V-Mart Retail Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript V-Mart Retail Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
V-Mart Retail reported 23% year-on-year revenue growth with 9% same-store-sales growth for Q1 FY27, marking its 11th consecutive quarter of positive like-for-like growth. Pre-IndAS EBITDA grew 36% to Rs 83 crore with margin expanding to 7.6%, while gross margin declined 80 bps to 34.5% due to mix change and inventory provisioning. Management also discussed raw material inflation, minimum wage hikes in certain states, and continued expansion in the Unlimited format in South India.
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Numbers mentioned
Revenue growth: 23% (Q1 FY27)
p. 4
“I think overall we did grow, overall, our growth of 23% with 9% like-for-like growth has been there”
Lalit Agarwal, page 4 of the filed PDF · View the filing
Same-store sales growth: 9% (Q1 FY27)
p. 7
“Quarter 1 has been a very strong broad-based growth quarter, with overall revenues growing 23% year-on-year, and the SSG is also growing 9%”
Anand Agarwal, page 7 of the filed PDF · View the filing
Footfalls growth: 39% (Q1 FY27)
p. 8
“the customer engagement remained healthy, with footfalls up 39% and the memo count also up by 18% year-on-year”
Anand Agarwal, page 8 of the filed PDF · View the filing
Memo count growth: 18% (Q1 FY27)
p. 8
“the customer engagement remained healthy, with footfalls up 39% and the memo count also up by 18% year-on-year”
Anand Agarwal, page 8 of the filed PDF · View the filing
Apparel ASP growth: 2% (Q1 FY27)
p. 8
“The apparel ASPs also grew by 2%, reflecting better customer connect, which was led by product improvements and also improved operations”
Anand Agarwal, page 8 of the filed PDF · View the filing
Unlimited revenue growth: 33% (Q1 FY27)
p. 8
“The Unlimited format in South India continued its strong momentum, delivering 33% revenue growth and 40% EBITDA growth for the quarter”
Anand Agarwal, page 8 of the filed PDF · View the filing
Unlimited EBITDA growth: 40% (Q1 FY27)
p. 8
“The Unlimited format in South India continued its strong momentum, delivering 33% revenue growth and 40% EBITDA growth for the quarter”
Anand Agarwal, page 8 of the filed PDF · View the filing
Unlimited sales per square foot: INR 710 per square feet (Q1 FY27)
p. 8
“with sales per square feet reaching INR 710 per square feet, which is also up 18% year-on-year”
Anand Agarwal, page 8 of the filed PDF · View the filing
Gross margin: 34.5% (Q1 FY27)
p. 8
“Gross margin for the quarter declined 80 bps to 34.5%, primarily on account of a mix change and regular provision on aged inventory”
Anand Agarwal, page 8 of the filed PDF · View the filing
Days of inventory: 86 days (Q1 FY27)
p. 8
“the inventory productivity continued to improve with overall days of inventory reducing by 8% year-on-year to 86 days”
Anand Agarwal, page 8 of the filed PDF · View the filing
Inventory per store: around INR 1.5 crore (Q1 FY27)
p. 8
“the inventory per store also decreased by 5% to around INR 1.5 crore at quarter end”
Anand Agarwal, page 8 of the filed PDF · View the filing
Total expenses growth: 15% (Q1 FY27)
p. 9
“Total expenses increased by 15%, well below the 23% revenue growth, providing a comfortable 150 bps operating leverage”
Anand Agarwal, page 9 of the filed PDF · View the filing
LimeRoad losses reduction: 39% year-on-year, 7% quarter-on-quarter (Q1 FY27)
p. 9
“The LimeRoad marketplace also continued to improve, with losses reducing by 39% year-on-year and 7% quarter-on-quarter, despite an 18% increase in NMVs”
Anand Agarwal, page 9 of the filed PDF · View the filing
Pre-IndAS EBITDA: INR 83 crore (Q1 FY27)
p. 9
“our pre-IndAS EBITDA grew 36% year-on-year to INR 83 crore, with margin expanding to 7.6% from 6.9%”
Anand Agarwal, page 9 of the filed PDF · View the filing
Post-IndAS EBITDA: INR 161 crore (Q1 FY27)
p. 9
“On a reported basis, post-IndAS EBITDA grew 27% year-on-year to INR 161 crore, with margins expanding by 50 bps to 14.8%”
Anand Agarwal, page 9 of the filed PDF · View the filing
PBT growth: 39% year-on-year to INR 60 crore (Q1 FY27)
p. 9
“This translated into a 39% year-on-year growth in PBT to INR 60 crore and 41% year-on-year growth in PAT to INR 47 crore”
Anand Agarwal, page 9 of the filed PDF · View the filing
PAT growth: 41% year-on-year to INR 47 crore (Q1 FY27)
p. 9
“This translated into a 39% year-on-year growth in PBT to INR 60 crore and 41% year-on-year growth in PAT to INR 47 crore”
