V-Mart Retail Limited's Board of Directors, at its meeting held on May 7, 2026, approved the audited standalone financial results for the quarter and year ended March 31, 2026. The results, audited by statutory auditors S.R. Batliboi & Co. LLP, reflect a significant improvement in profitability, revenue, and operational metrics across both annual and quarterly periods. The Board also announced a final dividend and key governance appointments during the meeting. In compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited financial results were subsequently published in "Business Standard" English and Hindi newspapers on May 8, 2026. An investor presentation covering Q4FY26 and FY26 performance was also shared with analysts and investors. On May 8, 2026, the Company also issued a communication to shareholders under Regulation 30 of the SEBI Listing Regulations, sharing highlights of the audited financial results. Founded in 2002, V-Mart is a pioneer in organised value fashion and operates as an omni retail store chain for the complete family, offering fashion apparel and accessories. Primarily focusing on Tier II and III cities, V-Mart is present pan-India with an average store size of 8,000 sq. ft., and serves digital-first customers through its omni-channel platform LimeRoad apart from being available on all other leading marketplaces.

Q4FY26 Financial Performance

For the quarter ended March 31, 2026, V-Mart Retail delivered strong year-on-year growth across key financial parameters. Revenue from operations stood at ₹9,709 Mn, up 24% from ₹7,801 Mn in Q4FY25. Gross profit grew 21% YoY to ₹3,121 Mn, though gross profit margin moderated to 32.1% from 33.1% in the year-ago quarter. EBITDA expanded 56% YoY to ₹1,063 Mn, with EBITDA margin improving to 10.9% from 8.7%. Profit before exceptional items and tax turned positive at ₹116 Mn compared to a loss of ₹13 Mn in Q4FY25. Adjusted PAT for the quarter stood at INR 10 crore versus INR -1 crore in Q4FY25, a growth of 1101%. Net profit for the quarter stood at ₹1,128 lakhs versus ₹1,851 lakhs in the corresponding quarter of the previous year.

The following table presents the key quarterly financial metrics:

FY26 Annual Financial Performance

V-Mart Retail delivered robust full-year performance for FY26. Revenue from operations grew 16% YoY to ₹37,894 Mn (₹3,789 Cr) from ₹32,539 Mn in FY25. Gross profit rose 16% YoY to ₹13,031 Mn, with gross profit margin stable at 34.4% versus 34.5% in FY25. EBITDA expanded 36% YoY to ₹5,135 Mn (₹513 Cr), with EBITDA margin improving to 13.6% from 11.6%. Profit before exceptional items and tax surged 689% YoY to ₹1,560 Mn. Profit after tax (PAT) grew 171% YoY to ₹1,240 Mn (₹124 Cr), with PAT margin expanding to 3.3% from 1.4%. Adjusted PAT grew 507% YoY to ₹1,250 Mn, representing 3.3% of revenue.

Segment-Wise Performance

V-Mart Retail operates across two segments: Retail Trade and Digital Market Place (LimeRoad). For the year ended March 31, 2026, the Retail Trade segment contributed revenue of Rs 3,76,463 lakhs and segment results of Rs 18,984 lakhs, compared to Rs 3,21,310 lakhs and Rs 7,193 lakhs respectively in FY25. The Digital Market Place segment reported revenue of Rs 3,718 lakhs and a segment loss of Rs (1,436) lakhs in FY26, an improvement from a loss of Rs (3,276) lakhs on revenue of Rs 5,056 lakhs in FY25. LimeRoad's EBITDA loss reduced by 57% YoY to ₹133 Mn for FY26, while NMV declined 25% YoY to ₹819 Mn. For Q4FY26, LimeRoad's EBITDA loss reduced by 56% YoY to ₹30 Mn.

Operational Highlights

On the operational front, V-Mart Retail reported strong traction across store metrics for both Q4FY26 and FY26. In Q4FY26, revenue grew 24% YoY, footfall surged 47% YoY, and memo (number of transactions) grew 21% YoY. Same Store Sales Growth (SSSG) for Q4FY26 stood at 12% overall (V-Mart: 12%, Unlimited: 9%). For the full year FY26, footfall grew 22% YoY to 90 million, memo grew 18% YoY to 38 million, and SSSG was 5% for both V-Mart and Unlimited banners. Days of Inventory (DOI) improved from 96 to 93 days, with per-store inventory reduced by 13% from ₹20 Mn to ₹17 Mn.

