This article first appeared on GuruFocus .
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Revenue Growth:23% year-on-year increase.
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Same-Store Sales Growth (SSG):9% overall, with V-Mart at 8% and Unlimited at 13%.
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Gross Margin:Declined by 80 bps to 34.5%.
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EBITDA Growth:Pre-Ind-AS EBITDA grew 36% year-on-year to INR 83 crores; post-Ind-AS EBITDA grew 27% year-on-year to INR 161 crores.
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EBITDA Margin:Expanded to 7.6% pre-Ind-AS and 14.8% post-Ind-AS.
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Profit Before Tax (PBT):Increased by 39% year-on-year to INR 60 crores.
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Profit After Tax (PAT):Grew 41% year-on-year to INR 47 crores.
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CapEx:INR 38 crores, primarily for new store additions and refurbishments.
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Cash Flow:Positive cash flow of INR 76 crores.
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Store Network:Added 15 stores, closed 1, totaling 591 stores across 335 cities.
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Inventory Days:Reduced by 8% year-on-year to 86 days.
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Inventory Per Store:Decreased by 5% to around INR 1.5 crores.
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Operating Leverage:150 bps improvement due to disciplined cost management.
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LimeRoad Marketplace Losses:Reduced by 39% year-on-year.
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Release Date: July 27, 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 strong revenue growth of 23% year-on-year, with same-store sales growth (SSG) of 9%.
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The company achieved its 11th consecutive quarter of sustained growth, reflecting effective merchandising and operational strategies.
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Footfalls increased by 39% and bill count rose by 18% year-on-year, indicating strong customer engagement.
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The Unlimited format in South India showed impressive performance with 33% revenue growth and 40% EBITDA growth.
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V-Mart Retail Ltd ( BOM:534976 ) maintained an asset-light, debt-free balance sheet with positive cash flow generation of INR76 crores.
Negative Points
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Gross margin declined by 80 basis points to 34.5% due to a mix change and inventory provisioning.
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The company faces challenges from inflation and geopolitical volatility affecting raw material and supply chain costs.
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Conversion rates dropped from mid-40s to 38-39%, attributed to increased market competition and customer behavior.
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Minimum wage hikes in key states like UP and Karnataka pose a challenge to cost management.
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The impact of El Nino and deficient monsoon rains could potentially affect demand patterns and agricultural outlook.
Q & A Highlights
Q: Could you elaborate on the mixed change point affecting gross margins? A: Lalit Agarwal, Managing Director, explained that the gross margin changes were not due to a specific category but rather a result of the price at which products are bought and sold, along with promotional schemes. There was a mix change in product lines, leading to better Average Selling Price (ASP) due to selling more combo products or higher-value items.
Q: What has driven the decline in conversion rates from mid-40s to 38-39%? A: Anand Agarwal, CFO, noted that the decline in conversion rates is due to increased competition, leading customers to explore more options before purchasing. Despite this, memo counts have increased by 18%, indicating healthy customer engagement.
Q: How are you managing the impact of raw material price increases? A: Lalit Agarwal stated that while raw material prices have increased, the company is working on creating efficiencies and better productivity with vendors. Some price increases are being passed on to consumers, but efforts are made to minimize the impact on consumption.
Q: Could you split the memo growth between old and new stores? A: Lalit Agarwal explained that memo growth from new stores is 100% as they are new entries. For existing stores, memo growth is driven by increased footfall and customer return rates, despite a slight drop in conversion rates.
Q: What is the company's approach to managing inflation and cost pressures? A: Anand Agarwal mentioned that historically, a 3-4% Same Store Sales Growth (SSG) is sufficient to offset inflationary pressures. The company focuses on maintaining operational efficiency and managing fixed costs to handle inflation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
