V-Mart Retail (VMART) posted a net loss of 219m (est. net loss of INR2m), primarily due to weak SSSG and losses from Limeroad losses. These factors contributed to a significant 740bp reduction in EBITDA margin. Revenue growth for V-Mart (Excl LR and Unlimited) grew 15%, mainly driven by footprint additions. We have cut FY24E EBITDA by 28%, led by INR800m EBITDA loss in LimeRoad and a prolonged recovery period. However, we maintain our FY25E EBITDA, as we anticipate a recovery in SSSG and the mitigation of losses of INR500m in LimeRoad.
OutlookWe model a revenue/EBITDA CAGR of 18%/30% over FY23-25. We reiterate our BUY rating with a TP of INR2,740 (based on 12x EV/EBITDA on Mar’25E).
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