This article first appeared on GuruFocus .
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Total Growth:22% growth in Q2 FY26.
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Same-Store Sales Growth:11% LTL growth for both V-Mart and Unlimited territories.
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New Store Openings:25 new stores opened in Q2; total of 40 stores in the first half of the year; 16 additional stores in October and early November, reaching 549 stores.
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Gross Margin:Flat at 33.6%; Offline business margin improved by 0.6% year on year.
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Expenses:Increased by 11%, with a significant drop in line road vertical expenses and lower offline marketing expenses.
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EBITDA:Offline business EBITDA at 8.9%; V-Mart at 9.3% and Unlimited at 9.9%.
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CapEx:INR30 crores spent in the quarter, mainly on new store openings and refurbishments.
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Inventory:Increased by INR220 crores quarter on quarter; improved days of inventory by two days year on year.
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Free Cash Flow:Generated INR27 crores YTD versus a negative INR63 crores last year.
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Release Date: November 11, 2025
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 quarter with a total growth of 22% and opened 25 new stores, indicating robust expansion efforts.
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The company achieved a like-to-like same store sales growth of 11%, showcasing effective sales strategies and consumer engagement.
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Gross margins remained stable at 33.6%, with improvements in offline business margins due to better liquidation and sales realizations.
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The company is focusing on digital advertising and influencer-led marketing, which has shown positive results in attracting consumers.
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V-Mart Retail Ltd is actively expanding in southern India, with the Unlimited business showing strong growth and potential for further expansion.
Negative Points
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The early festive season and unseasonal rains negatively impacted sales in core markets, affecting overall performance.
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Despite government interventions like GST rate reductions, the expected boost in consumer demand was not fully realized.
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There is significant competitive intensity in the retail sector, with new store openings by competitors affecting V-Mart's market share in certain regions.
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The company faces pressure on its vendor network due to increased store openings by value retailers, leading to supply chain challenges.
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Some regions, such as Telangana and Andhra Pradesh, continue to struggle with growth, impacting overall regional performance.
Q & A Highlights
Q: How is the consumer sentiment affecting V-Mart's performance, and what are the expectations for the rest of the year? A: Lalit Agarwal, Managing Director, noted that while the GST implementation did not significantly impact consumer demand, there is optimism for the coming months. The economic conditions appear better, and consumers are expected to spend more, especially with savings from inflation and GST reductions. The company anticipates good growth in footfall in the upcoming months.
Q: Can you provide insights on the competitive intensity and how it affects V-Mart? A: Lalit Agarwal explained that competition remains intense, with new store openings by competitors across India. While some regions like the southern territory have less competition, others are seeing new players. Despite this, V-Mart is maintaining its position, especially in the northern regions where competition is tougher.
Q: How is the Unlimited brand performing, and are there plans for expansion? A: Lalit Agarwal stated that Unlimited is performing well, and there are plans to expand, but cautiously. The focus is on selecting profitable locations due to high property prices. The company is targeting increased penetration in specific states.
Q: What is the outlook for gross margins, and how does it relate to consumer value? A: Anand Agarwal, CFO, mentioned that while the focus is on providing value to consumers, the company is also maintaining healthy margins through better pricing, quality, and design. The gross margin for the offline business improved slightly, and the company aims to balance consumer value with profitability.
Q: How is V-Mart managing inventory freshness and design-to-shelf timelines? A: Lalit Agarwal highlighted that the company is focusing on inventory management and relevancy. The design-to-shelf timeline is currently around 70 days, down from 80 days, but there is room for improvement. The company is working on better planning and vendor integration to enhance efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
