Q3 2026 V-mart Retail Ltd Earnings Call Transcript
Key Points
- V-Mart Retail Ltd (BOM:534976) reported a strong financial performance despite weather-related disruptions, with a 23% year-on-year increase in Q3 PAT to INR88 crore.
- The company maintained stable gross margins year-on-year, with an improvement in offline business margins by 70 bps, driven by better inventory health and reduced discounting.
- V-Mart Retail Ltd (BOM:534976) added 23 new stores during the quarter, bringing the total store count to 554, with new stores ramping up faster than historical averages.
- The company continues to focus on operational efficiencies, resulting in a 22% year-on-year growth in post Ind AS EBITDA, with margins expanding by 190 bps to 18.6%.
- V-Mart Retail Ltd (BOM:534976) remains virtually debt-free, with expansions funded by internal accruals, reflecting strong capital discipline and a robust balance sheet.
- The delay in winter onset and political disturbances in certain regions negatively impacted sales, particularly in North and West India.
- Despite a positive festive-led recovery, the company faced challenges with erratic weather patterns affecting demand for winter categories.
- V-Mart Retail Ltd (BOM:534976) experienced a slight increase in inventory days to 95, attributed to strategic changes in FMCG inventory.
- The company reported a 40% decline in LimeRoad commission income, impacting gross margins, although it now forms a smaller share of overall revenue.
- Same-store sales growth (SSSG) has been below nominal GDP levels, with challenges in achieving higher growth in mature markets.
Ladies and gentlemen, good day, and welcome to the V-Mart Q3 FY26 earnings conference call hosted by Motilal Oswal Financial Services. (Operator Instructions) Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Aditya Bansal. Thank you, and over to you, sir.
Thanks, Arin. Good morning, everyone. On behalf of Motilal Financial Services, I welcome you to V-Mart's 3Q FY26 earnings call. From the management, we have Mr. Lalit Agarwal, Managing Director; and Mr. Anand Agarwal, CFO. Without further delay, I will now hand the call over to the management for their opening remarks. Over to you, Lalit.
Lalit sir, please go ahead and please unmute your line in case if you are on mute.
Hello. Good morning, everyone, and thank you all for joining us today. Once again, we are in a call for the best -- one
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