Axis Securities retains 'Buy' rating on V-Mart shares, cites strong growth outlook
V-Mart reported around 13 per cent year-on-year (YoY) revenue growth in Q1 FY26, led by a 14 per cent rise in its core business and a 12 per cent uptick in the Unlimited brand.
- Aug 19, 2025,
- Updated Aug 19, 2025 5:04 PM IST
Axis Securities has reiterated its 'Buy' rating on V-Mart Retail Ltd, assigning a target price of Rs 845 per share, implying a 9.31 per cent upside from Tuesday's closing price of Rs 773. The brokerage highlighted the company's resilient performance in the June 2025 quarter (Q1 FY26), steady store expansion, and improving profitability outlook.
V-Mart reported around 13 per cent year-on-year (YoY) revenue growth in Q1 FY26, led by a 14 per cent rise in its core business and a 12 per cent uptick in the Unlimited brand. Growth was supported by strong wedding season demand, an 11 per cent YoY increase in footfalls -- the second highest ever -- and improved conversions, which rose 100 basis points (bps) YoY to 48 per cent, the best performance in six quarters.
Despite regional disruptions, the management has guided for high single-digit same-store sales growth over the next three quarters, aided by sharper pricing, youth-centric assortments and festive demand.
Axis Securities noted that LimeRoad, V-Mart's acquired online platform, continues to narrow losses, which fell 56 per cent YoY in Q1. Management expects further moderation ahead, easing earlier profitability pressures.
On the retail front, V-Mart added 13 stores in the quarter, taking its total store count to 510. For FY26, the company expects to add 65 stores (net), implying 12–15 per cent growth in retail area. Store churn has largely normalised after the major rationalisation over the last two years.
With a revamped design team and increased focus on trendy yet affordable fashion for Gen-Z, V-Mart is redefining its value fashion proposition. Axis Securities expects revenue and EBITDA to grow at a CAGR of 18 per cent and 37 per cent, respectively, over FY24–27. "Strong footfalls, disciplined cost control, steady store expansion, and the recent GST rate cut are likely to boost discretionary spending and benefit value retailers like V-Mart," the brokerage said.
Axis, however, cautioned that competitive intensity from peers such as Zudio and V2 Retail, lower disposable incomes and the growing threat from online players could weigh on growth.
As of June 2025, V-Mart operated 510 outlets, comprising 421 under the V-Mart brand and 89 under Unlimited.
Axis Securities has reiterated its 'Buy' rating on V-Mart Retail Ltd, assigning a target price of Rs 845 per share, implying a 9.31 per cent upside from Tuesday's closing price of Rs 773. The brokerage highlighted the company's resilient performance in the June 2025 quarter (Q1 FY26), steady store expansion, and improving profitability outlook.
V-Mart reported around 13 per cent year-on-year (YoY) revenue growth in Q1 FY26, led by a 14 per cent rise in its core business and a 12 per cent uptick in the Unlimited brand. Growth was supported by strong wedding season demand, an 11 per cent YoY increase in footfalls -- the second highest ever -- and improved conversions, which rose 100 basis points (bps) YoY to 48 per cent, the best performance in six quarters.
Despite regional disruptions, the management has guided for high single-digit same-store sales growth over the next three quarters, aided by sharper pricing, youth-centric assortments and festive demand.
Axis Securities noted that LimeRoad, V-Mart's acquired online platform, continues to narrow losses, which fell 56 per cent YoY in Q1. Management expects further moderation ahead, easing earlier profitability pressures.
On the retail front, V-Mart added 13 stores in the quarter, taking its total store count to 510. For FY26, the company expects to add 65 stores (net), implying 12–15 per cent growth in retail area. Store churn has largely normalised after the major rationalisation over the last two years.
With a revamped design team and increased focus on trendy yet affordable fashion for Gen-Z, V-Mart is redefining its value fashion proposition. Axis Securities expects revenue and EBITDA to grow at a CAGR of 18 per cent and 37 per cent, respectively, over FY24–27. "Strong footfalls, disciplined cost control, steady store expansion, and the recent GST rate cut are likely to boost discretionary spending and benefit value retailers like V-Mart," the brokerage said.
Axis, however, cautioned that competitive intensity from peers such as Zudio and V2 Retail, lower disposable incomes and the growing threat from online players could weigh on growth.
As of June 2025, V-Mart operated 510 outlets, comprising 421 under the V-Mart brand and 89 under Unlimited.