VIP Industries Q2FY26: The Luggage King’s Suitcase Just Burst Open – ₹162 Cr Loss, PE Takeover, and a Full Baggage of Drama

1. At a Glance

VIP Industries Ltd, India’s OG luggage giant and Asia’s biggest baggage boss, just checked in amassive ₹162 crore loss in Q2FY26. The suitcase maker, once flaunting a 38% market share and high-flying brands likeVIP, Skybags, Carlton, Aristocrat, and Caprese, is suddenly dragging its trolley uphill. The stock now trades at ₹378, with amarket cap of ₹5,374 crore— not small by any means, but let’s just say the share price graph looks like a suitcase dropped from baggage claim.

WhileSafari Industriesis zooming past with double-digit profit growth, VIP is going through turbulence —negative OPM of 2.38%,ROE at -12.1%, andDebt-to-Equity ratio of 1.68x.Add to that aPromoter stake drop from 51.7% to 49.7%and Multiples PE taking control — and you’ve got a classic case of “When private equity enters, the old guard exits.”

Quarterly sales stood at ₹406 crore (down 25.3% YoY), while the company posted astaggering net loss of ₹147 crore, owing to inventory write-downs worth ₹58–68 crore and a messy retail channel realignment. Still, the luggage legend has 14,000 retail points, 500+ brand outlets, and operations in 45+ countries. But as of now, it’s not soaring — it’s struggling to find its boarding gate.

2. Introduction

Ah, VIP Industries — the brand that made every 90s Indian proud to own a hard-shell suitcase that could double as a seat at a railway platform. Once the symbol of middle-class aspiration, today it’s a symbol of how fast the consumer market can pack up your profits.

In the last few years, the company has been trying to gofrom “airport uncle” to “airport influencer.”It’s pushing premium brands like Carlton and Skybags while keeping the old faithful Aristocrat alive for price-sensitive travelers. Sounds good in theory — but the execution has been rougher than a baggage belt at Delhi airport.

And just when things couldn’t get heavier,Multiples Private Equityrolled in with an open offer at ₹388 per share, acquiring control from the Piramal family. Old chairmanDilip Piramalexited,Renuka Ramnathtook over as chair, andAtul Jainbecame the new MD. In corporate terms, that’s a full luggage transfer — economy to business class, with turbulence included.

But the story doesn’t end there. VIP still holds over38% market sharein the organized luggage sector — an oligopoly shared with Safari and Samsonite. However, while competitors are zipping up profits, VIP’s margins are stuck at the check-in counter. The question is — can the new management unpack this mess, or will the once-iconic VIP become “Very In Pain”?

3. Business Model – WTF Do They Even Do?

In simple terms, VIP Industries makes and sellsluggage, backpacks, and handbags.But here’s the twist — it doesn’t just sell bags; it sellsbrands.

Itsfive key brandsdominate Indian retail shelves:

• VIP, Carlton, Skybags– premium to mid-premium
• Aristocrat, Alfa– budget segment
• Caprese– handbags and accessories for the style-conscious

The company’s entire identity is built around its brand hierarchy — from business class Carlton to “railway proof” Aristocrat. Together, they make VIP theworld’s second-largest luggage manufacturer.

Revenue segmentation tells the real story:

• Premium brands (~55%)are where the profit should come from.
• Value brands (~43%)keep volumes rolling.
• Caprese (3%), the style child, is still in its growth phase.

The business model was always simple — source or manufacture cheap, market loud, and sell through every channel possible. Today, it has14,000 touchpoints, 500+ exclusive stores, and partnerships across e-commerce and retail.

However, over-reliance on imports fromBangladesh (8 factories)and sluggish demand post-COVID hit both margins and morale. The management wanted to invest ₹200 crore in new capacity, but that plan ison hold till FY26. Translation: the bags are packed, but no one’s traveling.

4. Financials Overview

Quarterly Comparison Table (₹ Crores)