As of March 31, 2026, total store count stood at 577 (V-Mart: 478, Unlimited: 99), up from 497 stores in FY25. During Q4FY26, 29 new stores were opened (V-Mart: 25, Unlimited: 4) and 6 stores were closed. For the full year FY26, 92 stores were opened and 12 were closed — marking the highest ever store additions for the company in a single year. Total retail space expanded 16% YoY to 5.0 million square feet. Sales per square feet per month improved 3% YoY to ₹728 for the total portfolio.

Balance Sheet and Cash Flow Position

As at March 31, 2026, total assets stood at Rs 2,77,990 lakhs compared to Rs 2,43,624 lakhs as at March 31, 2025. Total equity increased to Rs 95,110 lakhs from Rs 81,018 lakhs. Cash and cash equivalents at the end of the year were Rs 1,953 lakhs, compared to Rs 3,942 lakhs at the beginning of the year. Net cash generated from operating activities for FY26 was Rs 50,054 lakhs, significantly higher than Rs 34,940 lakhs in FY25. Net cash used in investing activities was Rs (17,398) lakhs and in financing activities was Rs (34,645) lakhs for the year ended March 31, 2026. Key financial ratios reflect improved efficiency: inventory turnover ratio improved to 2.52x from 2.36x, and net capital turnover ratio improved to 86.7x from 56.4x. Net profit margin expanded to 3.3% from 0.6%.

Dividend, Governance, and Other Board Decisions

The Board of Directors recommended a final dividend of Rs 1 per equity share of face value Rs 10 each (10%) for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. Mrs. Shweta Kumar (Independent Director) was appointed as Lead Independent Director with effect from May 7, 2026, aimed at strengthening corporate governance. The Board also re-appointed KPMG Assurance & Consulting Services LLP as Internal Auditors for financial years 2026-27 and 2027-28. During the year, the Company issued 3 bonus shares for every 1 fully paid-up equity share, and earnings per share for prior periods have been restated accordingly in line with Ind AS 33. The statutory auditors S.R. Batliboi & Co. LLP issued an unmodified audit report on the standalone financial statements for the year ended March 31, 2026.

On the ESG front, V-Mart Retail holds a Morningstar Sustainalytics score of 25.9 (Low Risk, as of March 2026), an MSCI score of 62 (Strong, as of March 2026), and a CRISIL ESG score of 65.7 (Strong, as of December 2024). The company also received recognition including a Silver Award for Excellence in Financial Reporting (2025), an ICSI Award (2024), and a Golden Peacock Award (2022).

V-Mart Retail has shared a multi-pronged strategic outlook during its recent concall, covering return on capital employed (ROCE) targets, regional expansion plans, and cost management measures to shield consumers from rising input costs in the garment supply chain. The conference call, held on May 8, 2026, has been made available on the company's website.

Return on Capital Targets

Management has outlined an ambitious capital efficiency roadmap, aiming for a medium-term ROCE of 18-20%, with aspirations to eventually surpass 20-22% as recent investments begin to yield better returns. This trajectory reflects the company's confidence in its operational model and the improving productivity of capital deployed across its retail network.

North India Expansion Strategy

V-Mart Retail anticipates 50-70% store growth in North India over the next 5 years, citing high population density in the region as a key demand driver. This expansion focus underscores the company's intent to deepen its presence in its core geographies and leverage the structural consumption opportunity in value retail markets.

Managing Input Cost Pressures

Despite a 3-4% increase in overall garment costs, V-Mart Retail intends to restrict consumer price increases to just 1-2%. The company is navigating a challenging environment marked by yarn inflation of 10-15%, driven by elevated crude oil prices — a key feedstock for synthetic fibres widely used in value apparel. The key strategies being deployed include:

• Early orders: Locking in procurement ahead of anticipated price escalations to secure more favourable input costs
• Alternate sourcing: Diversifying supplier and raw material bases to reduce dependence on higher-cost inputs
• Better fabric utilisation: Optimising fabric consumption and minimising waste across product lines to improve cost efficiency

Key Strategic Metrics at a Glance

The following table summarises the strategic and cost dynamics highlighted during the concall:

Preserving Market Share Through Pricing Discipline

The decision to absorb a substantial portion of the cost increase rather than passing it on to consumers underscores V-Mart Retail's strategic priority of maintaining market share. By keeping consumer price hikes well below the actual rise in input and garment costs, the company aims to sustain affordability for its core customer base in the value retail segment. This disciplined approach to pricing reflects a deliberate trade-off between near-term margin management and longer-term volume and market share objectives.