. PAT rose 3.4% YoY to ₹60.22 crore, reflecting disciplined cost control and working capital management.

 

The company’s net cash position improved significantly, moving from a net debt of ₹145 crore last year to a net cash surplus of ₹27.7 crore. With Sunflame debt repayment on track and strong cash flow generation, V-Guard is well-positioned to fund future growth internally.

 

Looking ahead, the company is betting on a strong summer season, continued traction in electronics, and a rebound in kitchen appliances to drive momentum. Analysts remain upbeat, citing a 15% revenue CAGR and improving return ratios as signs of a steady, if not spectacular, climb.

 

Sources: V-Guard Q3 FY25 Investor Presentation, Trendlyne, Simply Wall St