Vaibhav Global FY26: Q4 PAT jumps 167%, FCF ₹272cr

Key takeaway from Q4 and FY26

Vaibhav Global ended FY26 with a sharp improvement in profitability and cash generation, as earlier investments began reflecting in reported numbers. The company reported double-digit EBITDA margins in Q4 FY26, while profit before tax rose strongly year on year. Management also highlighted that the in-house brand mix crossed the 50% mark in B2C sales nearly a year ahead of its earlier target. Germany turned EBITDA positive for the full year, and FY26 free cash flow was the highest ever for the company.

Q4 FY26 results: revenue up 10% YoY

For the quarter ended 31 March 2026, consolidated revenue from operations rose 9.99% year on year to ₹934.71 crore, which management rounded off to ₹935 crore. The company said Q4 revenue grew 10% YoY. The quarter’s performance came amid a market backdrop where management noted that the US retail landscape continues shifting toward digital-first customer discovery, with paid social media becoming a key channel for acquisition and engagement.

Profitability: EBITDA returns to double digits

In Q4 FY26, EBITDA was reported at ₹96.3 crore (also cited as ₹96 crore), translating into an EBITDA margin of around 10% (also cited as 10.3%). The managing director said EBITDA increased 36.0% YoY and that margins returned to double digits after three years. Gross margin for the quarter improved to 63.9%, supported by a favourable product mix, higher contribution from in-house brands, and efficiency initiatives across the organisation.

PBT and PAT: sharp year-on-year improvement

Profit before tax (PBT) in Q4 FY26 came in at ₹63.74 crore (also stated as ₹64 crore). One management commentary described PBT growth at 41% YoY, while the results note PBT climbed 54.48% YoY compared to Q4 FY25. Consolidated net profit surged 167.42% YoY to ₹91.14 crore in Q4 FY26 from ₹34.08 crore in Q4 FY25, underscoring a much stronger bottom-line delivery than the prior year.

FY26 performance: revenue ₹3,691.79 crore, margin expansion

For the full financial year FY26, consolidated revenue from operations rose 9.28% year on year to ₹3,691.79 crore (also stated as ₹3,691 crore). Management said FY26 EBITDA margin expanded by 140 basis points to 10.8%. Gross margin was described as healthy through the year, supported by the company’s vertically integrated sourcing model. Management also said FY26 has been a year where investments made over the last few years started reflecting in operating numbers.

Full-year profit and return ratios

For FY26, consolidated net profit increased 73.53% to ₹266.13 crore. Management also reported a stronger balance-sheet position and improving return ratios. As of 31 March 2026, net cash stood at ₹296 crore. ROCE improved to 24% and ROE to 15%, reflecting better profitability and disciplined capital allocation.

Cash flows: record free cash flow in FY26

The company said the business remained strongly cash generative. Operating cash flow for FY26 was ₹305 crore and free cash flow was ₹272 crore, described as its highest ever free cash flow generation in a year. Management linked part of this improvement to operating leverage during the year.

Mix shift: in-house brands and digital contribution

A key operational highlight in Q4 FY26 was the mix shift toward in-house brands. The company said in-house brands contributed about 53% of the B2C revenue mix during the quarter, enabling it to achieve its FY27 target of 50%+ in-house brand contribution well ahead of schedule. Management separately said in-house brand contribution drove nearly 50% of B2C sales almost a year ahead of the earlier target. Digital momentum continued, with digital revenue mix increasing to 44% during the quarter.

Geography update: US, UK and Germany trends

On geographies in Q4 FY26, management said the US grew 1% year on year and Germany grew 7%, while the UK grew 1% in local currency terms. This resulted in total growth of 3% YoY in US dollar terms. Management also noted that Germany turned EBITDA positive for the full year.

Dividend announced for FY26

Vaibhav Global’s board recommended a final dividend of ₹1.50 per equity share of face value ₹2 each for FY26. The dividend is subject to shareholders’ approval at the ensuing annual general meeting (AGM).

How results compared with Street expectations

The note also cited analyst previews from brokerages such as MOFSL, YES Securities and JM Financial. Estimates for Q4 FY26 revenue were in the ₹1,150 crore to ₹1,250 crore range, with PAT expectations of ₹30 crore to ₹40 crore and margin projections of 3% to 3.5%. Against this backdrop, the reported Q4 net profit of ₹91.14 crore and EBITDA margin of around 10% reflected a materially stronger profitability outcome than those cited expectations.

Snapshot table: Q4 FY26 and FY26 highlights

Why the FY26 print matters

The FY26 numbers show a clear combination of margin recovery and balance-sheet strength. EBITDA margin expansion to 10.8% for the full year, coupled with record free cash flow of ₹272 crore, indicates tighter working capital control and better operating leverage as scale builds. The company’s commentary on vertically integrated sourcing and product mix, along with gross margin at 63.9% in Q4, suggests the margin improvement was not driven by a single one-off lever.

The mix shift toward in-house brands is also important because it can influence both margin structure and customer proposition. With in-house brands contributing about 53% of B2C revenue mix in Q4, the company said it achieved its FY27 target early, which becomes a measurable operational milestone rather than a forward aspiration. In geographies, management’s disclosure of Germany turning EBITDA positive for the full year adds context to the margin trajectory across the group.

Conclusion

Vaibhav Global’s Q4 FY26 results showed a 10% YoY revenue rise to about ₹935 crore, a return to double-digit EBITDA margins, and a 167% surge in net profit to ₹91.14 crore. For FY26, revenue reached ₹3,691.79 crore, net profit rose to ₹266.13 crore, and free cash flow hit a record ₹272 crore, with net cash at ₹296 crore as of 31 March 2026. The next formal milestone for shareholders is the AGM, where the proposed final dividend of ₹1.50 per share for FY26 will be put up for approval.