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

Executive summary

• Q2 revenue grew 22% year-over-year, with 11% like-for-like growth and 25 new stores opened, bringing the store count to 549 as of November; H1 revenue rose 17% year-over-year.

• EBITDA margin for offline business reached 8.9% in Q2, with EBITDA up 85% year-over-year; H1 EBITDA grew 44%.

• Net profit after tax for H1 FY26 was ₹2,473 lakhs, compared to a net loss of ₹4,437 lakhs in H1 FY25.

• Unlimited brand and southern India stores showed strong growth, with further expansion planned.

• Board approved unaudited Q2 and H1 FY26 results on November 10, 2025, with no material misstatements identified by auditors.

Financial highlights

• Q2 FY26 revenue from operations was ₹8,069 million, up 22% year-over-year; gross margin remained flat at 33.6%.

• Q2 FY26 EBITDA was ₹715 million (8.9% margin), up 85% year-over-year; PAT was ₹144 million, up 36% year-over-year.

• Free cash flow of INR 27 crore generated YTD, compared to a negative INR 63 crore last year; net cash flow from operating activities was ₹2,327 million YTD FY26.

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

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

Outlook and guidance

• Full-year same-store sales growth (SSG) guidance maintained at mid to high single digits, with 5% SSG achieved in H1.

• Q3 expected to see low to mid single-digit SSG due to festive season timing shifts.

• Marginal improvement in full-year EBITDA margin expected, with upside if SSG exceeds mid-single digits.

• Management focuses on store expansion, operational efficiency, and reducing LimeRoad losses.

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