V-Mart Retail Q1 FY27: Revenue Up 23% with 9% Same-Store Sales Growth
V-Mart Retail reported Q1 FY27 revenue growth of 23% YoY, with same-store sales growth (SSG) at 9%. The company added 15 stores, expanding its network to 591. Gross margins declined 80 bps to 34.5%, while EBITDA grew 27% to ₹161 crore. Management expects mid-to-high single-digit SSG for the year.
The announcement details solid financial performance with good revenue and SSG growth, along with expansion plans. However, it also notes a decline in gross margins and potential short-term impacts in Q2, indicating a moderate rather than high impact.
The company reported strong revenue growth of 23% and 9% same-store sales growth, marking its 11th consecutive quarter of sustained growth. Improvements in operational efficiency, EBITDA growth, and a healthy store expansion pipeline contribute to a positive sentiment.
V-Mart Retail Limited has announced its Q1 FY27 earnings, reporting a robust 23% year-on-year revenue growth, supported by a 9% same-store sales growth (SSG). This marks the 11th consecutive quarter of sustained growth for the company.
The company's performance was driven by improved merchandising, disciplined store expansion, and sharper operating controls. V-Mart achieved an 8% SSG, while its Unlimited format in South India significantly outperformed with a 13% SSG and 33% revenue growth.
Despite a late summer season start and the impact of Adhik Maas, customer engagement remained healthy, with footfalls up 39% and average selling price (ASP) for apparel growing by 2%. The company is focusing on enhancing product offerings, improving store execution, and maintaining a disciplined expansion strategy, evaluating each store based on catchment, ROI, and throughput.
Gross margins saw a decline of 80 basis points to 34.5%, primarily due to a mix change and regular provision on aged inventory. However, inventory productivity improved, with inventory days reducing by 8% year-on-year to 86 days.
Total expenses increased by 15%, well below the revenue growth, resulting in operating leverage. The LimeRoad marketplace continued to improve, with losses reducing by 39% year-on-year. Pre-IndAS EBITDA grew 36% to ₹83 crore, and reported EBITDA grew 27% to ₹161 crore.
V-Mart added 15 new stores in the quarter, bringing its total network to 591 stores across 335 cities. The expansion guidance for the year remains unchanged at 90+ new stores.
Looking ahead, the company anticipates a negative impact on sales and margins in Q2 FY27 due to the shift of Durga Puja into Q3, but expects recovery with good festive growth in the subsequent quarter. Management expects mid-to-high single-digit SSG for the full year.
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See the model portfoliosA plain-language summary of a public exchange filing by V-Mart Retail Limited. Read the original for the full detail.