Synopsis: Vaibhav Global shares surged 13.7 percent after reporting strong Q2FY26 results with net profit up 26 percent QoQ and 71 percent YoY to Rs. 48 crore. Operating profit margins improved to 9 percent, while EPS climbed to Rs. 2.85. The company also announced a Rs. 1.50 interim dividend and maintained robust cash reserves.
A consumer discretionary stock rallied sharply after the company announced its September quarter results, which showed robust earnings growth and margin improvement. The market reacted positively to the strong profit performance and healthy operational metrics, pushing the stock significantly higher in today’s trade.
Vaibhav Global Ltd, with a market capitalisation of Rs. 4,566.93 crore, opened at Rs. 258.15 against the previous close of Rs. 257.40 and touched an intraday high of Rs. 292.70, marking a gain of 13.72 percent. The sharp uptick followed the company’s Q2FY26 results, which reflected improved profitability and consistent operational efficiency.
What’s the News?
The company reported a healthy performance in the September quarter, leading to a sharp surge in its share price. On a quarter-on-quarter basis, sales rose from Rs. 814 crore to Rs. 877 crore, an increase of 7.7 percent, while operating profit improved from Rs. 62 crore to Rs. 78 crore, up 25.8 percent. The operating margin expanded from 8 percent to 9 percent. Profit before tax increased from Rs. 46 crore to Rs. 60 crore, higher by 30.4 percent, and net profit advanced from Rs. 38 crore to Rs. 48 crore, a 26.3 percent rise. Earnings per share grew from Rs. 2.26 to Rs. 2.85.
On a year-on-year basis, sales grew from Rs. 796 crore to Rs. 877 crore, an increase of 10.2 percent, while operating profit rose from Rs. 60 crore to Rs. 78 crore, reflecting a 30 percent jump. The operating margin improved from 8 percent to 9 percent. Profit before tax surged from Rs. 39 crore to Rs. 60 crore, up 53.8 percent, and net profit climbed from Rs. 28 crore to Rs. 48 crore, recording a 71.4 percent rise. Earnings per share rose from Rs. 1.67 to Rs. 2.85.
The company also declared a second interim dividend of Rs. 1.50 per equity share, translating to a 53 percent payout. Ace investor Vijay Kedia owns 2.02 percent stake in the company.
Operational Highlights
During Q2FY26, the company maintained strong operational discipline, achieving a gross margin of 63.5 percent, supported by an efficient product mix and pricing strategy. EBITDA margin expanded by 130 basis points to 10 percent, driven by cost control and operating leverage.
The balance sheet remained strong with a net cash position of Rs. 156 crore. Return ratios stood healthy, with ROCE at 20 percent and ROE at 13 percent. Digital channels contributed 42 percent of B2C revenue, while in house brands accounted for 41 percent of gross B2C revenue, up from 31 percent in Q2FY25.
Unique customers (TTM) reached an all time high of 7.14 lakh, up 5 percent year-on-year, while new customer acquisitions stood at 3.8 lakh. The company maintained a 41 percent customer retention rate and recorded 22 repeat purchases per customer (TTM).
Management Commentary
“We are pleased to report a strong quarter with revenue growth exceeding our guidance. Revenue was at Rs. 877 crores, up 10.2 percent YoY. EBITDA margin improved by 130 basis points to 10 percent, up 28 percent in absolute terms. This was driven by productivity gains and operating leverage. Profits after tax rose 71 percent YoY to Rs. 48 crores. Execution remained strong across regions.
With a strong balance sheet, healthy cashflows, and improving profitability, we are well positioned to sustain growth. We maintain our FY26 guidance of 7-9 percent, with potential upside as macro conditions improve and tariff concerns ease.”
About the Company
Vaibhav Global Limited (VGL) is a leading omni-channel e-tailer specializing in fashion jewellery, accessories, and lifestyle products across developed markets. The company reaches approximately 127 million households through its TV home shopping networks, Shop LC in the US, Shop TJC and Ideal World in the UK, and Shop LC in Germany. Its e-commerce platforms, including www.shoplc.com, www.mindfulsouls.com, www.tjc.co.uk, www.idealworld.tv, www.rachelgalley.com, and www.shoplc.de, complement its television presence and enhance customer engagement. Committed to its mission of ‘Delivering Joy,’ VGL continues to expand its global footprint through innovation, customer-centric strategies, and sustainable business practices.
-Manan Gangwar
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