V-Mart Retail Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript V-Mart Retail Ltd filed with BSE on 13 May 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 reported total sales growth of 24% in Q4 FY26 with like-to-like growth of 12%, opening 29 new stores during the quarter, and EBITDA grew 56% year-on-year to Rs 106 crores with margins expanding to 10.9%. Management flagged rising input costs from crude-linked yarn and polyester prices, saying inflation of 10-15% in yarn prices could translate to roughly 5-7% in apparel prices, with plans to absorb part of the cost rather than fully pass it to consumers. Full year PAT grew to Rs 124 crores, and management discussed store expansion plans, capex guidance, and rent and margin targets for the coming year.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total sales growth: 24% (Q4 FY26)
p. 6
“leading to a total sales growth of 24%”
Anand Agarwal, page 6 of the filed PDF · View the filing
New store additions: 29 stores (Q4 FY26)
p. 6
“We opened 29 new stores and also delivered an LTL of 12% with V-Mart at 12% and Unlimited at 9%.”
Anand Agarwal, page 6 of the filed PDF · View the filing
Unlimited South revenue growth: 28% (Q4 FY26)
p. 6
“delivering a 28% revenue growth and a 63% increase in EBITDA, supported by strong throughput of new stores added and continuous operational efficiencies”
Anand Agarwal, page 6 of the filed PDF · View the filing
Apparel ASP growth: 5% (Q4 FY26)
p. 6
“We also saw apparel ASPs grow 5% this quarter, primarily due to the better festive mix, lower discounting and improved full price sell-throughs.”
Anand Agarwal, page 6 of the filed PDF · View the filing
Gross margin change: decreased year-on-year by 1% (Q4 FY26)
p. 6
“On the margin front, gross margins actually for the quarter decreased year-on-year by 1%.”
Anand Agarwal, page 6 of the filed PDF · View the filing
EBITDA: INR106 crores (Q4 FY26)
p. 7
“EBITDA grew by 56% year-on-year to INR106 crores with margins expanding by 220 basis points to 10.9%, reflecting better cost absorption and productivity gains.”
Anand Agarwal, page 7 of the filed PDF · View the filing
Adjusted PAT: INR10 crores (Q4 FY26)
p. 7
“The EBITDA growth translated into significant growth in adjusted PAT to INR10 crores.”
Anand Agarwal, page 7 of the filed PDF · View the filing
Full year PAT growth: 6x to INR124 crores (FY26)
p. 7
“PAT has grown by 6x to INR124 crores, reflecting consistency rather than quarter specific effects.”
Anand Agarwal, page 7 of the filed PDF · View the filing
PAT percentage: 3.3% (FY26)
p. 7
“This is our highest ever PAT and the PAT percentage at 3.3% is also now almost reaching the similar levels of PAT of around 4%, 4.5% that we used to enjoy pre-COVID.”
Anand Agarwal, page 7 of the filed PDF · View the filing
Capex: INR37 crores for the quarter, INR159 crores for the full year (Q4 FY26 / FY26)
p. 7
“capex for the quarter stood at INR37 crores, INR159 crores for the full year, primarily towards new store additions, old store refurbishments and technology-led investments.”
Anand Agarwal, page 7 of the filed PDF · View the filing
Free cash flow: positive INR33 crores (FY26)
p. 7
“On a YTD basis, the business generated positive cash flows of INR33 crores versus a negative cash -- free cash flow of INR33 crores in the last year.”
Anand Agarwal, page 7 of the filed PDF · View the filing
Store additions and closures: 92 stores opened, 12 closures (FY26)
p. 8
“We opened 29 stores this quarter and 92 in the full year with 12 closures.”
Anand Agarwal, page 8 of the filed PDF · View the filing
ROC: 14.5% (current)
p. 13
“So right now we are around 14.5% we want to go to 18% and then maybe 20% and above 20%.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Repeat customer sales share: 72%
p. 15
“almost 72% of our sales comes from our repeat customers and the customers who are already shopping with us”
Lalit Agarwal, page 15 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.
Area addition — 13% to 15% area addition every year · FY27
stated firmly by Anand Agarwal
p. 8
“The guidance for the next year remains the same at 13% to 15% area addition every year, net of 1% or 2% mistakes that may need closures year-on-year.”
Anand Agarwal, page 8 of the filed PDF · View the filing
Capex — roughly around INR170 crores, INR180 crores · FY27
stated firmly by Anand Agarwal
p. 7
“For the next year, the capex is estimated at roughly around INR170 crores, INR180 crores.”
Anand Agarwal, page 7 of the filed PDF · View the filing
PAT margin — pre-COVID levels of around 4%, 4.5% · medium term
stated as an aspiration by Anand Agarwal
p. 12
“But definitely our intentions are obviously towards securing that kind of margins in the medium term.”
Anand Agarwal, page 12 of the filed PDF · View the filing
Rent as percentage of sales — 6%, 7% to 7.5%, with 7% as ballpark
stated as an aspiration by Lalit Agarwal
p. 17
“So I think we should be hovering and then we should be comfortable around say 6%, 7% to 7.5% and 7% is the ballpark figure which we want to come up with.”
