StockWatch
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AARVEE DENIMS & EXPORTS LTD. Q2 FY26 Results

VGLQ2 FY26 Results
Filing
MetricValue ( Cr)Q1 FY26Q2 FY25
Revenue27.835141.9%79.8%
Total Income34.32447.2%31.0%
Expenditure15.52419.5%38.1%
PBT18.81472.3%23.7%
Net Profit10.2159.9%23.5%
OPM49.75%50.25pp143.66pp
NPM29.75%70.25pp13.13pp
EPS3.9660.0%12.5%
View full financials

Varvee Global Ltd Posts 80% Revenue Growth, 49.8% EBITDA Margin & 23.5% PAT YoY Growth in Q2FY26; Attains Near-Zero Debt

12 Nov 2025 · 12 Nov 2025, 06:53 pm

Summary

Varvee Global Ltd has reported strong operational profitability and a materially lighter balance sheet for Q2FY26 and H1 FY26. The company has seen a 80% YoY growth in revenue, a 49.8% EBITDA margin, and a 23.5% YoY growth in PAT. The company has also attained near-zero debt.

Key Highlights

  1. 1

    79.8% YoY rise in Revenue from Operations

  2. 2

    Swing to positive EBITDA of ₹138.46 million with 49.75% margin

  3. 3

    Near-zero finance cost

  4. 4

    Gross margin expanded +3,836 bps YoY to 55.78% in Q2

  5. 5

    Q2 EBITDA turned positive to ₹138.46 mn with 49.75% margin

  6. 6

    Employee expenses fell 54.45% YoY in Q2

  7. 7

    Other operating expenses reduced 30.20%

  8. 8

    Q2 finance cost was effectively nil (-99.99% YoY)

  9. 9

    Q2 PAT rose 23.53% YoY to ₹102.11 mn

  10. 10

    H1 PAT up 15.69% to ₹356.92 mn

  11. 11

    EPS up 12.50% in Q2 and 7.76% in H1

  12. 12

    Structurally stronger unit-economics profile

  13. 13

    Positive read-through for cash generation

  14. 14

    Revenue from Operations rose 79.80% YoY in Q2 to =₹278.31 mn

  15. 15

    Deleveraging continues: Non-current borrowings ₹2,290.4 million and current borrowings ₹520.1 million vs FY25

  16. 16

    Finance cost down 84.38% YoY in H1 to ₹14.27 million

  17. 17

    Higher gross profit and lower opex are translating into sustainably stronger unit economics

  18. 18

    Balance sheet optionality: With finance costs sharply lower and leverage reduced versus FY25

  19. 19

    Q2 EBITDA margin at almost 57% and gross margin at 66%

Management Comments

M

Mr. Jaimin Gupta

Chairman & Managing Director

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 (71,093% 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.

Informational and educational content only. Not investment advice.