V-Mart Retail reported a strong Q3 FY26 performance, with PAT increasing by 23% year-on-year to ₹88 crore. Despite weather-related disruptions and a delayed winter, the company maintained strict expense control and saw improved gross margins. V-Mart added 23 new stores during the quarter, bringing the total store count to 554. The company remains cautiously optimistic about future growth, supported by stable inflation and improving rural incomes.
Financial Performance Highlights
V-Mart Retail announced its Q3 FY26 results, showcasing a robust financial delivery despite mixed signals in the market. Key highlights include:
- PAT Growth: A 23% year-on-year increase in Profit After Tax (PAT) to ₹88 crore.
- EBITDA Growth: Reported EBITDA grew by 22% year-on-year to ₹210 crore, with margins expanding by 190 bps to 18.6%.
- Revenue Growth: Revenue increased, driven by festive timing and strong performance in the South market.
- Gross Margins: Gross margins remained stable year-on-year, with offline gross margins expanding by 70 bps.
Operational Overview
V-Mart continued its expansion strategy, adding 23 new stores in Q3 FY26, bringing the total store count to 554. New stores are ramping up faster than historical averages, reinforcing confidence in site selection and brand relevance. The company is focused on operational efficiencies, cost control, and inventory management.
Strategic Initiatives
V-Mart is focused on several strategic initiatives to drive future growth and improve profitability:
- Private Label Expansion: Increasing the share of private labels, which currently account for almost 70% of sales.
- Technology Upgrades: Continuing to upgrade systems and processes, including planning, merchandising, and inventory management.
- Omni-Enablement: Leveraging LimeRoad as a platform for omni-channel capabilities.
Market Outlook
V-Mart remains cautiously optimistic about the future, with demand expected to evolve gradually, supported by stable inflation and improving rural incomes. The company is vigilant about potential reversals or expense increases and is focused on building for scale and sustainability.
Expansion Plans
V-Mart aims to end the year with 75+ new store additions. Expansion plans in South India territory remain intact. The company will penetrate more into its existing network of India.
Source: BSE
