Vaibhav Global's Q3 FY26: Record Revenue, Digital Drive, and Strategic Growth

Vaibhav Global Limited, a prominent global e-tailer specializing in fashion jewelry, lifestyle products, apparels, and accessories, has announced a robust performance for the third quarter ended December 31, 2025. The company achieved a significant milestone by crossing the INR1,000 crore revenue mark for the first time, reporting consolidated quarterly revenue of INR1,066 crores. This represents a healthy 9.1% year-on-year growth, slightly exceeding the company's guidance. The quarter was characterized by strong gross margins, disciplined cost management, and the strategic benefits of its vertically integrated business model, contributing to a 26% year-on-year increase in EBITDA.

Despite a challenging global macroeconomic environment, Vaibhav Global demonstrated resilience across its operating geographies. In the U.S., revenue grew by 3% year-on-year, even as elevated precious metal prices and cautious consumer sentiment led to deferred discretionary purchases. The company's proactive measure of starting in-house jewelry casting manufacturing operations in the U.S. during the quarter helped mitigate tariff impacts and bolster margins. The U.K. market, however, experienced a 1.8% decline in revenue, primarily due to a 6% negative growth in TJC, which was impacted by subdued consumer confidence and higher metal prices. In contrast, Ideal World, another U.K. entity, delivered strong growth. A notable highlight was the Germany business, which turned profitable in Q3 FY26 with an EBITDA margin of around 6%, supported by sustained growth in live TV commerce. Management expects Germany to contribute to group EBITDA from FY27 onwards, aiming for full-year EBITDA profitability in FY26.

Strategic Pillars Driving Growth

Vaibhav Global's growth strategy is built on four key pillars: expanding reach, new customer registration and acquisition, retention, and repeat purchases. The company's TV networks now reach 127 million households, and its unique customer base stands at 706,000, up 2% year-on-year. Digital platforms are playing an increasingly vital role, contributing 42% to B2C revenue, and the company is well on track to achieve its target of 50% digital contribution by the end of FY27. This digital push is complemented by a strong focus on in-house brands, which accounted for 48% of sales contribution in Q3, with a target to reach 50% before FY27.

Innovation and efficiency are central to the company's operations. Vaibhav Global is continuously implementing process improvements, automation, and AI across various business functions. This includes AI-powered chatbots, automated email responses, and AI-generated TV schedules, which have contributed to efficiency gains, such as a 1.2% improvement in HR costs last quarter. The company is also seeing significant traction in specific product categories like lab-grown diamonds, which now represent roughly 10.7% of retail revenue with an average selling price of around $250.

Responsible Growth and Financial Health

Sustainability and corporate social responsibility remain integral to Vaibhav Global's ethos. The company has committed to the Science-Based Targets Initiative (SBTi) and is aligning its carbon reduction strategy with the Paris Agreement's 1.5-degree pathway. Its ICRA ESG rating was upgraded to 73 ('Strong'), reflecting continuous progress in governance and environmental practices. On the social front, the flagship 'your purchase feeds...' program has served over 109 million meals, currently providing approximately 59,000 meals every school day, with a long-term goal of reaching 1 million meals per school day by FY40.

Financially, the company maintains a strong balance sheet with a net cash position of INR213 crores. Operating cash flow stood at INR160 crores, and free cash flow was INR143 crores, reflecting prudent capital management. Return ratios also showed improvement, with ROCE at 21% and ROE at 15%. The Board approved a third interim dividend of INR1.5 per equity share, implying a 28% payout, underscoring a balanced approach to capital allocation. Looking ahead, management expects 9% to 11% revenue growth in FY27 with an EBITDA margin of 10.5% to 11%, demonstrating confidence in sustained profitable growth.

Outlook: Sustained Growth and Digital Leadership

Vaibhav Global Limited's Q3 FY26 performance underscores its strategic clarity and disciplined execution. The company's focus on vertical integration, digital transformation, and brand building positions it well to navigate market complexities. With Germany turning profitable, a robust cash position, and continuous innovation through AI, Vaibhav Global is set for sustained profitable growth. The management's commitment to both financial performance and social responsibility reinforces investor confidence in its long-term trajectory.