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Earnings Call Transcript

V-Mart Retail Earnings Call Transcript: Key Takeaways

V-Mart shows resilience with 23% revenue growth, but faces raw material inflation and margin pressure. Management remains cautious on the impact of uneven monsoon and rising wage costs.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth23% YoY revenue growth; organic SSSG at 9%.
MarginsGross margin declined 80 bps due to inventory provisioning and mix.
Demand visibilityPositive trends in smaller towns; youth-led fashion consumption increasing.
Management confidenceBalanced; optimistic on long-term but cautious on near-term inflation.

Growth

Revenue grew 23% YoY; same-store sales growth (SSSG) at 9%, marking 11 consecutive quarters of growth.

Outlook

Guidance of 90+ new store openings for FY27; targeting mid-to-high single-digit SSSG.

Risks

EBITDA margin contraction, potential 10% raw material cost spike, and minimum wage hikes in key states.

Last quarter's promises, checked

Delivered

  • Guided 13-15% area addition → delivered 24% sales growth (= BEAT)
  • Guided sustained SSSG → delivered 12% LTL growth (= BEAT)
  • Guided positive cash flows → delivered INR 33 Cr YTD (= BEAT)

Partly delivered

  • Guided INR 170-180 Cr Capex → delivered INR 159 Cr YTD (= PARTIAL)

Missed

  • Guided pre-COVID PAT levels (~4%) → delivered 3.3% PAT (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: VMART. Summary written with AI assistance from the document.

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V-Mart Retail Ltd: key numbers

Share price
₹760.10
Market cap
₹6,049 Cr
Revenue (annual)
₹3,789 Cr
Net profit (annual)
₹124.0 Cr
P/E (TTM)
44.0×Sector 67.6×
Promoter holding
44.15%-0.05% QoQ
FII holding
16.47%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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13:20 IST BSE
Financial Results

V-Mart Retail Q1 FY27 Results: Net Profit ₹47.2 Cr, Up 40.5% YoY

V-Mart Retail Ltd reported revenue from operations of ₹1,089 Cr (+23.0% YoY) and net profit of ₹47.2 Cr (+40.5% YoY) for Q1 FY27.

Key figure
Net profit ₹47.2 Cr · +40.5% YoY