V-Mart Retail leaves FY25 in style but the competition threat remains

Copyright © HT Digital Streams Limit all rights reserved. Markets V-Mart Retail is looking for net 60-65 stores in FY26. (Beeld: Pixabay) Summary V-Mart’s recovery momentum of an unfavorable rural cycle remains on track with aggressive store expansion by many retailers, rising competition in value retail is an important investors in V-Mart Retail LTD stocks, excited about its business update for the March Quarter (Q4FY25) and probably expect a good year. V-Mart’s shares rose by more than 10% on Wednesday. This comes after the share dropped 35% from its 52 -week peak of £ 4,520 each, seen on October 31. So valuations were relatively cheaper. The year-on-year growth in total turnover, which includes V-Mart and Limeroad Digital Marketplace, was 17%during the third quarter. Also in 9mfy25 the growth was 17%. Storage supplements also helped the Q4 growth. In addition, the growth of the sale of the same stores (SSSG) amounted to 8% versus 10% and 15% in Q3 and Q2 respectively. This SSSG is for combined V-Mart and unlimited stores. SSSG measures comparable sales over a period of time. SSSG for V-Mart (Core), which means only the V-Mart format, stood at 7% in Q4, compared to 10% in Q3. “We believe that less serious winters in Northern India may be a reason for moderation in SSSG for V-Mart (Core),” says Motilal Owal Financial Services. Certainly, FY25 was characterized by decent growth and robust revenue improvement for V-Mart. The report that EBITDA was up to £ 309 for 9mfy25 to 79% year-on-year. The exclusion of Limeroad, FY25 SSSG and turnover growth was 11% and 8% respectively. According to HDFC Securities, the recovery momentum of V-MART from an unfavorable rural cycle and the allocation of capital allocation is underway. “Football/sales densities still hold back to normality; rental accounts are calibrated downward; WC (working capital) pain relieves pain; and initial efforts to increase the share of the consumer (by introducing new categories) are encouraging and is likely to improve the sales density,” an HDFC report said on March 20. One challenge is that the base is now relatively high, and how the growth comes out is key. In an interview with CNBC TV18, Lalit Agarwal, founder and managing director of V-Mart Retail, said the company was looking for net 60-65 stores in FY26 and aiming for double-digit growth. It opened net 53 stores in FY25, which took the total score to 497 at the end of the FY25. Competition is another concern. As Motilal Oswal points out, “With aggressive store expansion by many retailers, rising competition in value retail remains an important thing to notice, given the low profitability of V-Mart.” Despite Wednesday’s profits, the shares of V-Mart so far in 2025 are still about 16% lower amid the broader market of the market. Also read: Musical chairs in the retail: Top Executors exchange businesses as competition warms, growth delays all business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Mark to Maket #Markets Premium Mint Specials