VIPCLOTHNG - VIP Clothing

📊 NSE: VIPCLOTHNG 🏢 Textiles - Products 📅 Last Updated: 12/14/2025 15:09

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Hosiery. Revenue for H1FY26 reached INR 131.52 Cr, marking a 20.27% increase YoY from INR 109.35 Cr. Annual revenue for FY25 was INR 236.89 Cr, up 29.25% from INR 183.28 Cr in FY24.

Geographic Revenue Split

Not disclosed in available documents, though the company is actively expanding into newer geographies to drive growth.

Profitability Margins

Operating Profit Margin improved to 7.60% in FY25 from -2.36% in FY24. Net Profit Margin for H1FY26 stood at 3.39%, up from 0.95% in H1FY25, reflecting a significant turnaround from past losses.

EBITDA Margin

EBITDA margin for H1FY26 was 9.42%, a substantial improvement from 5.68% in H1FY25 (up 374 bps). Q2FY26 EBITDA margin was 9.30%, up from 5.75% YoY, driven by premiumization and operational discipline.

Capital Expenditure

Not disclosed in available documents, though the company is investing in technology and manufacturing capabilities to increase efficiency.

Credit Rating & Borrowing

Not disclosed in available documents. Finance costs for H1FY26 were INR 4.68 Cr, up 20.05% YoY from INR 3.90 Cr.

⚙️ Operational Drivers

Raw Materials

Hosiery fabrics and yarn (implied by the single segment focus on Hosiery).

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is leveraging SAP and a Distributor Management System (DMS) to reduce material costs and overheads.

Manufacturing Efficiency

Not disclosed in available documents, but the company employs 974 people (362 employees and 612 workers) to facilitate production.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but the company is growing its distributor and retailer network to enhance reach.

📈 Strategic Growth

Expected Growth Rate

20.27%

Growth Strategy

VIP is executing a strategic transformation focused on premiumization (shifting to higher-margin products), cost-cutting initiatives, and restructuring. The company is expanding its brand recognition and retailer network while entering newer geographies and leveraging technology like SAP and DMS to streamline operations and reduce overheads.

Products & Services

Innerwear, Athleisure, Women's innerwear, and Teen innerwear (U-19 brand).

Brand Portfolio

VIP, U-19.

New Products/Services

New product launches include the 'U-19' brand for the teen segment and expanded offerings in women's innerwear and athleisure.

Market Expansion

Expansion into newer geographies and growing the distributor/retailer network are key components of the current growth strategy.

🌍 External Factors

Industry Trends

The innerwear industry is evolving towards premiumization and athleisure; VIP is positioning itself by launching the U-19 brand and expanding its women's segment to capture these higher-margin growth areas, which currently drive the 20.27% YoY revenue growth.

Competitive Landscape

The market is highly competitive with players who have a better ability to spend aggressively on advertisement and marketing.

Competitive Moat

VIP's moat is its long-standing brand legacy since 1991 and established distribution network, which provides a durable advantage in customer trust and market reach compared to newer regional competitors.

Consumer Behavior

Consumer demand is shifting towards a blend of quality, comfort, and style, particularly in the premium and athleisure segments.

⚖️ Regulatory & Governance

Industry Regulations

The company operates under the Companies Act, 2013 and complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

⚠️ Risk Analysis

Key Uncertainties

Key risks include high competition from well-funded players and potential volatility in raw material costs (hosiery fabrics), which could impact the turnaround progress.

Technology Obsolescence Risk

The company is mitigating technology risks by implementing SAP, a Distributor Management System (DMS), and field assistance software to enhance productivity and inventory management.