Neutral V-Mart Retail Ltd for the Target Rs. 900 by Motilal Oswal Financial Services Ltd
V-Mart 1QFY26 pre-quarter
Revenue grew 13% YoY; blended SSSG moderated to 1%
* V-Mart’s 1QFY26 revenue grew 13% YoY to INR8.9b (in line with our prequarter estimate), driven primarily by 14% YoY store additions.
* Blended SSSG moderated to 1% (vs. 15%/10%/8% YoY in 2Q/3Q/4QFY25).
* SSSG for V-Mart (core) stood at 1% (vs. 10%/7% in 3Q/4QFY25), while SSSG for Unlimited also came in at 1% (vs. 11%/10% in 3Q/4QFY25).
* The company indicated that, after adjusting for the impact of Eid preponement (to 4QFY25), SSSG would have been 5% (for overall business as well as V-Mart and Unlimited formats).
* Calculated revenue per sq. ft. increased by a modest ~1% YoY to INR2,032/sq. ft. in 1QFY26.
* The company opened 15 new stores (we estimate 12 V-Mart store openings and three Unlimited stores) and closed two stores during the quarter, bringing the total store count to 510 (13 net store additions in 1QFY26).
* Breakup of stores: V-Mart likely closed the quarter with 423 stores and Unlimited with 87 stores.
* The company has not disclosed the revenue contribution from LimeRoad.
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