V-Mart Retail (VMART) Q2 25/26 earnings summary

Executive summary

• Achieved 22% revenue growth in Q2 FY26, with 25 new stores opened, 11% like-for-like growth, and total store count reaching 549; festive season sales and strong rural demand were key drivers.

• EBITDA margin improved to 8.9% in Q2, with EBITDA up 85% year-over-year and LimeRoad's loss reduced by 53%; H1 FY26 saw EBITDA grow 44% and PAT increase 156%.

• Net loss in Q2 FY26 narrowed to ₹913 lakhs from ₹5,849 lakhs last year, while H1 FY26 returned to a net profit of ₹2,473 lakhs.

• Inventory freshness improved, with design-to-shelf cycle reduced to 70-75 days and inventory days down to 97, supporting better sales throughput.

• Board approved unaudited Q2 and H1 FY26 results, with statutory auditors issuing a limited review report with no material misstatements.

Financial highlights

• Q2 FY26 revenue from operations was ₹80,687 lakhs, up from ₹66,097 lakhs in Q2 FY25; gross margin remained flat at 33.6%.

• Q2 FY26 EBITDA was ₹7,151 lakhs (8.9% margin), up from ₹3,862 lakhs last year; PAT was ₹144 million, up 36% year-over-year.

• Free cash flow of INR 27 crore YTD, with net cash flow from operating activities at ₹2,327 million YTD FY26.

• Capex of INR 30 crore in Q2, mainly for new store openings and refurbishments.

• Inventory increased by INR 220 crore quarter-on-quarter for festive season, but days of inventory improved by two days year-over-year.

Outlook and guidance

• Expansion guidance raised to 75 new stores for the year, with continued focus on profitable growth, inventory freshness, and operational efficiency.

• Expecting mid to high single-digit SSSG for the full year, with Q3 likely to see low to mid single-digit growth due to festive season timing.

• Lease term estimates for store leases reassessed to align with future operating strategy.