V-Mart Retail (VMART) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw 23% year-on-year revenue growth to ₹10,888 million, 9% SSSG, and 39% higher customer footfall, marking the 11th consecutive quarter of positive like-for-like growth.

• Growth was driven by disciplined store expansion, improved product mix, operational efficiency, and omnichannel initiatives, with both new and existing stores contributing.

• Unlimited format in South India outperformed, with 33% revenue growth, 40% EBITDA growth, and new stores delivering higher sales per sq ft than legacy stores.

• LimeRoad marketplace NMV grew 18% year-on-year, with losses reduced by 39% and improved commission income.

• Leadership transition completed, with Anand Agarwal as COO and CFO, and appointment of Mr. Suraj Rathor as Head of Finance.

Financial highlights

• Revenue grew 23% year-on-year to ₹10,888 million; SSSG at 9% overall, with Unlimited at 13%.

• Gross margin was 34.5%, down 80 bps year-on-year due to product mix and inventory provisioning.

• Pre-IND AS EBITDA up 36% year-on-year to INR 83 crore; reported EBITDA up 27% to ₹16,064 lakhs (margin 14.8%).

• PAT up 41% year-on-year to ₹4,721 lakhs; PBT at ₹5,952 lakhs.

• Expenses rose 15%, below revenue growth, yielding 150 bps operating leverage; manpower and power/fuel costs up 17% and 19%.

Outlook and guidance

• Expansion guidance for FY27 remains at 90%+ gross store additions, with disciplined approach to rentals and profitability.

• Q2 expected to see negative impact on sales and margins due to festive timing shift, but recovery anticipated in Q3.

• SSSG expected in mid to high single digits for the year; focus on Tier 4 market expansion and omni-channel growth.

• Emphasis on operational efficiency, inventory optimization, and disciplined cost management.

• Final dividend of ₹1 per equity share for FY26 recommended, subject to shareholder approval.