India's V-Guard misses profit estimates as weak summer hits cooling product demand
The company reported a net profit of 738.5 million rupees ($8.5 million) for the quarter ended June 30, compared with 989.7 million rupees a year earlier. Analysts, on average, expected a profit of 844 million rupees, according to data compiled by LSEG.
The company's revenue shrank marginally to 14.66 billion rupees from 14.77 billion rupees a year ago, led by a decline in sales in its kitchenware brand, Sunflame, and its consumer durables segment.
V-Guard said that it will enter the lighting business.
Early monsoon showers and a cooler-than-usual summer in south India, one of V-Guard's key markets, resulted in a 16.3% sales decline in the consumer durables portfolio, which comprises air coolers and fans.
"Topline growth for the first quarter of fiscal 2026 was subdued due to a weak summer season," V-Guard said in a press release.
Sales in the company's kitchenware business also declined, reflecting ongoing pressure in its distribution network. V-Guard is facing issues with sales channels that cater to armed and government personnel.
These bulk-buying channels, which typically sell at discounted rates, have stockpiled large inventories and are housing a wider range of brands, V-Guard has said.
PEER COMPARISON
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 86.8350 Indian rupees
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