This article first appeared on GuruFocus .
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Total Sales Growth:24% increase in total sales.
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New Store Additions:29 new stores opened in the quarter.
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Same-Store Sales Growth (SSSG):12% overall, with V-Mart at 12% and Unlimited at 9%.
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South Market Revenue Growth:28% increase in revenue for the Unlimited format in the South market.
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EBITDA Growth:56% year-on-year increase to INR106 crore, with margins expanding by 220 basis points to 10.9%.
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Adjusted PAT:INR10 crore for the quarter.
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Full Year PAT Growth:6x increase to INR124 crore.
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CapEx for the Quarter:INR37 crore, with INR159 crore for the full year.
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Free Cash Flow:Positive INR33 crore for the year.
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Inventory Days Improvement:Improved by three days on a five-quarter rolling average basis.
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Apparel ASP Growth:5% increase in average selling price for apparel.
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Release Date: May 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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V-Mart Retail Ltd ( BOM:534976 ) reported a 24% total sales growth for Q4 FY26, with a significant contribution from new store additions and like-to-like same-store sales growth.
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The company opened 29 new stores in the quarter, marking its highest ever quarterly new store additions, and achieved a 12% like-to-like sales growth.
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The South market under the Unlimited format showed strong momentum with a 28% revenue growth and a 63% increase in EBITDA.
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V-Mart Retail Ltd ( BOM:534976 ) has improved its inventory health, which is expected to result in better gross margins going forward.
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The company has successfully reduced losses in its LimeRoad marketplace business, which is now contributing positively to customer loyalty and higher bill sizes.
Negative Points
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V-Mart Retail Ltd ( BOM:534976 ) faced a 1% decrease in gross margins year-on-year due to inventory provisions and a decline in LimeRoad commission income.
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The company is experiencing inflationary pressures, particularly in polyester yarn-based products, which could impact apparel costs by 3% to 4%.
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There are concerns about potential disruptions in consumer sentiment due to inflation and rising crude oil prices.
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V-Mart Retail Ltd ( BOM:534976 ) anticipates challenges in securing raw materials and managing costs due to geopolitical and market uncertainties.
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The company is facing competitive pressures with new store openings by competitors, which could impact its market share and sales growth.
Q & A Highlights
Q: Can you provide more clarity on the inflationary pressures, particularly regarding raw materials like yarn and cotton, and their impact on V-Mart? A: Lalit Agarwal, Managing Director, explained that there is a direct correlation with crude prices affecting yarn costs, which in turn impacts apparel costs. The company is trying to mitigate this by using different fabrics and negotiating costs, resulting in a 1% to 1.5% increase in product costs, some of which is passed on to consumers.
Q: Given the current inflation and competitive landscape, can V-Mart maintain its EBITDA margin expansion in FY27? A: Lalit Agarwal expressed optimism about maintaining margin expansion through efficiency improvements and mid-digit same-store sales growth. However, he acknowledged potential challenges from inflation and labor costs.
Q: How does V-Mart plan to handle the demand scenario amidst inflation and potential consumer spending constraints? A: Lalit Agarwal noted that while inflation could impact consumer sentiment, V-Mart aims to absorb some costs and selectively pass on price increases. The focus is on attracting more sales from competitors and maintaining consumer loyalty.
Q: What is V-Mart's strategy for growth in the southern market, particularly after seeing traction in Tamil Nadu and Karnataka? A: Lalit Agarwal highlighted the focus on sustainable growth with a strong team in South India. The company sees significant growth potential in existing markets like Uttar Pradesh and Bihar, as well as opportunities across India.
Q: How is V-Mart managing its CapEx, and what are the plans for technology investments? A: Anand Agarwal, CFO, stated that the CapEx for the next year is estimated at INR170 crore to INR180 crore, with a focus on new store expansions, refurbishments, and technology investments, particularly AI-led interventions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
