V-Mart Retail (VMART) Q2 24/25 earnings summary

Executive summary

• Revenue grew 20% year-over-year in Q2FY25, with same store sales growth of 15% and 21 new stores opened, bringing the total to 467.

• EBITDA increased 57x year-over-year in Q2FY25, reaching 5.8% of revenue, while LimeRoad's EBITDA loss reduced by 63% YoY.

• Unaudited financial results for Q2 and H1 FY2024-25 were approved on October 29, 2024, covering performance up to September 30, 2024.

• Value retail segment continues to outperform, with rural and mass-market demand showing resilience.

• Focused on enhancing customer experience, digital transformation, and operational efficiency.

Financial highlights

• Q2FY25 revenue was ₹6,610 million, up 20% YoY; YTD FY25 revenue was ₹14,471 million, up 18% YoY.

• Q2FY25 EBITDA was ₹386 million (5.8% margin), up from ₹6 million (0.1%) in Q2FY24; YTD FY25 EBITDA was ₹1,376 million (9.5% margin).

• Q2FY25 PAT loss was ₹-565 million (-8.5% margin), improved from ₹-641 million (-11.7%) YoY; YTD FY25 PAT loss was ₹-444 million (-3.1%).

• Like-to-like sales growth (LTL) of 15% overall: V-Mart at 16%, Unlimited at 11%.

• Footfalls increased by 47%-50% year-over-year; bill value up 20%; ASP for apparel up 6–9%.

Outlook and guidance

• Store expansion guidance maintained at 55-60 new stores for FY25.

• Expect gross margins for offline business to remain similar to last year.

• LimeRoad losses expected to continue declining, aiming for minimal loss funding or marginal profitability.

• Inventory days improved by 16% YoY to 111 days, indicating better inventory management.

• Long-term goal to grow 2.5x in five years, focusing on sustainable, scalable growth.