V-Mart Q1 profit up 38 percent as value retail holds firm
V-Mart's Q1 FY27 shows value retail is not being hollowed out by quick commerce, with double-digit same-store sales and expanding margins.
- Revenue rose 23 percent to Rs 1,089 crore and net profit climbed 38 percent to Rs 47 crore.
- EBITDA grew 28 percent to Rs 161 crore with margin expanding to 14.78 percent.
- Same-store sales grew over 9 percent, led by the Unlimited banner at above 13 percent.
- V-Mart opened 15 stores to reach 591 outlets, showing value retail's Tier 2 and 3 floor stays strong.
Value retailer V-Mart Retail reported a strong first quarter on 24 July, a useful counterpoint to the idea that organised offline value retail is being hollowed out by quick commerce. Revenue from operations rose 23 percent year on year to Rs 1,089 crore, up from Rs 885 crore, while consolidated net profit climbed 38 percent to Rs 47 crore.
Profitability improved on the operating line too. EBITDA rose 28 percent to Rs 161 crore and margin expanded to 14.78 percent. Crucially, the growth was not just new stores. Same-store sales growth came in above 9 percent, with the core V-Mart banner at about 8 percent and the Unlimited banner above 13 percent.
Expansion stayed disciplined. V-Mart opened 15 stores and shut one during the quarter, taking the estate to 591 outlets, with new locations across seven states including Uttar Pradesh and Uttarakhand. On the leadership front, COO Vineet Jain is departing and Suraj Rathor was named Head of Finance.
The read for operators is direct. In Tier 2 and Tier 3 India, where quick commerce coverage thins out fast, low-price apparel and general merchandise still pull footfall and repeat visits. Brands chasing value shoppers should not treat quick commerce as the only route. The value-retail floor remains a large, growing and increasingly profitable channel that rewards the right pack sizes and price points.
Zane’s analysis draws on original reporting by Upstox. Read the original report.