/*** blogpostTitle: V-Mart Q4 FY26: Growth accelerates as margins and cash flows improve blogpostSlug: vmart-q4fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra-realistic corporate financial scene showing a clean dashboard on a laptop with three key charts: a rising quarterly revenue bar chart from Q4 FY25 to Q4 FY26, an improving EBITDA margin line trending upward, and a store count increase gauge reaching 577. Nearby are printed spreadsheets with cash flow rows and an inventory days metric dropping from 96 to 93. The setting is a modern office desk with neutral lighting, no logos or text labels. blogpostShortTitle: V-Mart Q4 FY26 growth and margins ***/

V-Mart Q4 FY26: Growth accelerates as margins and cash flows improve

V-Mart Retail closed Q4 FY26 with a sharp step-up in growth, helped by stronger footfalls, steady same-store sales and a high pace of store additions. Revenue from operations in Q4 FY26 rose to 9,709 million rupees, up 24% year on year. EBITDA grew faster at 1,062 million rupees, up 56%, taking the EBITDA margin to 10.9% versus 8.7% in Q4 FY25. Adjusted PAT for the quarter turned positive at 105 million rupees, compared with a small loss in the prior-year quarter.

Management attributed the quarter’s performance to a better demand environment in its core markets, early readiness for the summer season, and continued improvements in merchandising and execution discipline. The company also called out that Q4 marked the 10th consecutive quarter of like-to-like growth, with same-store sales growth at 12% for the quarter.

Growth drivers: footfalls, store additions, and stable pricing

Operationally, the quarter showed clear traction. Footfalls increased from 18 million to 26 million, a 47% rise. Memos rose from 8 million to 10 million, up 21%. Same-store sales growth was 12% overall, with V-Mart at 12% and Unlimited at 9%.

Average selling price stayed broadly flat at 229 rupees overall, with apparel ASP in V-Mart up 5% for the quarter according to management commentary. The company linked the improvement to a better festive mix, lower discounting and stronger full-price sell-through. At the same time, management acknowledged that consumer sensitivity remains high and that price increases, if needed due to input cost inflation, will be controlled.

The store engine continued to expand. Total stores increased to 577 as of March 31, 2026, from 497 a year ago. The company opened 29 stores in Q4 and closed 6. For FY26, it opened 92 stores and closed 12. New stores were added largely through a cluster-based approach, with Q4 additions concentrated in Uttar Pradesh, Bihar, West Bengal, Tamil Nadu and Rajasthan.

Financial snapshot

Note: Rupee million values are converted to crore.

FY26 performance: profitability returns, inventory improves

For FY26, revenue from operations grew 16% to 37,894 million rupees. EBITDA rose 36% to 5,134 million, with EBITDA margin improving to 13.5% from 11.6% in FY25. Adjusted PAT increased to 1,250 million rupees, equivalent to 3.3% of revenue.

Inventory metrics moved in the right direction. Days of inventory improved from 96 to 93. The company also highlighted a 13% reduction in per-store inventory, from 20 million rupees to 17 million rupees. Management said better inventory health should support gross margins over time through fresher merchandise, lower discounting requirements and an improved product mix.

The operating expense base also showed divergence across verticals. While manpower costs rose at the consolidated level due to scale-up in stores, LimeRoad costs fell materially. LimeRoad manpower cost reduced from 221 million rupees in FY25 to 138 million rupees in FY26, and other expenses reduced from 252 million to 106 million.

FY26 revenue mix

V-Mart’s reported revenue mix remained stable.

LimeRoad: losses reduce faster than scale

LimeRoad remained a key discussion point. The company’s messaging in FY26 was consistent: reduce losses, strengthen omni-channel integration, and use technology-led execution to improve unit economics.

In Q4 FY26, LimeRoad EBITDA loss reduced to 30 million rupees from 68 million a year ago. For FY26, the loss reduced to 133 million rupees from 310 million in FY25. However, LimeRoad’s scale moderated. NMV declined to 819 million rupees in FY26 from 1,096 million in FY25. Management also highlighted that LimeRoad’s commission income fell year on year.

A notable metric in the presentation was V-Mart inventory contribution in LimeRoad online orders, which rose to 45% in Q4 FY26 from 40% in Q4 FY25. Management positioned this as part of an omni-channel strategy, suggesting that cross-channel customers show higher repeat rates and higher bill sizes.

Guidance and key management commentary

The company gave two clear forward-looking anchors.

First, capex. FY26 capex was 159 crore. The CFO guided FY27 capex at roughly 170 crore to 180 crore, with incremental allocations towards technology and AI-led interventions.

Second, expansion. Management reiterated guidance of 13% to 15% area addition each year, net of 1% to 2% closures due to mistakes.

The earnings call also spent meaningful time on sourcing risk. Management flagged crude-linked inflation pressure through polyester and yarn. The Managing Director cited a 10% to 15% rise in yarn prices, converting into roughly 5% to 7% inflation in apparel pricing. The company’s stated approach is to mitigate through early bookings, vendor negotiations and fabric innovation. Management said 50% to 60% of needs till December have been blocked, suggesting a more proactive sourcing plan for the upcoming seasons.

On returns, management reiterated its focus on RoCE. It stated RoCE is around 14.5% and the company wants to move toward 18%, and longer term above 20% to 22% as expansion and prior investments mature.

What to track next

V-Mart exits FY26 with improving profitability and better cash flow conversion. FY26 operating cash flow was 5,034 million rupees and the company reported positive free cash flow of 326 million rupees, versus negative free cash flow in FY25 under its presented methodology.

The near-term variables are also clear. Input cost inflation and raw material availability could influence gross margins and pricing decisions, especially as polyester mix rises during festive and winter seasons. LimeRoad is moving in the right direction on losses, but investors will likely watch whether scale stabilizes as profitability improves.

Overall, the company’s FY26 results reinforce a theme of disciplined execution. Growth is being delivered through both same-store improvements and store additions, profitability has recovered meaningfully, and management appears focused on protecting customer value while investing in systems and technology to scale.