V Mart Retail , a prominent retail chain operating in tier 2 and tier 3 cities, has set its sights on achieving mid to high single-digit same-store sales growth in the fiscal year 2026. This ambitious target is underpinned by anticipated festive demand and recent GST benefits, according to company officials.

Festive Demand Boost

CFO Anand Agarwal reported an uptick in footfall during the Navratri festival, signaling strong consumer sentiment. This increase in store traffic bodes well for the company's sales projections and overall performance.

GST Rate Cut Advantage

V-Mart stands to benefit significantly from the recent GST rate reduction implemented on September 22. The new tax structure applies a 5% rate on apparels priced under Rs 2,500, down from the previous 12% for items under Rs 1,000. Given that most of V-Mart's apparel is priced below Rs 1,000, with an average price point of Rs 350.00, the company is well-positioned to capitalize on this tax adjustment.

Expansion Plans and Market Share

Despite rising competition from domestic players, V-Mart has managed to gain market share. The company has ambitious expansion plans, aiming to open 65 new stores this year. This aggressive growth strategy underscores V-Mart's confidence in its business model and target market.

Digital Business Progress

V-Mart's digital business, while currently contributing less than 5% of total revenue, is showing promising signs of improvement. The company has successfully reduced losses in this segment by 50% year-on-year. Management expressed optimism about the digital arm's future, expecting its contribution margins to turn positive in the near term.

Business Model and Target Market

V-Mart's business model focuses on serving customers in tier 2 and tier 3 cities, offering affordable apparel with an average price of Rs 350.00. This strategy aligns well with the company's target demographic and positions it favorably in the value retail segment.

The company's focus on value-conscious consumers, coupled with its expansion plans and the favorable GST rate change, presents a positive outlook for V-Mart's growth trajectory in the coming years.

V Mart Retail Limited, a prominent retail chain in India, has been directed to pay a penalty of ₹29.93 lakh by the Assistant Labour Commissioner in Kasganj, Uttar Pradesh. The order comes in response to allegations of non-compliance with the Minimum Wages Act, 1948.

Details of the Order

The order, received by V-Mart on September 5, stems from a complaint filed by the Labour Enforcement Officer in Kasganj. The complaint alleged that the company was paying its employees less than the prescribed minimum wage. Specifically, the allegations include:

• Non-payment of wages as per the Minimum Wages Act, 1948
• Non-payment of overtime wages to workers

Financial Implications

The penalty order directs V-Mart Retail to pay ₹29.93 lakh as a result of these alleged violations. The company has classified this amount as a contingent liability in its financial records.

V-Mart's Response

V-Mart Retail has announced its intention to challenge the order at the appropriate appellate forum. The company cites two main grounds for its appeal:

1. Merit of the case
2. Procedural lapses in the proceedings

In an official communication to the National Stock Exchange of India and the BSE Ltd, V-Mart stated that it would be "challenging the adverse order on merit and procedural lapses of the proceedings."

Regulatory Compliance

This disclosure was made by V-Mart Retail in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on Operations

While the immediate financial impact is limited to the contingent liability of ₹29.93 lakh, the case raises questions about V-Mart's labor practices and compliance with wage regulations. The outcome of the company's appeal could have implications for its reputation and future operations in Uttar Pradesh and potentially other states.

As the case unfolds, stakeholders will be watching closely to see how V-Mart addresses these allegations and what steps it takes to ensure compliance with labor laws across its retail network.