V-Mart Retail shares rally 13% after Q2 biz updates; brokerages see up to 48% upside

Shares of V-Mart Retail jumped nearly 13 per cent during the trading session on Friday after the retail supermarket chain shared its business updates for the September 2025 quarter (Q2FY26). Shares of the smallcap counter soared 12.59 per cent to Rs 816.40 on Friday over its previous close at Rs 725.10 on Wednesday. The total market capitalization hit Rs 6,300 crore mark.

"V-Mart Retail reported a 22 per cent growth in revenue to Rs 807 crore in the September 2025 quarter. The retail chain also reported same-store-sales-growth (SSSG) at over 11 per cent and opened 25 new stores & closed two stores during the quarter," said the company in an exchange filing.

The 25 new stores include five stores in Karnataka, four stores each in Uttar Pradesh and Bihar, two stores each in West Bengal and Jharkhand, and one store each in Jammu & Kashmir, Odisha, Rajasthan, Telangana, Uttarakhand, Chhattisgarh, Andhra Pradesh and Meghalaya, it added.

Shares of V-Mart Retail have jumped about 21 per cent from its 52-week low at Rs 675 hit in March 12, 2025. The stock has tumbled more than 35 per cent from its 52-week high at Rs 1,129.33 hit in October 2024. The stock traded ex-bonus in 3:1 ratio in June 2025. Brokerage firms continue to remain positive on the stock as they see up to 48 per cent upside in the stock.

V-Mart Retail operates as a one -stop value fashion retailer. It obtains 79 per cent of its core revenue from its retail apparel segment, 10 per cent from non-apparel and the remaining 11 per cent from general merchandise. V-Mart is focusing on increasing sales volumes while maintaining competitive pricing to capture a larger share of the growing apparel market, said Ventura Securities.

"We initiate coverage with a 'buy' on V-Mart Retail for a price target of Rs 1,069. "With V-Mart trading at historical lows, we consider this a low-risk buy, positioning it well for significant upside potential as it capitalizes on the growing apparel market and macroeconomic tailwinds," it added citing intensifying competition, supply chain disruptions and domestic slowdown as key risks.

Mutual funds on around 30.83 per cent stake in the company, while FPIs owned 18.3 per cent stake in V-Mart Retail as of June 30, 2025. Retail investors owned more than 41.70 lakh equity shares or nearly 5.45 per cent stake in the company as of given date.

As per V-Mart's 2QFY26 pre-quarter update, revenue grew 22 per cent YoY, led by healthy 11 per cent SSSG across both V-Mart and unlimited. The performance was led by preponement of the Pujo festive season by 8-10 days versus last year. However, monsoon in parts of North and East India affected performance partially, said Antique Stock Broking.

"V-Mart took its footprint to 533 stores. On profitability, we expect operating leverage from healthy topline growth and ongoing cost rationalization to aid margins. We estimate the Ebitda margin at 7.1 per cent in 2QFY26. We maintain our FY26-28 estimates. The demand conditions are not improving on expected lines and could lead to sustained competition," it said with a 'buy' rating and a revised target price of Rs 1,071.