Vaibhav Global Q1 FY27 Results (NSE: VAIBHAVGBL)
Signal: Margin expansion
The read
Consolidated PAT grew 49.8% YoY despite only 12.7% revenue growth, powered by a 410bps gross margin expansion partly from a one-off tariff refund (₹25.6 Cr). Excluding the refund, EBITDA margin still expanded ~100bps on operating leverage. UK operations remain a drag but are improving. The tariff refund (cash inflow of ₹39.9 Cr including interest) is a positive, but ongoing US tariff litigation creates uncertainty.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹917.07 Cr | 12.7% | -1.9% |
| EBIT | ₹75.42 Cr | 52.9% | |
| Net profit | ₹56.38 Cr | 49.8% | |
| EPS | ₹3.37 | 49.1% | |
| EBIT margin | 11.1% |
P&L walk
Revenue growth of 12.7% YoY was led by US (+20.9%), with gross margin expanding 410bps YoY to 70.1% partly due to a one-off tariff refund (₹25.6 Cr) recorded as other operating revenue and inventory reduction. EBITDA margin rose 193bps to 11.1% as employee cost grew only +2.6% (operating leverage). PAT jumped 49.8% YoY. QoQ, revenue dipped 1.9% (seasonal) and PAT fell 38.1% due to higher base.
Segments
US segment drove consolidated results with 20.9% revenue growth and 72.8% profit surge; UK segment slipped to a marginal loss but improved sequentially from Q4FY26; India segment profit grew 51% YoY.
Key positives
- US segment revenue +20.9% YoY, profit +72.8% — core growth engine.
- Consolidated EBITDA margin expanded 193bps YoY to 11.1%, third consecutive quarter of margin expansion (Q2-Q3-Q4FY26 also expanded).
- PAT growth +49.8% YoY, EPS +49.1% — strong bottom-line delivery.
- Tariff refund of ₹39.9 Cr (including interest) received as cash, strengthening balance sheet.
Key concerns
- UK segment reported marginal loss of ₹0.47 Cr vs profit of ₹9.78 Cr last year, though sequential improvement from Q4FY26 loss of ₹22.56 Cr.
- QoQ revenue declined 1.9%, indicating possible demand moderation.
- Gross margin expansion of 410bps partly driven by one-off tariff refund; normalised margin likely lower.
- Contingent liability from ongoing US Section 122 tariff litigation (₹14.26 Cr paid, refund uncertain).
Research and educational content only. Not investment advice.