Vardhman Appliances IPO

Strengths · 7

• 01Revenue from operations grew from Rs 758.64 crore in FY2024 to Rs 869.62 crore in FY2026.
• 02Profit after tax rose from Rs 18.52 crore in FY2025 to Rs 22.49 crore in FY2026, and EBITDA margin moved from 5.36% to 5.98%.
• 03The customer count rose from 29 in FY2024 to 41 in FY2026, and the company serves over 40 consumer appliance brands.
• 04The product range is spread over fans (33.44% of FY2026 revenue), kitchen appliances (29.63%) and home comfort appliances (26.40%), so no single category gives more than a third.
• 05The company had 1,285 manufactured SKUs in FY2026 across five plants of about 405,790 square feet in total.
• 06Its Lazer subsidiary gives a direct consumer channel through over 700 distributors and over 300 service franchisees.
• 07Net worth grew from Rs 45.27 crore in FY2024 to Rs 100.47 crore in FY2026, and ROE was 25.27% in FY2026.

Risks · 10

• 01Top 10 customers gave 65.62% of FY2026 revenue from operations, and the top 5 gave 59.62%, so losing one large customer would hurt.
• 02Sales to consumer appliance brands were 77.19% of FY2026 revenue, so the company depends on the sourcing decisions of a few brands.
• 03Net cash flow from operating activities fell from Rs 42.63 crore in FY2024 to Rs 1.53 crore in FY2026, although profit after tax was Rs 22.49 crore in FY2026.
• 04Total borrowings rose from Rs 80.04 crore in FY2024 to Rs 122.23 crore in FY2026, and the interest coverage ratio was 2.76 times in FY2026.
• 05Of the Rs 250.00 crore fresh issue, Rs 55.00 crore is for repaying borrowings and Rs 15.00 crore is for repaying borrowings of the Lazer subsidiary, so part of the new money only reduces debt.
• 06The offer also includes an offer for sale of up to 2,50,04,200 shares, and the money from it goes to the selling shareholders, not the company.
• 07The general corporate purposes amount is not yet fixed and can go up to 25% of the gross proceeds.
• 08The company has no definitive supply agreements with its suppliers, and raw material price swings may not be passed on to customers.
• 09Revenue comes mainly from Punjab, Haryana and Uttar Pradesh, and 72.96% of FY2026 revenue came from repeat customers.
• 10The auditors have included emphasis of matter remarks on the special purpose combined financial statements and CARO 2020 remarks, and there are 8 criminal proceedings against the promoters and 2 tax proceedings against the company.

Vardhman Appliances Limited is a vertically integrated electronics manufacturing services (EMS) company. It makes products on an OEM and ODM basis for consumer appliance brands in India. The range covers fans, kitchen appliances, home comfort appliances and electrical components. As on 31 March 2026 the company had more than 1,200 SKUs.

Most of the revenue comes from making products for other brands. Sales to consumer appliance brands were 77.19% of revenue from operations in FY2026. The company had 41 customers in FY2026, up from 29 in FY2024. Customers named in the document include Usha International, RR Kabel, Voltbek Home Appliances (Voltas Beko), Singer India, GM Elektra and Cello World.

The company also has a consumer-facing arm. Its wholly owned subsidiary, Lazer India Private Limited, sells appliances under the Lazer brand. As of 31 July 2026, Lazer's network had over 700 distributors, 14 company-owned branches and over 300 service franchisees across 25 states and union territories, covering over 13,000 pin codes.

In FY2026, fans gave Rs 290.81 crore of revenue (33.44%), kitchen appliances Rs 257.68 crore (29.63%) and home comfort appliances Rs 229.59 crore (26.40%). Components added Rs 69.12 crore (7.95%).

The company runs five manufacturing units with an aggregate area of about 405,790 square feet. Three are in Sonipat (Kundli), Haryana and two are in Solan (Baddi), Himachal Pradesh. It had 1,422 permanent employees in FY2026, against 1,156 in FY2025. The eight promoters are members of the Jain family, led by Chairman and Managing Director Parmod Kumar Jain, who has more than 43 years of experience in the domestic appliances industry.

The industry

The Indian consumer durables market is projected to reach about INR 11.0T (US$ 124.5B) by FY31P, a CAGR of 14.6%. The domestic appliances OEM market stood at INR 163.9B in FY26 and is projected to reach INR 256.9B by FY31P at a CAGR of 9.4%. The domestic appliances ODM market stood at INR 57.4B in FY26 and is projected to reach INR 115.8B by FY31P at a CAGR of 15.1%. The industry report says brands are shifting design and manufacturing work to EMS providers.

Customer concentration: Top 5 customers gave 59.62% of FY2026 revenue from operations (60.81% in FY2025). Top 10 customers gave 65.62% (66.39% in FY2025).