V-Marc India 5:1 Bonus Issue: Shares Rally as FY26 Profit Jumps 177%

12 May 2026 , 06:01 PM

V-Marc India Limited has announced a major corporate action with its board approving a 5:1 bonus share issue, triggering strong investor enthusiasm and a sharp rally in the company’s stock price. The wire and cable manufacturer also reported exceptional FY26 financial performance, with revenue nearly doubling and profit surging 177% year-on-year.

V-Marc India Approves 5:1 Bonus Issue

In a significant move aimed at rewarding shareholders, V-Marc India approved a 5:1 bonus issue, meaning investors will receive five bonus shares for every one share held.

The company plans to issue more than 12.21 crore new equity shares by capitalizing approximately ₹122.10 crore from its free reserves and share premium account.

To facilitate the bonus issue, the board also approved an increase in the company’s authorized share capital from ₹30 crore to ₹150 crore.

The announcement has generated strong interest among retail and institutional investors, as bonus issues are generally viewed as a sign of management confidence in future growth prospects.

V-Marc India Share Price Surges

Following the announcement, shares of V-Marc India witnessed strong buying momentum in the stock market.

• The stock surged nearly 11% intraday to touch around ₹1,260
• Shares eventually closed at approximately ₹1,182
• The closing price represented a gain of about 4.27% over the previous session
• The company’s market capitalization stood near ₹2,906 crore
• The stock currently trades at a price-to-earnings (P/E) ratio of around 29

The sharp rally reflects investor optimism surrounding both the bonus issue and the company’s robust financial growth trajectory.

Ace Investor Ashish Kacholia Holds 2.7% Stake

Well-known investor Ashish Kacholia also holds a notable stake in the company.

As per available shareholding data:

• Ashish Kacholia owns around 6.61 lakh shares
• His holding represents approximately 2.7% stake in V-Marc India

Market participants often track stocks backed by marquee investors, which further added to investor attention after the announcement.

V-Marc India FY26 Revenue Nearly Doubles

V-Marc India delivered exceptional financial results for FY26, significantly outperforming management guidance.

Strong Revenue Growth

The company reported consolidated revenue of:

• ₹1,797.31 crore in FY26
• Compared to ₹904.87 crore in FY25

This translates into an impressive 99% year-on-year revenue growth, substantially higher than the company’s earlier guidance of 40–50%.

Strong H2 FY26 Momentum

The second half of FY26 remained particularly strong for the company.

• H2 FY26 revenue stood at ₹1,105.76 crore
• Revenue increased nearly 98% YoY
• H2 revenue was also about 60% higher than H1 FY26

The growth was supported by:

• Expanded production capacity
• Strong seasonal demand
• Improved market penetration

EBITDA More Than Doubles

V-Marc India also posted substantial improvement in operating profitability.

EBITDA Performance

• FY26 EBITDA increased to ₹200.8 crore
• FY25 EBITDA was ₹97.1 crore
• EBITDA growth stood at approximately 107% YoY

Margin Expansion

The company’s EBITDA margin improved to 11.2%, driven by:

• Operating leverage benefits
• Better product mix
• Higher B2C contribution through its dealer network

The margin improvement highlights the company’s improving operational efficiency despite rapid expansion.

Net Profit Jumps 177%

Profitability growth remained one of the biggest highlights of the FY26 performance.

PAT Growth

• FY26 Profit After Tax (PAT): ₹100.05 crore
• FY25 PAT: ₹36.09 crore

This reflects a massive 177% year-on-year increase in net profit.

Earnings Per Share

• Consolidated EPS stood at ₹40.97
• PAT margin expanded to 5.6%

The strong earnings growth indicates improving scale and profitability across operations.

FY27 Outlook Remains Positive

Management remains optimistic about future growth and has provided a strong outlook for FY27.

The company expects:

• 40%+ revenue growth
• EBITDA margins in the 11–12% range

The guidance indicates continued momentum in demand and operational performance.

₹500 Crore Capex Plan Through FY30

V-Marc India is also aggressively expanding its manufacturing capabilities to support long-term growth.

Expansion Plans

The company plans capital expenditure of approximately ₹500 crore through FY30.

The expansion aims to increase production capacity to:

• More than 10 lakh circuit kilometres

Importantly, the company expects the expansion to be largely self-funded through internal accruals, reducing dependence on external debt.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing.