V-Mart Q1FY26 Standalone Profit Soars to ₹33.60 Cr, Reflecting Strong Retail Recovery and Strategic Cost Control

Mumbai, 24 July 2025: V-Mart Retail Limited has released its standalone financial results for the quarter ended 30 June 2025 (Q1FY26), posting a significant 176.8% year-on-year surge in net profit to ₹33.60 crore, compared to ₹12.14 crore in Q1FY25. Sequentially, the profit rose from ₹18.51 crore in Q4FY25, signalling operational momentum and improved efficiency. The sharp rise in earnings is supported by robust performance in the retail segment and prudent cost control. Following the 3:1 bonus issue, basic EPS stood at ₹4.23, while total income grew by 12.3% YoY to ₹888.15 crore.

Following the release of its robust Q1FY26 standalone results, V-Mart Retail Ltd’s share price surged by 6.45% to ₹813.00 as of 2:15 PM IST on 24 July 2025, rising by ₹49.25 from the previous close. The stock opened at ₹773.25, touched an intraday high of ₹856.00, and recorded a low of ₹763.00. The sharp upward movement reflects strong investor sentiment driven by the company’s profit growth and positive retail outlook

Standalone Revenue Sees Strong Uptick Amidst Strategic Retail Focus

The company reported a 12.6% YoY growth in standalone revenue from operations, reaching ₹885.22 crore, up from ₹786.08 crore in Q1FY25. Compared to Q4FY25, the revenue jumped by 13.5%. Standalone profit before tax increased sharply to ₹42.94 crore, from ₹9.32 crore in Q1FY25—a staggering 360.5% growth. Total expenses rose to ₹845.21 crore, reflecting an 8.2% YoY increase, which was well-contained compared to revenue growth.

Retail Trade Leads Segment Revenue While Digital Marketplace Struggles

Under the segment-wise breakup, the retail trade segment contributed ₹879.06 crore in revenue and ₹52.74 crore in result, reinforcing its leadership in V-Mart’s portfolio. On the other hand, the digital marketplace reported ₹8.13 crore in revenue but faced a loss of ₹5.06 crore. Inter-segment revenue stood at ₹1.97 crore, with the total segment revenue amounting to ₹887.19 crore and total result at ₹47.68 crore, on a standalone basis.

Balance Sheet Strengthens After Bonus Issue and ESOP Allotments

As of 30 June 2025, the company’s total standalone assets were ₹2,313.08 crore, while total liabilities stood at ₹1,461.33 crore, resulting in a net worth of ₹851.75 crore. During Q1FY26, a 3:1 bonus share issue was executed, increasing the paid-up capital from ₹19.80 crore to ₹79.37 crore. Additionally, 43,910 equity shares were allotted under the ESOP Schemes 2012 and 2020.

Standalone Profit and EPS Growth Confirm Strategic Execution Payoff

On a standalone basis, net profit rose to ₹33.60 crore, up from ₹12.14 crore YoY, while basic and diluted EPS increased to ₹4.23 and ₹4.21 respectively (restated post-bonus as per Ind AS 33). These gains underscore the impact of post-COVID inventory normalisation and a refined store strategy.

Key Metrics Show Solid Financial Standing and Improved Profitability

Market capitalisation is ₹6,400.3 crore, PE TTM stands at 139.8, and the PEG TTM is 0.9, indicating strong earnings relative to growth. Price to Book ratio is 7.9, while institutional holding is 49.8%, despite a marginal decline of 0.61%. While revenue growth (YoY and TTM) at 16.7% and 16.8% remains below the industry median, net profit growth YoY is a market-leading 147.6%, with TTM growth at 147.3%. Operational margins—8.7% for the quarter and 11.6% TTM—lag behind the sector, but the Piotroski Score of 7 reflects solid fundamentals. ROE and RoA are 5.6% and 1.9%, respectively, both above the industry median. In terms of performance, relative returns are -4.7% vs Nifty50 and -10.1% vs the sector this quarter.

Strong Foundation Positions V-Mart for Stable FY26 Performance

Despite sector-wide cost pressures and digital business losses, V-Mart’s core retail strength and cost discipline offer a favourable outlook for FY26. The standalone performance shows consistent improvement in revenue, profit, and investor value, suggesting continued resilience in India’s Tier II and III retail markets.

V-Mart Retail Limited is a leading value retail chain in India, primarily catering to Tier II and Tier III cities. Headquartered in Gurugram, it operates across the country through its fashion and general merchandise stores. Listed on both BSE and NSE, the company focuses on affordable, quality products for middle-income consumers in emerging markets.

REF:https://nsearchives.nseindia.com/corporate/VMART_24072025132505_FinalOutcome.pdf

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