While Safari Industries India is down nearly 29% year-to-date, VIP Industries has declined 21% in 2026. According to reports from Bloomberg, Safari has won overwhelming analyst confidence with 11 'buy' calls and just one 'sell', while VIP Industries remains divided with five 'buy', one 'hold' and five 'sell' ratings. As reported by Anand Rathi Institutional Broking Ltd, the sentiment is deeply negative for VIP due to consecutive quarters of net losses, bloated inventory, and a drop in market share from around 47% to approximately 29%. However, Elara Capital has upgraded VIP's rating to 'buy' from 'accumulate' citing the sharp correction over the past three months.
In Q4FY26, VIP Industries reported a nearly 12% year-on-year drop in revenue from operations to ₹436.23 crore, while its net loss widened to ₹128.9 crore from ₹27.4 crore a year ago. According to Elara Capital, the company expects VIP to turn EBITDA positive in FY27E and achieve net profit of ₹25.5 crore in FY28E. Safari Industries showed stronger performance with an over 12% year-on-year rise in revenue from operations to ₹473.3 crore and net profit largely unchanged at ₹37.47 crore versus ₹37.59 crore a year ago. As reported by PL Capital, Safari's Q4FY26 gross margin of 49.3% and EBITDA margin of 13.1% suggest profitability can bounce back quickly once raw material inflation eases.
According to Anand Rathi Institutional Broking Ltd, Safari's leadership in the mass segment gives it a strong edge, especially as competition remains limited with most new entrants being small- to mid-sized players focused on premium segments. Elara Capital believes Safari stands out as the safer bet, backed by consistent execution and expectations that its capabilities will continue to outpace the industry. PL Capital projects a modest recovery in EBITDA margin of 50 basis points over FY26-FY28E, indicating limited earnings downside risk. For VIP Industries, management has laid out a three-phase roadmap with 2026-27 focused on reviving growth through product launches and brand reset, while expecting market share gains from 2027-28 onwards.
From a valuation standpoint, VIP Industries trades at a price-to-book ratio of roughly 9.3x, making its current premium valuation difficult to justify on fundamental metrics alone due to its loss-making status. According to Anand Rathi Institutional Broking Ltd, Safari trades at a premium with a trailing twelve-month P/E ratio generally hovering between 45x and 55x, which is supported by a more stable return on equity of around 16-18%. Elara Capital notes that while VIP's balance sheet clean-up is largely complete, the adjusted FY26 gross margin of 42.5% still reflects sustained competitive pressure.