Anand Agarwal, page 9 of the filed PDF · View the filing
Capex: INR 38 crores (Q1 FY27)
p. 9
“CAPEX for the quarter stood at INR 38 crores, primarily towards new store additions and selective refurbishments”
Anand Agarwal, page 9 of the filed PDF · View the filing
Cash flow generated: INR 76 crores (Q1 FY27)
p. 9
“The business generated positive cash flows of INR 76 crores”
Anand Agarwal, page 9 of the filed PDF · View the filing
New store additions: 15 added, 1 closed (Q1 FY27)
p. 9
“we added 15 stores for this quarter and closed one, taking our total network strength to 591 across 335 cities, encompassing now 51 lakh square feet”
Anand Agarwal, page 9 of the filed PDF · View the filing
Raw material price increase: around 10% (current incremental orders)
p. 14
“We are seeing maybe around 10% rise in the overall raw material prices, out of which some prices are being passed on”
Lalit Agarwal, page 14 of the filed PDF · View the filing
Karnataka vendor exposure: less than 5%
p. 13
“Not too much. Maybe less than 5%.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Store expansion — 90+ stores · FY27
stated firmly by Anand Agarwal
p. 9
“Our expansion guidance for the year remains unchanged at 90+ as we continue expansion with a healthy store pipeline in place”
Anand Agarwal, page 9 of the filed PDF · View the filing
Store closures — 8 to 10 stores · FY27
stated as an aspiration by Lalit Agarwal
p. 12
“Yes, you may see 8 to 10 stores getting closed also this year.”
Lalit Agarwal, page 12 of the filed PDF · View the filing
Same-store sales growth — mid-to-high single digit · FY27
stated as an aspiration by Lalit Agarwal
p. 15
“Mid-to-high single digit, yes.”
Lalit Agarwal, page 15 of the filed PDF · View the filing
Unlimited store openings
stated firmly by Lalit Agarwal
p. 16
“Yes. Certainly, we will have to see higher number of store opening compared to last year from the Southern market.”
Lalit Agarwal, page 16 of the filed PDF · View the filing
ASP increase — 3%-5%
stated as an aspiration by Lalit Agarwal
p. 17
“So, we should not exceed 3%-5%. A range between 3%-5% of ASP increase is what something that we are focusing on”
Lalit Agarwal, page 17 of the filed PDF · View the filing
Q2/Q3 sales and margin impact from Durga Puja shift — Q2 FY27
stated firmly by Anand Agarwal
p. 9
“there should be a negative impact on both sales and margins for the quarter versus last year. This is purely a timing issue and should be recovered very well with good festive to festive growth in Quarter 3.”
Anand Agarwal, page 9 of the filed PDF · View the filing
SSG needed for margin expansion — 3%-4%
stated conditionally by Anand Agarwal
p. 15
“what we have analyzed is that 3%-4% of SSG is enough to offset the inflationary pressures that we see”
Anand Agarwal, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the mix change reflects customer preference rather than deliberate stock changes, and provisioning follows a longstanding consistent policy; the two are not in equal proportion but not very different either.
Answered by Anand Agarwal
Asked by Videesha Sheth: What drove the gross margin decline - mix change or provisioning, and in what proportion?
p. 10
“It's not equal proportion. It will vary from time to time. But the mix change is more from a customer perspective.”
Anand Agarwal, page 10 of the filed PDF · View the filing
Management attributed part of it to past counting errors and increased competition causing customers to shop across more stores before purchasing, while memo count still grew 18%.
Answered by Anand Agarwal
Asked by Videesha Sheth: What has driven the decline in conversion rate?
p. 10
“we are seeing far. Far greater competition in the market. We are seeing customers going across the market.”
Anand Agarwal, page 10 of the filed PDF · View the filing
Management said crude-linked cost increases are being partly absorbed through efficiency gains and partly passed on cautiously, without large price hikes.
Answered by Lalit Agarwal
Asked by Videesha Sheth: Has V-Mart undertaken any price hikes to pass on RM inflation?
p. 11
“there will be a crude impact, which will come into the picture, and it has come into the picture, and already a part of the cost ecosystem”
Lalit Agarwal, page 11 of the filed PDF · View the filing
Management confirmed it is a gross number and some stores could be closed this year.
