V-Mart Retail Limited has been honored with the Silver Shield in the Services Category at the prestigious ICAI Awards for Excellence in Financial Reporting 2024-25. The award ceremony took place in January 2026, recognizing the company's outstanding commitment to financial transparency and reporting excellence.

Award Recognition and Significance

The ICAI Awards for Excellence in Financial Reporting are instituted by the Institute of Chartered Accountants of India (ICAI), the apex statutory body regulating the accounting profession in India. These awards are widely regarded as among the most credible and distinguished recognitions in the field of financial reporting across corporate India.

The award celebrates excellence in transparency, disclosure standards, statutory compliance, and the overall quality of financial statements. This recognition marks a significant milestone in V-Mart's journey of building robust governance frameworks and maintaining best-in-class financial reporting practices.

Triple Crown of Governance Excellence

With this latest honor, V-Mart joins a distinguished league of organizations that have received all three premier accolades in governance and reporting excellence. The company now holds a unique position with three major awards:

This triple recognition demonstrates V-Mart's comprehensive approach to corporate governance, encompassing financial reporting excellence, governance frameworks, and overall corporate accountability.

Company Profile and Operations

Founded in 2002, V-Mart Retail Limited is India's pioneer in organized value fashion, dedicated to bringing high-quality, affordable apparel and accessories to the rapidly expanding middle class. The company operates as a leading value fashion retailer with a deep-rooted focus on Tier II and III cities.

The company maintains an extensive omni-retail store chain designed to meet the evolving aspirations of the modern Indian family. Beyond its physical footprint, V-Mart also serves customers through its digital platform and is available on other leading marketplaces.

Strategic Commitment to Excellence

This recognition reflects V-Mart's unwavering commitment to accountability, integrity, and stakeholder trust. The company continues to redefine the value fashion landscape through its "value retailing" philosophy and aggressive physical expansion strategy. As V-Mart celebrates this achievement, the company reaffirms its commitment to further elevating its financial reporting and governance benchmarks while continuing to drive sustainable growth in the organized retail sector.

Delhi-based V-Mart Retail has lowered its revenue growth outlook for fiscal year 2025-26 to 15-18% from its earlier estimate of 17-20% after festive-season sales failed to meet expectations. The small-sized hypermarket chain operator cited weaker-than-anticipated festive momentum despite seeing steady underlying demand.

Revised Growth Targets and Performance

Managing Director Anand Agarwal confirmed the company achieved 16.00% growth in the first nine months of the fiscal year. The revised full-year guidance reflects the impact of subdued festive sales, though management maintains confidence in the long-term growth trajectory.

Agarwal emphasized the company's focus on profitable growth rather than pursuing headline sales numbers, noting that margins are expected to continue improving gradually despite the seasonally soft fourth quarter.

Margin Performance and Outlook

The company reported significant margin improvements in the first nine months, with EBITDA margins reaching 14.50%, representing a nearly 200 basis points improvement. While the fourth quarter typically remains the weakest period for profitability due to January and February being slower months, management expects continued margin enhancement over the previous year.

Unlimited, the company's premium format, showed strong performance with EBITDA growth exceeding 40.00% and margins matching the V-Mart business. However, Agarwal noted that pre-Ind AS calculations still show higher rental costs impacting Unlimited's profitability compared to V-Mart stores.

Store Expansion Strategy

V-Mart Retail plans to maintain its aggressive expansion strategy with 13-15% annual store network growth. The company expects to add approximately 75 stores in FY26 and 80-85 stores in FY27, building on its base of 500-plus stores.

Market Competition and Growth Potential

Addressing concerns about increasing competition in tier-II and smaller towns, Agarwal highlighted that rising competition validates rather than threatens the business model. He noted that only 30% of India's apparel retail market is organized, leaving approximately 70% still to shift from unorganized to organized players.

The management views the entry of new players as validation of the market opportunity, with significant headroom for growth driven by both market organization and overall consumption growth. Success factors will depend on customer understanding, regional relevance, discipline, and long-term commitment to the market.

Financial Performance Context

Despite the revised guidance, V-Mart Retail maintains its position as a key player in India's organized retail sector. The company's shares have declined over 21% in the past year, reflecting broader market challenges and competitive pressures. However, the focus on profitable growth and margin improvement demonstrates management's commitment to sustainable business expansion rather than growth at any cost.