Varvee Global Limited (VGL) Posts Strong Operational Profit & EBDITA for Q2FY26: +80% Revenue Growth, 49.8% EBITDA Margin; PAT +23.5% YoY; H1 PAT +15.7% and Attaining Near-Zero Debt

AHMEDABAD, India, Nov. 13, 2025 /PRNewswire/ -- VGL Limited ("VGL" or the "Company") today reported results for the quarter (Q2 FY26) and half year ended 30 September 2025 (H1 FY26). The period reflects a decisive improvement in operating profitability, a materially lighter balance sheet, and continued discipline in capital allocation. Key Financial Highlights (Standalone, Rs. in Million) Particulars Q2 FY25 Q2 FY26 YoY Δ H1 FY25 H1 FY26 YoY Δ Revenue from Operations 154.79 278.31 +79.80 % 290.10 272.79 –5.97% Gross Profit 26.96 155.25 +475.80 % 15.13 180.58 +1,093.38 % Gross Margin (%) 17.42 % 55.78 % +3,836 bps 5.22 % 66.20 % +6,098 bps Employee Expenses 21.02 9.57 –54.45% 46.61 20.22 –56.62% Other Expenses 67.35 47.01 –30.20% 163.28 98.05 –39.95% EBITDA –46.75 138.46 Swing to profit –156.01 127.29 Swing to profit EBITDA Margin (%) –30.20% 49.75 % +7,995 bps –53.78% 46.66 % +10,044 bps Finance Cost 38.08 0.00 –99.99% 91.37 14.27 –84.38% Profit for the Period (PAT) 82.66 102.11 +23.53 % 308.51 356.92 +15.69 % Earnings per Equity Share (₹) 3.52 3.96 +12.50 % 13.15 14.17 +7.76 % Performance highlights (Standalone) • Leadership transition translating to outcomes: In the first full quarter under the new management team, the Company delivered a 79.8% YoY rise in Revenue from Operations, a swing to positive EBITDA of ₹138.46 million with 49.75% margin, and near-zero finance cost, reflecting sharper execution and balance-sheet repair. • Margin reset firmly in place: Gross margin expanded +3,836 bps YoY to 55.78% in Q2 (H1: +6,098 bps to 66.20%), driven by stronger realisations, richer mix, and tighter input discipline led by new management. • EBITDA swing with premium profitability: Q2 EBITDA turned positive to ₹138.46 mn with 49.75% margin (H1: ₹127.29 mn, 46.66% margin) from losses last year, clear evidence of operating leverage and cost take-out driven by new management. • Cost excellence across the P&L: Employee expenses fell 54.45% YoY in Q2 (H1: 56.62%), while other operating expenses reduced 30.20% (H1: 39.95%), creating durable operating headroom. • Finance cost nearly eliminated: Q2 finance cost was effectively nil (–99.99% YoY); H1 down 84.38%, a direct outcome of deleveraging and balance-sheet repair. • Earnings traction improving: Q2 PAT rose 23.53% YoY to ₹102.11 mn; H1 PAT up 15.69% to ₹356.92 mn, with EPS up 12.50% in Q2 and 7.76% in H1, demonstrating quality of earnings, not just cost-led gains. • Operating flywheel turning: Higher gross profit (Q2 +368.64%, H1 +355.78%) alongside lower opex indicates a structurally stronger unit-economics profile and capacity to reinvest without margin dilution. • Positive read-through for cash generation: The combination of near-50% quarterly EBITDA margin and near-zero finance cost enhances free-cash-flow potential and supports continued discipline in capital allocation. • Strong operating turnaround in Q2: Revenue from Operations rose 79.80% YoY in Q2 to ₹278.31 mn, reflecting stronger realisations and a richer mix. H1 was lower by 5.97% YoY due to deliberate portfolio rationalisation and timing effects, with the Q2 exit run-rate pointing to a healthier base for the second half. • Deleveraging continues: Non-current borrowings ₹2,290.4 million and current borrowings ₹520.1 million vs FY25; finance cost down 84.38% YoY in H1 to ₹14.27 million (near-zero in Q2). Strategic Updates • Operating leverage now visible: Higher gross profit and lower opex are translating into sustainably stronger unit economics, with room to reinvest without margin dilution. • Balance sheet optionality: With finance costs sharply lower and leverage reduced versus FY25, the Company is better positioned to normalise working-capital cycles and fund growth organically. • Execution priorities for H2: Deepen high-margin product lines, tighten cash conversion, and maintain conservative funding while pursuing selective, returns-accretive opportunities. Management Outlook: "This is the first full quarter with the new leadership playbook at work where results are visible in the margin reset, the EBITDA swing, and the near-elimination of finance costs. Gross Profit rose to ₹155.25 million in Q2 FY26 (↑476% YoY) and ₹180.58 million in H1 FY26 (↑1,093% YoY). We will carry this cadence into H2, compounding free cash and investing where returns are highest. This quarter signals a clear strategic inflection for VGL; a cleaner balance sheet and a higher-quality margin profile driven by sharper execution. We simplified the portfolio and used the proceeds, alongside internal cash generation, to retire debt and cut our financing burden to near zero. With Q2 EBITDA margin at almost 57% and gross margin at 66%, our focus now is simple: compound free cash flow, keep returns above the cost of capital through cycles, and invest with discipline in the categories and customer cohorts that matter." - Mr. Jaimin Gupta, Cha