V-Mart holds FY27 growth outlook as Q1 demand and footfall stay strong

V-Mart Retail retained its FY27 revenue-growth guidance of 15%–20% and mid-to-high single-digit same-store sales growth after Q1 revenue rose about 23% year on year. The value retailer reported 40% footfall growth and is targeting lower inventory days despite uneven-monsoon risk.

— Source publishedWed, 29 Jul, 2026, 09:58 IST·First seen Wed, 29 Jul, 2026, 10:05 IST·Source CNBC-TV18 · Companies

What happened

V-Mart Retail retained FY27 revenue-growth guidance of 15%-20% and mid-to-high single-digit same-store sales growth after a strong June quarter. It reported

Key facts

  • FY27 revenue growth guidance: 15%-20%
  • FY27 same-store sales growth guidance: mid-to-high single digits
  • Q1 FY27 same-store sales growth: 9%
  • April-June 2026 revenue growth: about 23% YoY
  • April-June 2026 EBITDA growth: around 27%
  • Quarterly footfall growth: 40%
  • Inventory days target: around 75
  • Current inventory days: 84-85
  • Store supply turnaround improvement: 2-3 days
  • Per-store inventory reduction: 5%-6%
  • Market capitalisation: ₹5,689.67 crore
  • Shares declined: more than 10% over the past year

Why this matters

V-Mart’s sustained growth outlook and strong value-format traffic underscore the strategic appeal of scaled regional retail platforms, particularly those with efficient store expansion and supply-chain capabilities.

What to watch

  • Monthly or quarterly same-store sales growth versus the mid-to-high single-digit target.
  • Whether 40% footfall growth converts into stable average transaction value and units per basket.
  • Inventory days, aged-stock provisions and markdown intensity after the monsoon and festive season.
  • Gross-margin and EBITDA-margin movement as promotional activity and freight costs evolve.
  • Store-opening pace, new-store productivity and any increase in pre-opening losses.
  • Monsoon distribution across North and East India, where weather disruption can affect store traffic and apparel demand.
  • Competitive discounting by value-fashion peers, regional retailers and large organized retail chains.
  • Accelerate selective store additions in underpenetrated tier-2 and tier-3 catchments while prioritizing locations with fast payback.
  • Use stronger footfall data to tighten localized assortment, replenishment and size curves rather than broad-based inventory builds.
  • Reduce inventory days through earlier markdown decisions, improved seasonal planning and greater vendor-led replenishment.
  • Defend value positioning against regional chains and Reliance Retail-led competition, while using private labels to protect gross margin.
  • Maintain FY27 guidance unless post-monsoon same-store sales and inventory indicators materially weaken.

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