Value retailer V-Mart's business update sparked a massive 15 percent rally in the share prices on October 3 after the company posted a 22 percent on year growth in provisional revenue from operations at Rs 807 crore, with a Same Store Sales Growth (SSSG) of over 11 percent for the quarter, a company filing showed.
Strong Store Additions
The retailing company opened 25 new stores and closed two during the quarter, bringing the total store count to 533 as of September 30, 2025. The 25 new stores include Five in Karnataka, Four stores each in Uttar Pradesh and Bihar, Two each in West Bengal & Jharkhand, and one store each in Jammu & Kashmir, Odisha, Rajasthan, Telangana, Uttarakhand, Chhattisgarh, Andhra Pradesh and Meghalaya.
The retailer had said in July that this year, it the company expects a net addition of around at least 65 new stores. "All the major store corrections have already been done in the last 2 years. So going forward, we expect only small need-based exits," according to Anand Agarwal, the CFO of the value retailer, V-Mart.
Strong SSSG Forecast
Motilal Oswal has called the 11% SSSG during Q2FY26 as 'strong', adding that it should lead to further margin expansion, reiterating its Buy recommendation. The management had projected a strong outlook for the Same Store Sales Growth for the retailer, even though the June quarter did not start very well.
"...Q1 has not really been a very good start in terms of the SSG. While we are hoping that Q2, Q3, we should get better results. But at the same time, we are also trying to rework our product strategy and our margin strategy, and we are looking at higher rupee margins rather than percentage margins," CFO Anand Agarwal had said in July.
In a recent note, Axis Securities had said that it expects 'mid-single digit SSSG' for FY26, benefiting from rural recovery and steady momentum in footfalls.
Riding on Rural Recovery
V-Mart had recently revamped its design team and strategy, shifting to trendy and affordable styles.
Axis Securities had recently said in a note that the retailer is well-placed to benefit from a rural recovery and market share gains from unorganised players. "Strong footfalls, disciplined cost control, and steady store expansion should aid performance, while the recent announcement on GST rate cut is likely to spur consumption and boost discretionary spending," the August note said.
V-Mart's presence is concentrated in Uttar Pradesh, Bihar and Jharkhand, with nearly 50% of total store base, catering to a large value-conscious consumer region.
Ramping Up Value Play
The value retailer is also looking to increase the Rs 1,000 apparel range on strong demand after the cut in the goods and services tax (GST), CFO Anand Agarwal has told Moneycontrol.
V-Mart’s recently acquired platform - LimeRoad - has continued to narrow its losses, with Q1FY26 loss down 56% on year. The management said it sees further moderation in coming quarters which could reduce the drag on profitability.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
