V-Mart Retail Limited reported a strong 24% year-on-year sales growth for the quarter ending March 2026, driven by record new store openings and consistent like-to-like sales performance. Despite inflationary pressures and geopolitical challenges, the company maintained momentum, achieving a 56% increase in EBITDA to INR 106 crores. Management remains focused on operational efficiency, AI-led supply chain improvements, and long-term expansion as it scales its footprint across India.
Financial Performance Overview
V-Mart delivered a robust performance in the fourth quarter of fiscal 2026. The company achieved a total sales growth of 24%, bolstered by the addition of 29 new stores—the highest quarterly expansion in its history. Like-to-like (LTL) sales growth stood at 12%, marking the 10th consecutive quarter of sustained growth in this metric. Full-year Profit After Tax (PAT) surged by 6x to INR 124 crores, reflecting improved operational efficiency.
Operational Highlights and Strategy
Management emphasized that the company is successfully navigating inflationary pressures by optimizing fabric mixes and leveraging AI-driven supply chain solutions. The LimeRoad online marketplace has seen significant improvement, with losses reduced by 70% compared to the previous year. Furthermore, the company has prioritized inventory health, resulting in a 13% year-on-year reduction in per-store inventory levels.
Future Outlook and Expansion
Looking ahead, V-Mart continues to target 13% to 15% annual area expansion. While raw material costs—specifically those tied to crude oil and yarn—remain a consideration, the company is focusing on enhancing its product mix to protect margins. Capital expenditure for the upcoming year is estimated at INR 170 to INR 180 crores, with a strategic shift toward increasing tech-led investments and AI-driven operational workflows to drive future scalability.
Focus on Consumer Loyalty
A core pillar of V-Mart’s strategy is its repeat customer base, which accounts for approximately 72% of its sales. The leadership team remains dedicated to providing aspirational yet affordable fashion to its consumers. By maintaining a balance between competitive pricing and high-quality product offerings, V-Mart intends to capture additional market share from unorganized retail players in the coming fiscal year.
Source: BSE
