Q1 2026 V-mart Retail Ltd Earnings Call Transcript
Key Points
- V-Mart Retail Ltd (BOM:534976) reported a 13% year-on-year revenue growth, driven by increased footfalls and memo count.
- The company achieved a 60 basis points improvement in gross margins, excluding LimeRoad, due to better full price sell-throughs and liquidation of old inventory.
- EBITDA margin, excluding LimeRoad, improved by 80 basis points year-on-year, reflecting operational efficiencies.
- V-Mart Retail Ltd plans to expand its store footprint by adding 65 new stores this year, targeting a 12% to 15% net area addition annually.
- The company generated INR 109 crores in free cash flow this quarter, attributed to efficient inventory management.
- Customer sentiment remains moderate, with no significant increase in consumption despite positive market conditions.
- The company faces increased competition from both national and regional players, impacting market dynamics.
- Same-store sales growth has moderated, with challenges in certain regions like the Eastern region near the Bangladesh border.
- Lease rental inflation is a concern, with new store rentals being approximately 5% higher than existing ones.
- The company is cautious about maintaining EBITDA margins, focusing on rupee margins rather than percentage margins, which may not lead to significant margin expansion.
Ladies and gentlemen, good day and welcome to the V-Mart Retail Q1 FY26 earnings conference call hosted by Avendus Spark. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Tejash Shah from Avendus Spark. Thank you, and over to you.
Thank you, Vishakha. Good morning, everyone. On behalf of Avendus Spark, it's our pleasure to host the 1Q FY26 earnings conference call of V-Mart Retail Limited. Joining us today from the management team are Mr. Lalit Agarwal, Managing Director; Mr. Anand Agarwal, CFO.
I'll now hand over the call to the management for the opening remarks, followed by the Q&A session. Thank you.
Good morning, everyone. Good morning, Tejash. Thank you so much for introducing us and hosting us. Wonderful to hear you back and come back to you with our Q1 analysis. So nothing very different.
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