V-Mart Retail (VMART) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong demand from festival and marriage seasons, with post-festival and winter sales performing well despite a delayed winter and some government spending concerns.

• Achieved 15% YoY revenue growth in Q3FY25 (17% excluding LimeRoad), 10% same store sales growth, and 43% YoY EBITDA growth; opened 21 new stores, reaching 488 total locations.

• Youth and Gen Z share of business increased from 22% to 27%, reflecting successful targeting and empowerment of younger consumers.

• Board approved unaudited financial results for Q3 and nine months ended December 31, 2024, and amended the Code of Conduct for insider trading.

• Store experience, product quality, and technology integration have been key focus areas, with over 3 million app downloads and improved inventory freshness.

Financial highlights

• Q3FY25 revenue: ₹10,267 million (+15% YoY); EBITDA: ₹1,714 million (+43% YoY, 17% margin); PAT: ₹716 million (7% margin, up from ₹282 million).

• Like-to-like (LTL) sales grew 10% overall, with Unlimited LTL up 11%.

• Sales per square foot (SPSF) rose 10% to 927 for V-Mart and 676 for Unlimited.

• Gross margin at 35.8%, up 30 bps YoY, despite a 38% lower revenue from LimeRoad.

• Nine months FY25 revenue: ₹24,738 million (+17% YoY); EBITDA: ₹3,090 million (+79% YoY, 12.5% margin); PAT: ₹273 million (vs. loss of ₹578 million).

Outlook and guidance

• Targeting mid to high single-digit growth, with continued focus on profitable store expansion and maintaining rental discipline.

• Inventory days targeted to reduce by another 5% to 87-88 days, with margin focus shifting to value for customers.

• Store addition guidance remains at 50+ net new stores for the year, with similar targets for FY26, prioritizing profitability.

• Management highlights continued focus on operational efficiency and inventory management.

• LimeRoad's loss reduction and improved inventory days signal ongoing turnaround efforts.