V-Mart FY25 results: 17% revenue growth and 3:1 bonus issue signal strong retail comeback

What Drove V-Mart Retail’s 17% Revenue Growth and 77% EBITDA Jump in FY25?

V-Mart Retail Limited reported a strong financial performance for FY25, registering a 17 percent year-on-year increase in revenue and a substantial 77 percent surge in EBITDA. This marks a major turnaround for the company, which had faced pandemic-related disruptions and a difficult retail environment in previous fiscal years. The board’s decision to announce a 3:1 bonus share issue underscores its renewed confidence in the company’s financial stability and long-term growth trajectory. With a footprint spanning 503 stores across 311 cities in 27 states and union territories, V-Mart has positioned itself at the forefront of India‘s value retail segment. