VIP Clothing Q1 FY27: Stable Revenue, Margin Reset in Focus

In Q1 FY27, revenue from operations was INR 646.93 million, EBITDA was INR 50.69 million with an EBITDA margin of 7.84%, and PAT was INR 19.12 million with a PAT margin of 2.95%.

Management attributed the moderation in operating profitability to higher raw material prices, which were impacted by the ongoing global geopolitical environment and conflicts.

Management stated that it expects EBITDA margins to stabilise in the range of 8% to 9% going forward, supported by pricing measures taken from the upcoming quarter.

Key initiatives mentioned include premiumization and portfolio strengthening (including Frenchie X and the Vuwa Series), category expansion with a women’s innerwear launch targeted for H2 FY27, deeper distribution, and increasing contribution from modern and digital channels.

Management disclosed a proposed preferential issue of convertible warrants aggregating approximately INR 477.7 crore, intended to provide financial flexibility, strengthen working capital, and support growth initiatives.

The presentation disclosed 550+ distributors, 110,000+ retailers, 10+ e-commerce platforms, 3 warehouses (Mumbai, Kolkata, Thingalur), 190+ marketing and sales professionals, and 2 exclusive brand outlets.