Lalit Agarwal, page 17 of the filed PDF · View the filing
ROC — 18% and then maybe 20% and above 20%
stated as an aspiration by Lalit Agarwal
p. 13
“Actually, took ROC, ultimately, we would want to over anything above 20%, 22%.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Same-store sales growth — 6% to 7%
stated conditionally by Lalit Agarwal
p. 10
“we also believe that similar things could be derived if we are able to achieve 6% to 7% of like-for-like growth”
Lalit Agarwal, page 10 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 explained the yarn cost proportion in apparel and how a 30-35% rise in crude translates to roughly 3-4% increase in garment cost for polyester-based products.
Answered by Lalit Agarwal
Asked by Sameer Gupta: How much raw material inflation is V-Mart facing and what is the sensitivity to crude price changes?
p. 8
“So that's how the matrix flows. What is the level of because if the overall crude prices that we see has grown by almost 30%, 35%, it has translated to almost cost of 10% -- 8% or 9% in yarn cost, and which has resulted into 3% to 4% of apparel or garment cost.”
Lalit Agarwal, page 8 of the filed PDF · View the filing
Management said efficiency generation and same-store sales growth of 6-7% could sustain similar improvements, though inflation and labour costs pose constraints.
Answered by Lalit Agarwal
Asked by Sameer Gupta: Given pre-IndAS EBITDA margin improvement of 120 bps ex-LimeRoad, should a similar margin expansion be expected in FY27 if LFL repeats?
p. 10
“I see there are constraints in terms of the overall inflation, overall labour cost also going up because what happened recently in Haryana, or Noida and all of this certainly has led to a little bit of -- could lead to a little bit rise in the labour cost that again could be detrimental.”
Lalit Agarwal, page 10 of the filed PDF · View the filing
Management said they do not want to pass on inflation blindly as they did in FY22-23, and will selectively absorb some margin.
Answered by Lalit Agarwal
Asked by Tejas Shah: Can V-Mart pass on inflation to customers without hurting demand momentum?
p. 11
“We do not want to pass it on blindly. We do not want to pass it on like we did it in '22, '23.”
Lalit Agarwal, page 11 of the filed PDF · View the filing
Management said V-Mart itself is also struggling to secure production and inventory, calling it a tough period for the whole supply chain.
Answered by Lalit Agarwal
Asked by Tejas Shah: Can smaller competitors struggle with raw material availability, creating a market share opportunity for V-Mart?
p. 11
“So I just don't want to raise my hopes because as of now, we are also struggling. Our team is also trying to grab on to all of these to secure the production.”
Lalit Agarwal, page 11 of the filed PDF · View the filing
Anand Agarwal said the direction is right and intentions are toward that level but declined to set a specific timeline.
Answered by Anand Agarwal
Asked by Tejas Shah: Can V-Mart reach pre-COVID PAT margin levels this year given 5-7% SSSG?
p. 12
“Now to set a timeline, whether this will happen in the next year or the year after that, I can't see that. Or I cannot predict that.”
Anand Agarwal, page 12 of the filed PDF · View the filing
Management said it is not about lower ASP preference but about efficiency and value, with some customers trading down and others trading up.
Answered by Lalit Agarwal
Asked by Rehan Syed: Is flat apparel ASP due to customers preferring lower-ticket products or a higher mix of entry-price categories?
p. 12
“Here both the things would happen. The higher consumer, which is the brand buyer, and then the consumer which buy premium products, would move down and could buy a little better product from our offerings.”
Lalit Agarwal, page 12 of the filed PDF · View the filing
Management targets moving from around 14.5% currently to 18% and eventually above 20%.
Answered by Lalit Agarwal
Asked by Rehan Syed: What is the medium-term sustainable ROC target once the expansion phase matures?
p. 13
“So right now we are around 14.5% we want to go to 18% and then maybe 20% and above 20%.”
Lalit Agarwal, page 13 of the filed PDF · View the filing
Management said market share is watched but is not a critical metric given the large size of India's still-unorganized consumption base.
Answered by Lalit Agarwal
Asked by Rahul Agarwal: Does market share matter in this industry and is it tracked internally?
p. 14
“There is so much of consumption left out, still more than 60% of the business is going to the mom-and-pop or the unorganized traditional retail store.”
Lalit Agarwal, page 14 of the filed PDF · View the filing
Lalit said they have blocked 50-60% of fabric needs through December and don't expect margin negation; Anand attributed the capex increase mainly to tech and AI investments.
Answered by Lalit Agarwal
Asked by Rahul Agarwal: Will there be a margin hiccup entering the festive/winter season given advance booking dynamics, and what explains the higher capex guidance versus expected refurbishment costs?
p. 15
“They have almost blocked 50% to 60% of our needs or our total demand till December.”
Lalit Agarwal, page 15 of the filed PDF · View the filing
Management said like-for-like price increases would be limited to about 1-1.5%, with ASP growth coming more from mix shift such as kurta sets rather than outright price hikes.
