V-MARC raises FY27 revenue-growth guidance to 60%+ after Q2

V-MARC India Limited raised its FY27 revenue-growth guidance to 60%+ from 40%+ after Q2 FY27 revenue rose 72.6% year on year to Rs 719.85 crore, while H1 FY27 revenue reached Rs 1,275.36 crore, or 44% of the full-year revenue implied by the revised target.

Why did V-MARC raise its FY27 revenue-growth guidance?

V-MARC raised FY27 revenue-growth guidance to 60%+ from 40%+ because H1 FY27 consolidated revenue increased 84.4% year on year to Rs 1,275.36 crore. Management said this first-half outcome was ahead of the plan shared in Q1 FY27, and it retained its FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) margin guidance of 11-12%.

Management said H1 FY27 revenue represented 44% of the Rs 2,875.70 crore full-year revenue level implied by the revised growth guidance. The presentation does not provide quarterly revenue targets for the remaining half, but management based the upgrade on H1 delivery and stated that demand from power transmission, renewables and housing remained strong.

V-MARC reported that India added 24.6 gigawatts of renewable capacity in H1 FY27, which management cited in its outlook. The company has three manufacturing facilities, H1 FY27 production capacity of 260,000 kilometres and operations across 25 states and union territories. Capacity was 22% above the 212,600 kilometres reported for FY26.

How did V-MARC perform in Q2 FY27?

V-MARC recorded Q2 FY27 consolidated revenue of Rs 719.85 crore, up 29.6% quarter on quarter from Rs 555.51 crore and 72.6% year on year from Rs 417.11 crore. Management described Q2 as its strongest quarter yet, with high-tension (HT) cables and exports driving the sequential revenue increase.

Profit growth exceeded revenue growth in the quarter. EBITDA rose 77.5% year on year to Rs 87.89 crore, while profit after tax (PAT) increased 79.7% to Rs 47.91 crore. Q2 EBITDA margin was 12.2%, compared with 10.7% in Q1 FY27 and 11.9% in Q2 FY26; PAT margin was 6.7%, compared with 5.1% and 6.4%, respectively.

Gross margin recovered to 22.5% in Q2 FY27 from 19.6% in Q1 FY27, and was 30 basis points above 22.2% a year earlier. A basis point is one-hundredth of a percentage point. Q2 gross profit rose 74.9% year on year to Rs 162.09 crore, while cost of goods sold rose 71.9% to Rs 557.76 crore.

Which products and customers drove V-MARC's first-half growth?

V-MARC's H1 FY27 growth was led by building wires and industrial cables, which rose 180.6% year on year to Rs 485.40 crore, and by exports, which increased to Rs 181.40 crore from Rs 1.36 crore. The presentation notes that exports began in FY26, so the 132.3-times year-on-year comparison starts from a small base.

HT cable revenue increased 62.4% to Rs 585.30 crore in H1 FY27, making it V-MARC's largest product category at 46% of standalone revenue. Building wires and industrial cables represented 38%, while low-tension (LT) cables accounted for 16%. LT cable revenue increased 29.3% to Rs 204.60 crore, slower than the other two categories.

Government business, classified as business-to-government (B2G), rose 86.9% to Rs 453.60 crore, while business-to-business engineering, procurement and construction (B2B EPC) revenue grew 75.5% to Rs 432.60 crore. Dealer-facing business-to-consumer (B2C) revenue was Rs 207.70 crore, only 3.0% above H1 FY26. Management identified B2C, which represented 16.3% of the H1 customer mix, as a focus area.

What do V-MARC's margins, spending and cash flow show?

V-MARC maintained H1 FY27 EBITDA margin at 11.6%, virtually unchanged from 11.6% in H1 FY26 and within management's 11-12% FY27 band. EBITDA increased 84.3% to Rs 147.33 crore, broadly in line with the 84.4% rise in revenue. H1 PAT grew 103.8% to Rs 76.43 crore and PAT margin expanded 57 basis points to 6.0%.

First-half gross margin, however, declined 132 basis points year on year to 21.2% from 22.6%. V-MARC attributed the H1 outcome to a Q1 FY27 gross margin of 19.6%, followed by the Q2 recovery to 22.5%. Finance cost rose 64.6% year on year to Rs 30.16 crore, although management said lower finance cost as a share of revenue supported the increase in PAT margin.

V-MARC spent Rs 106.40 crore on capital expenditure in H1 FY27, while cash flow from operations was negative Rs 45.67 crore. The company said higher volumes increased working-capital needs: inventory rose Rs 222.70 crore and receivables rose Rs 124.90 crore since March 2026, partly offset by a Rs 192.50 crore increase in payables. Net borrowings raised were Rs 146.20 crore, and closing cash was Rs 1.49 crore.

Inventory days increased to 70 in H1 FY27 from 54 in FY26, while debtor days fell to 78 from 85 and payable days increased to 89 from 88. Management said tightening cash conversion is a priority for H2 FY27. Debt-to-equity was 0.99 times in September 2026, compared with 0.74 times in FY26; the presentation specifies that debt excludes leases.

Conclusion

V-MARC's guidance upgrade follows an H1 FY27 in which consolidated revenue rose 84.4%, EBITDA rose 84.3% and PAT rose 103.8%. Q2 delivered higher gross, EBITDA and PAT margins than Q1, while segment data show that HT cables, building wires and industrial cables, B2G customers and exports made the largest contributions to growth.

The next issue is whether V-MARC can convert its revised 60%+ FY27 revenue ambition while maintaining the 11-12% EBITDA-margin range. Management has identified H2 cash conversion as a priority after inventory reached 70 days, and has also flagged B2C revenue, which rose only 3.0% in H1 FY27, as an area of focus.