Shares of VIP Industries Ltd. hit a fresh 52-week low of ₹279 on May 18, 2026, falling ₹10 or 3.42% from the previous close of ₹292.05 to trade at ₹282.05 in early session. According to reports from CNBC TV18, the stock has declined more than 25% over the last 12 months, reflecting sustained investor concerns about the company's performance. The stock's 52-week range of ₹279 to ₹492.30 places today's intraday low at the absolute bottom of the past year, with the P/E ratio showing a dash reflecting the company's loss-making status.
The company reported its worst full-year financial performance in recent memory with a net loss of ₹338.01 crore for FY26 against a loss of ₹68.79 crore in FY25, on revenue that fell 14.70% year on year to ₹1,858.13 crore from ₹2,178.43 crore. For Q4FY26 specifically, consolidated revenue declined 11.7% year on year to ₹436.23 crore from ₹494.21 crore in Q4FY25. The company reported an EBITDA loss of ₹82.20 crore for the quarter with an EBITDA margin of -18.84% against a positive 1.32% in Q4FY25 — a swing of over 2,000 basis points. Net loss for Q4FY26 widened sharply to ₹128.90 crore from ₹27.36 crore in the year-ago quarter, a deterioration of 371%.
According to CNBC TV18, the company said the "repair" process continued into the March quarter as it undertook restructuring measures during FY26. VIP Industries added that inventory levels across channels have now fallen to below 60 days, down from over 90 days in September 2025. To move this inventory, the company extended ₹30 crore of channel inventory liquidation support to distributors in Q4FY26 alone — effectively subsidising discounting at the channel level — and incurred ₹23 crore in one-time restructuring costs. These two items together contributed ₹53 crore to the Q4 EBITDA loss. The revenue decline was driven by three factors: sharp reduction in SLOB inventory flowing through the system, weak channel partner engagement during the clean-up phase, and lower online sales as the company rationalised its SKU mix and pricing structure.
Despite the challenging quarter, VIP Industries launched more than 65 new products in Q4FY26 alone as it moved to replenish cleared shelf space with premium, trend-aligned SKUs across its four core brands — VIP, Skybags, Aristocrat, and Alfa. Manufacturing facility utilisation at Bangladesh and Nashik improved significantly to approximately 95%, indicating that production capacity is ready to serve the recovering demand pipeline. The company implemented a 6-7% price hike effective May 2026 — the first meaningful price increase in several quarters — which will directly support margin recovery from Q1FY27 onwards if volume holds.
Motilal Oswal Securities reiterated a Buy rating on VIP Industries with a revised target price of ₹430 — implying 52.5% upside from the current level of ₹282.05 and valuing the stock at 41x FY28 estimated earnings. The brokerage's thesis rests on four pillars: the inventory clean-up is now substantially complete with the ₹1.3 billion cumulative impact from old stock liquidation being a one-time drag that does not recur; VIP has implemented meaningful price increases effective May 2026; secondary sales registered double-digit growth even during Q4FY26 despite inventory disruption; and the channel re-energisation programme is expected to restore distributor confidence from Q2FY27 onwards. Motilal Oswal projects a 16% revenue CAGR for VIP Industries over FY26-28, with EBITDA recovery beginning in FY27 and a full turnaround expected by the second half of FY27.