Answered by Lalit Agarwal
Asked by Rahul Agarwal: Is the 90+ store guidance a net or gross number, and will stores be closed?
p. 12
“Definitely it will be a gross number. When we are saying plus it may go a little extended.”
Lalit Agarwal, page 12 of the filed PDF · View the filing
Management said two of three months of the wage increase are already included in this quarter, with more increases still to come, and Karnataka's hike remains under stay.
Answered by Lalit Agarwal
Asked by Sameer Gupta: How much of the minimum wage hike impact is already reflected in this quarter's numbers versus what remains?
p. 13
“I think out of the three months we have already taken in the wage bill of two months, already included in this last quarter.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Management confirmed the Karnataka wage hike is on stay and not yet implemented or provisioned for.
Answered by Lalit Agarwal
Asked by Sameer Gupta: Is Karnataka's minimum wage increase currently affecting stores or vendor costs?
p. 13
“As of now it has not been implemented. It is on stay.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Management indicated an aim to improve on last year's SSG, characterizing it as mid-to-high single digit.
Answered by Lalit Agarwal
Asked by Ashish: What SSG does management expect for the year?
p. 14
“Yes, we would definitely want to continue and better the last year's SSG that we had.”
Lalit Agarwal, page 14 of the filed PDF · View the filing
Management said historically 3-4% SSG has been sufficient to offset inflationary cost pressures given the largely fixed cost base.
Answered by Anand Agarwal
Asked by Hitendra Pradhan: What SSSG is needed for operating leverage to offset inflation over the next two-three years?
p. 15
“what we have analyzed is that 3%-4% of SSG is enough to offset the inflationary pressures that we see”
Anand Agarwal, page 15 of the filed PDF · View the filing
Management agreed Unlimited looks more attractive and said they are working to accelerate the pace of expansion there, expecting more store openings than last year.
Answered by Lalit Agarwal
Asked by Avinash Karumanchi: Should store additions accelerate more in Unlimited given its strong performance versus core V-Mart?
p. 16
“Definitely, we would want to grow a little more larger there. It is also very challenging in Unlimited market to make a very good profitable expansion.”
Lalit Agarwal, page 16 of the filed PDF · View the filing
Management said margins are gradually converging and they expect almost similar margins from both formats going forward.
Answered by Lalit Agarwal
Asked by Avinash Karumanchi: Will the EBITDA margin gap between Unlimited and core V-Mart close over the next couple of years?
p. 16
“We are expecting almost similar margin should come in from both Unlimited as well as the V-Mart stores.”
Lalit Agarwal, page 16 of the filed PDF · View the filing
Management said gross margin risk is not very high since they prioritize rupee gross margin over percentage, but flagged supply chain consistency as a bigger risk given crude scarcity.
Answered by Lalit Agarwal
Asked by Kunal Bhatia: What is the risk to gross margin for the year given raw material cost pressures?
p. 17
“the risk over the gross margin may not be very high, but the risk over the supply chain could be little higher”
Lalit Agarwal, page 17 of the filed PDF · View the filing
Risks flagged
Non-uniform monsoon impact on demand across states
p. 4
“there could be states where we would see higher rain causing floods. There may be states where you would see a little bit of higher deficiency in monsoon, which we are already witnessing.”
Lalit Agarwal, page 4 of the filed PDF · View the filing
Geopolitical volatility affecting raw material and supply chain costs
p. 4
“we are seeing that there is a lot of volatility in the raw material and the supply chain cost which has and can influence the sentiment or even our pricing”
Lalit Agarwal, page 4 of the filed PDF · View the filing
Raw material inflation from crude oil and cotton prices
p. 14
“there is a price increase in the raw material or the yarn prices or the product prices, both from a crude perspective as well as the cotton prices have gone up”
Lalit Agarwal, page 14 of the filed PDF · View the filing
Minimum wage hikes impacting employee costs
p. 13
“in the shorter term immediately, the minimum wages is impacting our salary bill and our wage bill”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Supply chain consistency risk from crude scarcity and unstable pricing
p. 17
“That is going to be a little higher because the scarcity of crude continues. The pricing remains really unstable.”
Lalit Agarwal, page 17 of the filed PDF · View the filing
Household budget sensitivity and price comparison by consumers
p. 3
“There is sensitivity on the household budget, no doubt about it. There are definitely comparisons that people are doing in both prices as well as the quality.”
Lalit Agarwal, page 3 of the filed PDF · View the filing
Declining conversion rate due to increased competition
p. 10
“we are seeing far. Far greater competition in the market. We are seeing customers going across the market.”
Anand Agarwal, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.