Bengaluru: V-Mart Retail Ltd’s internet revenue practically tripled year-on-year within the April-June quarter, lifted by value cuts and improved operational effectivity, at the same time as gradual gross sales at current shops and weak demand in small cities mirrored a broader strain on shopper spending.
The Kolkata-based worth vogue retailer’s income rose 13% year-on-year to ₹885 crore within the three months by means of June, its highest quarterly income in over twenty years. The efficiency barely exceeded Motilal Oswal’s analyst estimate of a 12% progress.
V-Mart’s internet revenue surged 177% to ₹34 crore within the April-June quarter of FY26, regardless of discretionary demand remaining patchy within the nation’s small cities.
Gross sales at older shops grew simply 1% from a yr earlier, however the firm stated this quantity appears to be like low primarily as a result of the Eid pageant buying occurred early this yr. “When you regulate for that shift, the true progress at current shops was nearer to five%, with each the V-Mart and Limitless retailer codecs contributing equally,” the corporate stated in an alternate submitting on Thursday.
“The working leverage has clearly kicked in, and these margins will maintain within the coming quarters as effectively,” stated Pratik Prajapati, fairness analysis analyst at Ambit Capital. “The numbers are fairly robust, and the corporate has proven significant effectivity on the price facet.”
The corporate’s earnings earlier than curiosity, taxes, depreciation and amortization rose 27% y-o-y to ₹126 core within the June quarter, up from ₹99 crore in the identical interval a yr in the past.
Buyers cheered V-Mart’s quarterly outcomes, as the corporate’s shares settled 5.7% greater at ₹807.40 apiece on the BSE on Thursday.
The subdued same-store gross sales progress mirrors a broader consumption slowdown in discretionary retail. Avenue Supermarts Ltd (DMart) posted a muted same-store gross sales progress (SSSG) of simply 3.9% in Q1 FY26, whereas Consumers Cease’s same-store gross sales contracted 5.9% throughout the identical interval, reflecting related softness in footfalls and demand throughout organized worth and premium retail.
Identical retailer gross sales progress measures the year-on-year income progress from shops which were operational for at the very least a yr, and is a key metric of an organization’s operational effectivity and monetary well being.
V-Mart added 15 new shops and shut two underperformers throughout the quarter, taking its whole retailer depend to 510 throughout 27 states and Union Territories. Whereas retailer growth continues, the corporate can also be specializing in enhancing efficiency at current places.
V-Mart’s growth comes at a time when competitors within the worth vogue section is intensifying, notably in smaller cities. Rivals like V2 Retail are scaling quickly, which has added 26 new shops within the June quarter alone and is contemplating revising its FY26 growth steering upwards from the sooner goal of 100 shops. The corporate runs over 215 shops, with a stronghold in japanese markets like Bihar, Uttar Pradesh and Odisha the place V-Mart additionally has a dominant presence. This parallel growth alerts rising competitors for pockets share amongst price-sensitive shoppers in India’s smaller cities.
Nonetheless, V2 Retail and Vishal Mega Mart have but to announce their June quarter earnings.
Based in 2002 by Lalit Agarwal, V-Mart Retail has grown into one in every of India’s main worth vogue retailers, catering primarily to middle- and lower-income households in tier-2, tier-3, and tier-4 cities. With a stronghold in North and East India, the corporate operates a series of inexpensive vogue and life-style shops providing attire, footwear and equipment for the complete household. Through the years, V-Mart has constructed a status for serving price-sensitive shoppers in small cities with a deal with environment friendly retailer operations, localized merchandising and personal labels.
A key a part of V-Mart’s broader growth technique has been the mixing of Limitless, the retail chain it acquired in 2021 from Arvind Life-style in a ₹150 crore deal. The acquisition added 74 large-format shops throughout South India, giving V-Mart a prepared presence in city and semi-urban markets in Tamil Nadu, Karnataka, Andhra Pradesh and Telangana—areas the place it beforehand had little to no footprint. The corporate stated the format has now turned worthwhile and, within the June quarter, carried out on par with its legacy V-Mart shops, with each contributing equally to adjusted same-store gross sales progress.
Vogue continues to be the core class, with personal labels making up 64% of attire gross sales. V-Mart’s newest collections, focused at Gen Z shoppers, included influencer-led designs and streetwear-inspired types that carried out effectively in newly-launched retailer codecs.
“The rebound in revenue and margin growth is a direct final result of the backend optimisation and sharper merchandise curation. We’ve targeted on high quality, match, and development alignment, notably for Gen Z consumers in Tier II and III cities,” stated Lalit Agarwal, managing director of V-Mart Retail, within the firm’s FY25 annual report.
“Our renewed deal with product curation, buyer insights and disciplined execution helps us navigate the market challenges and ship worthwhile progress,” the corporate stated.
Wanting forward, Prajapati stated the festive season and macro traits might additional enhance efficiency. “This yr’s Diwali may be robust because the earnings tax advantages will begin displaying within the second half. CPI inflation has eased a bit and family financial savings are seemingly to enhance, which implies shoppers might have extra to spend,” he stated.