V I P Industries Ltd

The agency has, however, reaffirmed its rating on the short-term bank facilities and commercial paper programme of the company at 'Crisil A2+'. Crisil Ratings stated that the rating action factors in higher-than-anticipated decline in the company's operating performance in fiscal 2026 and the expectation that it will remain below earlier estimates over the near term. VIP is likely to continue reporting net losses in fiscal 2027, which will constrain the financial risk profile and impact key debt metrics. The company is undergoing a transition with Multiples Alternate Asset Management (Multiples) acquiring 31.9% stake and assuming management control in December 2025. Revenue growth is expected to remain modest in fiscal 2027 (mid-single digits) before improving to 12'13% compound annual growth rate (CAGR) over the medium term, supported by new product launches and initiatives to strengthen channel presence. Operating profitability is expected to recover gradually, aided by cost rationalisation measures, including supply chain optimisation, value engineering, scale-based sourcing and improved retail network efficiency. While these measures should support margin recovery and reduce net losses, the pace of profitability improvement remains a key rating sensitivity. Debt protection metrics are expected to stay constrained in the near to medium term due to modest profitability. Crisil Ratings expects debt to rise over the medium term to support working capital needs and capital expenditure (capex) for expansion and maintenance. Liquidity remains adequate, supported by unencumbered cash of Rs 116 crore and absence of long-term debt obligation. Multiples, along with co-investors, acquired 31.89% stake in VIP through a two-tranche transaction at Rs 388 per share, completed between September and December 2025. Crisil Ratings will monitor the company's strategy and financial policy under the new management with expectations of timely promoter support, if required. The ratings continue to reflect VIP's established brand in the luggage segment, supported by a diversified product and revenue profile, and potential support from new promoters. These strengths are partly offset by weak profitability due to intense competition from organised and unorganised players, modest financial risk profile and high working capital intensity. VIP manufactures hard luggage in India and markets hard and soft luggage sourced from India, China and its Bangladesh subsidiaries. VIP is one of largest players in the luggage industry in India. The company's consolidated net loss widened to Rs 128.90 crore in Q4 FY26 from net loss of Rs 27.36 crore reported in Q4 FY25. Revenue from operations declined 11.7% year on year (YoY) to Rs 436.23 crore in the quarter ended 31 March 2026. Powered by Capital Market - Live

V I P Industries has received revision in credit ratings from CRISIL for bank facilities of Rs 464 crore as under: Long term rating - CRISIL A-/ Negative (down graded from CRISIL A/ Negative) Short term rating - CRISIL A2+ (reaffirmed)

Revenue from operations declined 11.7% year on year (YoY) to Rs 436.23 crore in the quarter ended 31 March 2026. The company reported a loss before exceptional items and tax of Rs 129.33 crore in Q4 FY26, compared with a loss of Rs 36.88 crore in Q4 FY25. During the quarter, it recorded an exceptional item of Rs 0.53 crore towards an insurance claim receipt related to the loss of property, plant, and equipment and inventories destroyed in a fire at the company's regional warehouse in Guwahati on May 17, 2025. Total expenses rose 6.43% YoY to Rs 569.28 crore during the quarter. Finance costs stood at Rs 20.12 crore, up 19.19% YoY, while the cost of materials consumed stood at Rs 212.61 crore, up 5.94% YoY. On a standalone basis, the company reported a net loss of Rs 142.33 crore in Q4 FY26 as against a net loss of Rs 30.51 crore posted in Q4 FY25. Revenue from operations fell 11.8% year on year to Rs 430.61 crore in Q4 FY26. The company said inventory levels across channels have reduced to below 60 days from over 90 days in September 2025. The management indicated that no incremental provisions are expected going forward. It further said that the restructuring undertaken during FY26 is expected to support a return to growth in FY27, with a phased recovery of market share and stronger growth momentum targeted from FY28 onwards. VIP Industries is the leading manufacturer of hard and soft luggage in Asia.Powered by Capital Market - Live

Net Loss of V I P Industries reported to Rs 128.90 crore in the quarter ended March 2026 as against net loss of Rs 27.36 crore during the previous quarter ended March 2025. Sales declined 11.73% to Rs 436.23 crore in the quarter ended March 2026 as against Rs 494.21 crore during the previous quarter ended March 2025. For the full year,net loss reported to Rs 338.01 crore in the year ended March 2026 as against net loss of Rs 68.79 crore during the previous year ended March 2025. Sales declined 14.70% to Rs 1858.13 crore in the year ended March 2026 as against Rs 2178.43 crore during the previous year ended March 2025. ParticularsQuarter EndedYear EndedMar. 2026Mar. 2025% Var.Mar. 2026Mar. 2025% Var. Sales436.23494.21 -12 1858.132178.43 -15 OPM %-18.841.32 --12.973.78 - PBDT-98.60-6.59 -1396 -288.9120.01 PL PBT-129.33-36.88 -251 -416.20-99.05 -320 NP-128.90-27.36 -371 -338.01-68.79 -391 Powered by Capital Market - Live

VIP Industries will hold a meeting of the Board of Directors of the Company on 15 May 2026.

Poddar, a Chartered Accountant with over 20 years of experience across retail, manufacturing, and e-commerce sectors, brings expertise in financial management, strategy, internal controls, ERP implementation, digital transformation, and treasury management. He previously served as Group Controller at Reliance Retail Ventures and CFO of Reliance Jewels at Reliance Retail, leading finance transformation initiatives, M&A, governance, and statutory compliance. He has also held senior finance roles at Alstom Transport India and Titan Company. The appointment follows the relinquishment of the CFO and KMP role by Manish Desai, effective 10 March 2026. Desai will continue with the company in a new role within the organisation, and the company acknowledged his contributions and placed on record its appreciation for his services. There are no relationships between Mr. Poddar and the company's directors. VIP Industries is engaged interalia, in the business of manufacturing and marketing of luggage, bags and accessories. The company reported consolidated net loss of Rs 121.48 crore in Q3 FY26 as against net loss of Rs 12.42 crore in Q3 FY25. Revenue from operations declined 9.4% year on year to Rs 454.13 crore in Q3 FY26. Shares of VIP Industries shed 0.18% to Rs 366.40 on the BSE.Powered by Capital Market - Live

Net Loss of V I P Industries reported to Rs 52.87 crore in the quarter ended December 2025 as against net loss of Rs 12.42 crore during the previous quarter ended December 2024. Sales declined 9.37% to Rs 454.13 crore in the quarter ended December 2025 as against Rs 501.07 crore during the previous quarter ended December 2024. ParticularsQuarter EndedDec. 2025Dec. 2024% Var. Sales454.13501.07 -9 OPM %-16.925.71 - PBDT-89.5013.34 PL PBT-121.48-16.69 -628 NP-52.87-12.42 -326 Powered by Capital Market - Live

VIP Industries has postponed the meeting of the Board of Directors which was scheduled to be held on 12 February 2026. The meeting will now be held on 14 February 2026.Powered by Capital Market - Live

VIP Industries will hold a meeting of the Board of Directors of the Company on 12 February 2026.Powered by Capital Market - Live

V I P Industries has received revision in credit ratings from CRISIL as under: Total bank facilities rated - Rs 424 crore Long term rating - CRISIL A+/ Negative (downgraded from CRISIL AA-/ Negative) Short term rating - CRISIL A1 (downgraded from CRISIL A1+) Powered by Capital Market - Live