VIP Industries has achieved its first revenue growth in over a year, with revenue rising 3% year-on-year to ₹578 crore in Q1FY27, ending seven consecutive quarters of decline. According to reports from NDTV Profit, the improvement followed a sharp reduction in excess inventory, lower channel stock and the launch of more than 80 new products. The company's core offline retail business, including Caprese, also showed improvement with the decline narrowing from 11% in H1FY26 to 3% in H2FY26. Management has indicated "strong growth in Q2FY27," with Q1 growth concentrated in June after a slower April and May.
VIP's market share has declined significantly to about 29% as of December 31, 2025, from more than 40% earlier, as competitors such as Safari Industries gained ground. As reported by NDTV Profit, the company struggled to keep pace with changing customer preferences, particularly the shift towards hard luggage. The lack of pricing controls across brands and channels led to increased competition between VIP's own brands and heavier discounting, putting pressure on margins. More than 80 new products launched across categories contributed 50% of Q1FY27 revenue, with gross margin recovering to 41% in Q1FY27 from 29% in Q3FY26.
The company absorbed ₹123 crore of one-time provisions for obsolete and slow-moving stock in FY26 and provided ₹40-50 crore of support to help trade partners liquidate legacy inventory. According to NDTV Profit, active SKUs across the portfolio fell by 25%-30%, with net inventory declining by more than ₹226 crore to ₹472 crore in Q4FY26 from ₹698 crore a year earlier. Channel inventory, which had exceeded 90 days in September 2025, fell to 60 days across channels before normalising at 75 days by Q4FY26. The restructuring followed Dilip Piramal's family selling a controlling 31.9% stake for ₹1,763 crore to a consortium led by Multiples Private Equity and Mithun Sacheti in December 2025.
Despite revenue recovery, VIP Industries remains loss-making with a net loss of ₹54 crore in Q1FY27, compared with ₹13 crore a year earlier. As reported by NDTV Profit, EBITDA loss narrowed to ₹7 crore or 1% margin in Q1FY27 from a ₹73 crore loss and negative 17% margin in Q3FY26. The company has introduced Minimum Operating Price guardrails across channels for its VIP and Skybags brands to improve pricing discipline. Management expects stronger growth, market share gains, stable margins and operating leverage from FY28, with Motilal Oswal expecting the business to become fully stable by H2FY27.
VIP Industries shares are trading at ₹308.35 on NSE as of August 21, 2026, representing a 1.90% gain from the previous close of ₹302.60. The stock has a market capitalization of ₹4,380.17 crore and reached a 52-week high of ₹492.30 on July 15, 2025, while touching a 52-week low of ₹278.25 on May 18, 2026. The company's current trading volume stands at 5,08,765 shares, with the stock trading at a Price-to-Earnings ratio of -12.96 compared to the sectoral P/E of 23.24. The online channel remains under pressure with a 36% decline in H1FY26 and another 34% in H2FY26, while the recovery is expected to take longer to normalise.
