VIP Industries shares slip 4% post weak Q1 nos; here's analysts takeaway

VIP Industries shares decline 4 per cent in trade on posting weak Q1 results; what should you do?

VIP Industries, which offers products under the categories of luggage, backpacks, and homebags, shares slipped 3.8 per cent on Friday, August 8, 2025, and logged an intra-day low at ₹432.75 per share on BSE. The selling pressure on the counter came a day after the company posted weak Q1 results, after market hours on Thursday. 

 

At 9:38 AM, VIP Industries share price was down 3.17 per cent at ₹435.85 per share. In comparison, the Sensex was 0.39 per cent lower at 80,307.99. 

VIP Industries Q1 results 

In Q1, the luggage manufacturer reported a consolidated net loss of ₹13 as compared to a net profit of ₹4 crore year-on-year (Y-o-Y).

 

 

Its revenue from operations also declined 12 per cent Y-o-Y to ₹561 crore, as compared to ₹639 crore. The Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹29 crore, as compared to ₹51 crore. Ebitda margin stood at 5 per cent, as against 8 per cent a year ago.  

VIP Industries management says:

• Revival of e-commerce sales is likely in Q2FY26.
• To tackle the problem of lost luggage the company plans to launch a first-time in-industry smart bag tag.
• The Alfa brand will be used as a flanking strategy to capture the lower end products market.
• Within six–seven months the company is hopeful of getting all its pending insurance dues (around ₹30 crore).
• Only maintenance capex to be undertaken in FY26.

VIP Industries results analysis: Here's what brokerages suggest

Nuvama Institutional Equities | Reduce | Target decreased to ₹309 from ₹312

Due to the uncertainty surrounding VIP's management transition, the brokerage has tweaked its revenue and profit after tax (PAT) estimates for FY 26/27 by -7.4 per cent/-7.4 per cent and -12.2 per cent/-13.2 per cent, respectively. "We shall update our estimates once we have a better understanding of the acquirer's plans," the note said. 

 

Centrum Capital | From Add to Reduce | Target ₹427

With a higher growth on the lower-end segment, the brokerage has reduced its earnings estimates as VIP has a 55 per cent premium portfolio. Centrum fears local competition and prolonged disruption in the Bangladesh facility could be risk factors.