V-Mart Retail (VMART) Q4 24/25 earnings summary

Executive summary

• Achieved sixth consecutive quarter of growth, with strong profitability and improved consumer traction in core markets, especially tier 2/3 cities and among Gen Z consumers.

• Revenue grew 17% year-over-year in Q4 FY25 and FY25, with EBITDA up 77% YoY for the year, and PAT up 147% YoY for the year.

• Audited financial results for Q4 and year ended March 31, 2025, were approved, showing a return to profitability after a prior year loss.

• Youth segment (under 25) now accounts for 30%-33% of customers, up from 20%-23%, reflecting successful targeting of younger demographics.

• No dividend recommended for FY 2024-25 to retain profits and support future growth.

Financial highlights

• Q4 revenues grew 17% year-over-year, with FY25 revenue at ₹32,539 million, and Q4 EBITDA margin at 8.7%.

• Net profit for FY25 was Rs. 4,577 lakhs, compared to a net loss of Rs. 9,676 lakhs in FY24.

• Gross margin improved by 140 bps to 33.1% and remained stable at 34.5% for FY25.

• Free cash flow for FY25 was negative at ₹-310 million, down from ₹435 million in FY24.

• CapEx for the year was ₹122 crore, including 62 new stores and upgrades.

Outlook and guidance

• Store expansion guidance remains at 12% net area addition annually, with 65 new stores targeted for FY25.

• Board aims to retain profits to support future growth, as reflected in the decision not to recommend a dividend.

• Margins expected to remain range-bound; no further ASP corrections planned except for seasonal mix.

• LimeRoad business losses to continue declining, but not expected to break even in FY26.

• Bonus share issue and increase in authorized share capital are intended to enhance shareholder value and support expansion.