V-Mart Retail Limited stands as one of India's largest value retail chains in terms of store count and retail area. Operating as an omni-channel value retailer, V-Mart delivers experiential offerings to India's aspirational middle class, serving fashion and value-conscious consumers across the country. The company was originally incorporated as 'Varin Commercial Private Limited' on July 24, 2002, in West Bengal. Its name was changed to V-Mart Retail Private Limited on July 11, 2006, and later to V-Mart Retail Limited upon conversion into a public limited company on July 11, 2008. Since 2003, V-Mart has emerged as a retail powerhouse with a presence in over 300 cities.
The company operates as a complete family fashion store, offering value retailing of apparel with a minor presence in non-apparel categories (footwear, accessories, toys/games, home textile, furnishing, décor, and appliances, etc.) and Kirana bazaar. Led by the concept of 'value retailing', V-Mart caters to the needs of value and fashion-conscious consumers residing in tier II, III, and IV cities across India.
V-Mart Retail has demonstrated robust financial growth, with revenues reaching Rs 32,660 million in FY25, a 16.4% increase compared to Rs 28,066 million reported in FY24. The company's operating profit saw a significant surge of 84.8% year-on-year during FY25. As of recent data, the market capitalization stands at approximately ₹7,055.34 crore. Promoter holding is at 44.28%, with no pledged shares.
The latest quarterly results for the quarter ended December 2024 show a net profit increase of 153.74% to Rs 71.63 crore, up from Rs 28.23 crore in the same period the previous year. Sales also rose by 15.49% to Rs 1026.73 crore in the December 2024 quarter.
- FY25 Performance: Revenue of Rs 32,660 million, significant profit surge.
- Q4 FY25 Performance: 17% revenue growth.
- December 2024 Quarter Results: Net profit of Rs 71.63 crore (up 153.74% YoY), Sales of Rs 1026.73 crore (up 15.49% YoY).
- Market Capitalization: ₹7,055.34 Crore (Current)
- Promoter Holding: 44.28%
- Key Financial Ratios (FY25):
- P/E Ratio: 153.82
- P/B Ratio: 8.69
- ROE: 5.8% (Improved from -13.1% in FY24)
- ROCE: 23.8% (Improved from 2.7% in FY24)
- ROA: 8.0% (Improved from 1.9% in FY24)
As of December 2024, V-Mart operates 488 stores spread across approximately 42 lakh sq. ft. of retail space, with the majority of stores located in tier-II, III, and IV cities across India. The company recently celebrated a significant milestone by inaugurating its 500th store, underscoring its rapid and consistent growth. The brand has served over 100 million customers and opened 62 new stores in FY25.
V-Mart operates under the banners of V-Mart, Unlimited, and LimeRoad.com, positioning itself to continue redefining value retailing in India by making fashion more inclusive, accessible, and democratic.
V-Mart Retail has ambitious plans for expansion, aiming to open 60-65 new stores in FY26. This follows successful acquisitions and improved EBITDA margins for its brand 'Unlimited'. The company is focusing on debt management and has reduced its working capital requirements from 50.7 days to 40.4 days.
Commitment to sustainability and employee engagement through an Employee Stock Ownership Plan (ESOP) highlights V-Mart's long-term vision. While the outlook is optimistic with expectations of continued consumption growth in the value retail sector, challenges remain. LimeRoad, a subsidiary, continues to struggle financially with no immediate expectation of reaching EBITDA breakeven. The Board of V-Mart Retail has not recommended any dividend for the financial year 2024-25, opting to retain profits for future growth, in line with its Dividend Distribution Policy.
Brokerage firms project a target price of ₹3,500 per share, indicating a potential 12% upside.
V-Mart Retail continues to strengthen its position as a leading value retailer in India, focusing on tier-II, III, and IV cities while maintaining its commitment to providing affordable fashion and lifestyle products to the aspirational middle class across the country.
