VIP Clothing Q1 FY27: standalone PAT falls 14% YoY to ₹1.91 Cr as margins compress on flat revenue
PAT -13.9% YoY · revenue -1.2% · margins compressing
₹64.69 Cr
-1.2% YoY
₹1.91 Cr
-13.9% YoY
2.95%
-0.4pp YoY
₹0.21
VIP Clothing's standalone revenue was effectively flat year-on-year at ₹64.69 Cr (-1.2% YoY) against ₹65.45 Cr in Q1 FY26, while PAT declined 13.9% YoY to ₹1.91 Cr from ₹2.22 Cr. Sequentially the drop looks sharper - revenue down 9.6% and PAT down 56.7% from Q4 FY26's ₹71.54 Cr revenue and ₹4.42 Cr PAT - but Q4 is typically the stronger seasonal quarter for the hosiery business, so the QoQ fall is a seasonality artifact rather than a fresh deterioration; the YoY comparison is the one that matters and it shows a genuine, if modest, decline.
Q1 FY-2027 vs prior quarters
Margin compression is the core story: net profit margin fell to 2.95% from 3.39% a year ago, and operating margin (EBITDA/revenue) compressed to roughly 7.8% from 9.5% both YoY and versus Q4 FY26. Total expenses were nearly flat YoY (₹62.22 Cr vs ₹62.33 Cr) but the mix shifted unfavourably - cost of materials consumed jumped to ₹14.71 Cr from ₹9.12 Cr and purchases of stock-in-trade rose to ₹31.73 Cr from ₹26.51 Cr, a combined input-cost increase that outpaced flat revenue - even as employee costs (₹4.42 Cr vs ₹5.22 Cr), finance costs (₹1.87 Cr vs ₹2.45 Cr) and knitting/processing charges (₹3.53 Cr vs ₹4.05 Cr) all eased and partly offset the squeeze.
What the summary numbers don't show
EPS ₹0.21 (basic) vs ₹0.25 in Q1 FY26, face value ₹2/share
No exceptional items in current or year-ago quarter — results unaudited with an unmodified limited review conclusion
There is no analyst street coverage or brokerage preview on record for VIP Clothing specifically to benchmark this print against, and the company has issued no formal prior guidance or outlook, so vsGuidance and vsStreet are both unknown here. Management's filing this quarter carried no separate press release or commentary beyond the standard board-outcome intimation, so there is no company framing to reconcile against the numbers.
W1
Resolution of the ₹47.70 Cr preferential warrant issue (2.12 Cr warrants @ ₹22.50) pending exchange approval - watch for allotment and whether holders pay in full this time, given the 2024 tranche lapsed
W2
Operating margin trajectory - at ~7.8% in Q1 FY27 vs 9.5% in both Q4 FY26 and Q1 FY26; watch whether raw-material and trading-purchase costs (up sharply YoY) ease in coming quarters
W3
Revenue trend - flat YoY at ₹64.69 Cr against a Q4 FY26 run-rate of ₹71.54 Cr; watch whether Q1 softness proves seasonal or persists into Q2
Single standalone statement only (no consolidated section, one reportable segment - Hosiery). No exceptional items in current or comparison periods. Unaudited, subject to limited review with unmodified conclusion.