V-Mart Retail has announced its financial results for the first quarter of FY27, reporting a robust 23% year-on-year increase in revenue, reaching ₹5,046 crore. Like-for-like sales also grew by a healthy 9%, marking the 11th consecutive quarter of sustained growth. The company’s gross margin stood at 34.5%, with a strategic focus on rupee gross margin improvement and disciplined expansion.
V-Mart Retail Reports Strong Q1 FY27 Performance
V-Mart Retail Limited has announced its financial results for the first quarter ended July 31, 2026, showcasing significant year-on-year growth. The company reported a consolidated revenue of ₹5,046 crore, an increase of 23% compared to the same period last year. This strong revenue performance underscores the company’s ongoing growth trajectory and effective business strategies.
Sustained Like-for-Like Growth
A key highlight of the quarter was the consistent like-for-like (LFL) sales growth, which stood at 9%. This marks the 11th consecutive quarter of sustained LFL growth, reflecting continued progress in merchandising, product enhancements, disciplined store expansion, and sharper operating controls. V-Mart Retail also saw an 8% same-store sales growth for its core business, while the Unlimited format outperformed with a 13% same-store sales growth.
Margin and Profitability Focus
The company’s gross margin for the quarter was reported at 34.5%, a decline of 80 basis points, primarily attributed to a change in product mix and regular provision on aged inventory. However, V-Mart emphasized its focus on improving the rupee gross margin rather than just the percentage gross margin. Total expenses increased by 15%, which was below the revenue growth, leading to a comfortable 150 basis points of operating leverage. Post-IndAS EBITDA grew 27% year-on-year to ₹161 crore. Profit Before Tax (PBT) grew by 39% to ₹60 crore, and Profit After Tax (PAT) increased by 41% to ₹47 crore.
Network Expansion and Strategy
During the quarter, V-Mart added 15 new stores and closed one, taking its total network strength to 591 stores across 335 cities, covering 51 lakh square feet. The company reiterated its expansion guidance of 90+ stores for the full year, maintaining a disciplined approach to store openings, focusing on rentals, space productivity, and profitability. The Unlimited format, particularly in South India, showed strong momentum with 33% revenue growth and 40% EBITDA growth.
Outlook and Initiatives
Looking ahead, V-Mart Retail indicated that Quarter 2 might see a negative impact on sales and margins due to the timing of Durga Puja. However, this is expected to recover in Quarter 3 with strong festive growth. The company is actively working on enhancing customer proposition, driving efficiencies, and leveraging technology and AI for better retail decisions, including demand forecasting and assortment planning. Raw material price inflation is being managed through tactical moves, efficiency improvements, and a cautious approach to price increases, aiming for a 3%-5% ASP increase.
Source: BSE
