Vaibhav Global Ltd (BOM:532156) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Vaibhav Global Ltd (BOM:532156) reported a 7.7% year-over-year revenue growth for Q4, reaching INR 850 crores.
The company achieved an 11.1% increase in full-year revenue, totaling INR 3,380 crores.
Gross margins remained robust at 62.1% for Q4 and 63.1% for the full year, supported by a vertically integrated business model.
Digital business contributed 41% to overall sales, with a five-year CAGR of 15%, and is on track to reach 50% by FY27.
The company served 100 million meals through its midday meal program, demonstrating a strong commitment to corporate social responsibility.
The US market experienced subdued retail demand in January due to economic uncertainty and tariff concerns.
The UK retail industry faced challenges with growth held back by economic uncertainty and cautious consumer spending.
Germany operations reported losses, although they are expected to turn profitable in the coming year.
The company anticipates ongoing macroeconomic uncertainties, prompting a cautious revenue growth guidance of 8-12% for FY26.
The digital expansion, while contributing to revenue growth, comes with higher costs and lower repeat purchase rates, impacting overall profitability.
Warning! GuruFocus has detected 2 Warning Signs with BOM:532156.
Q: For FY26, what is the expected content broadcasting budget compared to FY25's INR 650 crore? A: The content broadcasting cost is currently around 18-18.5% of our business. We plan to adjust this budget based on company performance and gross margin improvements. If content broadcasting costs increase by 1%, we expect a corresponding 1% improvement in gross margin. The budget will likely remain between 18-19% for the next financial year. - Unidentified_4
Q: Can you provide insights into Germany's revenue and EBITDA projections for FY26, and the same for Ideal World? A: Germany and Ideal World performed well in the second half of the year, achieving break-even EBITDA. We expect Germany to be slightly profitable in FY26, with Ideal World projected to grow at a 20% rate and achieve a similar EBITDA margin of around 1%. - Unidentified_4
Q: How is the consumer sentiment in the US given the tariff situation, and what are the growth expectations? A: Consumer sentiment remains challenging, but we are seeing mid-single-digit growth for the first 1.5 months of the quarter. Our guidance for the year remains at 8-12% growth, accounting for potential changes in sentiment due to trade agreements. - Unidentified_3
Q: With digital revenue growing, how do you see profitability evolving, considering digital has higher costs and lower repeat rates? A: We have improved profitability timelines for digital customers to 3-6 months from acquisition. Our goal is to reduce this further to 2-3 months across all brands, which will enhance overall profitability. - Unidentified_3
Q: Why was the tax rate lower this quarter compared to previous periods? A: The lower tax rate is due to Germany's operations reaching break-even and lower profitability in the UK. We expect the effective tax rate to stabilize around 22% in the coming quarters. - Unidentified_4
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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