Summary
Vaibhav Global Limited - Q3 FY26 Earnings Call Summary Wednesday, January 28, 2026 5:00 PM
Event Participants
Executives 3 Nitin Panwad (Group CFO), Prashant Saraswat (Head, Investor Relations), Sunil Agrawal (Managing Director)
Analysts 7 Deepali Kumari, Deepesh Sancheti, Garvita Jain, Kiran Gadge, Lakshminarayanan, Naveen Baid, Sahil Sharma, Shreyans Jain, Tripti
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,066 crores | +9.1% YoY; First time crossing ₹1,000 crore mark, slightly ahead of guidance. |
| Gross Margin | 63.0% | +170 bps YoY; Driven by vertically integrated supply chain and in-house brands. |
| EBITDA | ₹141 crores | +26.0% YoY; Driven by improved realization and operating leverage. |
| EBITDA Margin | 13.2% | +170 bps YoY; Benefited from 120 bps reduction in employee costs and 60 bps in airtime. |
| PAT | ₹90 crores | +41.0% YoY; Significant bottom-line growth due to margin expansion and scale. |
| Digital Revenue | ₹423 crores | +11.2% YoY; Represents 42% of B2C revenue; on track for 50% target by FY27. |
| Unique Customers | 706,000 | +2.0% YoY; 380,000 new customers added on TTM basis; retention stable at 40%. |
| Net Cash | ₹213 crores | Strong balance sheet supporting agility and interim dividend of ₹1.5/share. |
| ROCE / ROE | 21% / 15% | ROCE saw continued improvement; ROE expected to trend upward in medium term. |
Geographic & Segment Commentary
- United States: Revenue grew 3% YoY in local currency. Performance was impacted by lower consumer confidence and high precious metal prices, though margins were protected by the launch of in-house jewelry casting operations and vertical integration.
- United Kingdom: Revenue declined 1.8% YoY; TJC brand saw a 6% drop while Ideal World grew 12% YoY. Overall UK EBITDA margins improved by 240 bps YoY due to cost rationalization and operational efficiencies despite the top-line contraction.
- Germany: Revenue grew 5.1% in local currency, supported by live TV commerce. The segment turned profitable this quarter with a 6% EBITDA margin, and management expects full-year FY26 EBITDA breakeven.
- Lifestyle Segment: Currently contributes 35% of total sales. Management is targeting a 50% sales mix in the medium term, leveraging direct global sourcing from 30 countries to maintain margins similar to jewelry.
Company-Specific & Strategic Commentary
- In-house Brands: Reached 48% of sales contribution this quarter, nearing the 50% milestone ahead of the FY27 target.
- Lab-Grown Diamonds (LGD): LGD now accounts for 10.7% of retail revenue with a high ASP of ~$250, driving overall revenue realization despite unit volume declines.
- AI Integration: Implementing AI for text/voice customer responses, TV scheduling, and internal data querying (CRO GPT) to drive 1.2% efficiency in HR costs.
- Zero Distance Strategy: Transitioned into 100+ micro-enterprises with P&L responsibilities to foster entrepreneurship and operational efficiency.
- Manufacturing & Tariffs: Operationalized US-based jewelry casting to mitigate tariffs, paying 5.5% only on value addition rather than the full component cost.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 9% to 11% for FY27 | Driven by digital acceleration, UK recovery, and Germany scaling. |
| EBITDA Margin | 10.5% to 11% for FY27 | First time providing a specific EBITDA range; assumes operating leverage and Germany contribution. |
| Digital Mix | 50% of sales by FY27 | Continued migration from TV to digital and OTT platforms. |
| Germany Profitability | Positive EBITDA for FY27 | Segment expected to start contributing to group EBITDA margin from next fiscal year. |
Risks & Constraints
| Risk | Context |
|---|---|
| Macro & Sentiment | Elevated precious metal prices (Gold/Silver) and low consumer confidence in US/UK are causing customers to defer discretionary purchases. |
| Customer Acquisition | High digital marketing costs (CAC) led to revenue stagnation for brands like Mindful Souls; management is optimizing for a 2.5x ROAS. |
| Geopolitical/Tariffs | Ongoing geopolitical tensions and US tariffs on non-jewelry products (impacting costs by 489 bps) remain a headwind. |
Q&A Highlights
Revenue & ASP Trends
- Question: Why did unit volumes decline while revenue grew? (Deepali Kumari)
- Answer: Unit decline is due to a shift toward high-value Lab-Grown Diamonds (~$250 ASP) which drives higher revenue realization despite lower volumes (Nitin Panwad).
Germany Performance
- Question: Is the 6% EBITDA margin in Germany sustainable? (Deepali Kumari)
- Answer: Seasonality helps Q3/Q4; while margins may fluctuate in summer, Germany will be EBITDA positive for the full year and contribute to group EBITDA next year (Sunil Agrawal).
AI & Efficiency
- Question: How is AI impacting the bottom line? (Garvita Jain)
- Answer: Process improvements and AI-driven automation helped reduce US headcount from 500 to 320 over three years while growing revenue (Sunil Agrawal).
UK Disconnect
- Question: Why is the UK struggling and can it return to growth? (Shreyans Jain)
- Answer: Growth was hit by losing two national broadcasting contracts, which are currently being renegotiated; digital traction remains strong (Sunil Agrawal).
Key Takeaway
Vaibhav Global Limited delivered a milestone quarter, surpassing ₹1,000 crores in revenue for the first time, driven by a 9.1% YoY growth. Despite macro headwinds and high metal prices softening consumer sentiment in the US and UK, the company expanded EBITDA margins by 170 bps to 13.2% through vertical integration and premiumization via Lab-Grown Diamonds (10.7% of revenue). Strategic highlights include Germany reaching EBITDA profitability and in-house brands reaching 48% of sales. Management remains focused on digital transformation, targeting a 50% digital sales mix by FY27 and utilizing AI for operational leverage. Looking ahead, the company guided for 9-11% revenue growth and 10.5-11% EBITDA margins for FY27, backed by a strong net cash position and continued efficiency gains from its micro-enterprise model.
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