Answered by Anand Agarwal
Asked by Aliasgar Shakir: What price increase is needed to mitigate raw material inflation, and could it dent demand as seen post-COVID?
p. 15
“On an average, if you look at the similar like-for-like product line, the price increase may go up by 1%, 1.5%.”
Anand Agarwal, page 15 of the filed PDF · View the filing
Lalit said risks always exist but management remains confident in continuing the SSSG growth rate given the groundwork already done.
Answered by Lalit Agarwal
Asked by Aliasgar Shakir: Given strong SSSG for 10 quarters, is there a risk of cyclical softening, competition, or store overlap?
p. 16
“But overall, we believe -- and we are very confident that we should be able to crack and continue the SSSG growth rate which is going on.”
Lalit Agarwal, page 16 of the filed PDF · View the filing
Anand said core capex per store remains around Rs 1.3-1.4 crores, with the higher blended figure reflecting store refurbishment spend.
Answered by Anand Agarwal
Asked by Lokesh Manik: Where will capex per store settle in the medium term given the rise from pre-COVID levels?
p. 16
“So Lokesh, our capex per store still remains around INR1.3 crores, INR1.4 crores.”
Anand Agarwal, page 16 of the filed PDF · View the filing
Lalit said the company aims to keep rent around 6-7.5%, targeting roughly 7% or less for new stores.
Answered by Lalit Agarwal
Asked by Lokesh Manik: What is the medium-term target for rent as a percentage of sales?
p. 17
“So 7% is something that we are trying to chance and we will be there.”
Lalit Agarwal, page 17 of the filed PDF · View the filing
Lalit said a delta will remain due to business mix differences like V-Mart's kirana/FMCG lines, though Unlimited's like-for-like growth is expected to outpace V-Mart's.
Answered by Lalit Agarwal
Asked by Jayant: Will Unlimited's sales throughput per square foot converge toward V-Mart levels over the next few years?
p. 18
“So it is going to be, because there is a delta as of now of approximately INR140 or INR135.”
Lalit Agarwal, page 18 of the filed PDF · View the filing
Lalit said margins will be managed primarily through internal efficiency and vendor/production improvements rather than through premiumizing the customer mix.
Answered by Lalit Agarwal
Asked by Jayant: For FY27, is margin protection being managed via premiumizing loyal customers to higher-margin products?
p. 19
“We will certainly want to manage our margins largely from our internal efficiency generation through our vendors or in our innovation pieces or in our cost savings that we could do over increasing the quantum of production because our production rate is also going up.”
Lalit Agarwal, page 19 of the filed PDF · View the filing
Risks flagged
Rising crude-linked yarn and polyester prices increasing input costs
p. 4
“So definitely there is a rise of almost 10% to 15% in the yarn prices, which effectively converts to almost 5% to 7% in the apparel prices.”
Lalit Agarwal, page 4 of the filed PDF · View the filing
Perceptional fear factor from geopolitical war scenario affecting urban consumer spending
p. 3
“Perceptionally, they were into a fear factor. People wanted to hold their expenses, largely in urban India, we saw not especially in Tier 2, Tier 3 towns.”
Lalit Agarwal, page 3 of the filed PDF · View the filing
Weather disruption affecting seasonal demand
p. 3
“There was definitely a little bit of mixed weather times, because the last quarter, early part of the quarter, we saw winter being very low and then suddenly winter came up and then it sinked in very fast.”
Lalit Agarwal, page 3 of the filed PDF · View the filing
Consumer inflation across the broader basket, including food, fuel, and utility costs, that could impact spending
p. 10
“Because if I look at the entire piece, even the agriculture prices, the whole fertilizer, the whole pesticides or even the logistic cost or their day-to-day power cost or electricity cost.”
Lalit Agarwal, page 10 of the filed PDF · View the filing
Availability and cost challenges in securing raw materials and production capacity from vendors
p. 11
“So there are challenges. The whole election pieces which happened in Bengal and Tamil Nadu. There also the labour workforce has got reduced. There has been a challenge in terms of the availability of the labour.”
Lalit Agarwal, page 11 of the filed PDF · View the filing
Rising labour costs due to Labour Code implementation and regional wage pressures
p. 10
“I see there are constraints in terms of the overall inflation, overall labour cost also going up because what happened recently in Haryana, or Noida and all of this certainly has led to a little bit of -- could lead to a little bit rise in the labour cost that again could be detrimental.”
Lalit Agarwal, page 10 of the filed PDF · View the filing
Potential pressure on capex due to rising raw material and construction costs
p. 17
“There will be some pressure on the capex line as well because of the increase in the raw material prices or the group prices or the market uncertainties.”
Lalit Agarwal, page 17 of the filed PDF · View the filing
Rising real estate and construction costs affecting rent expense
p. 17
“The construction cost has gone up, land cost have significantly gone up, the real estate prices have gone up.”
Lalit Agarwal, page 17 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.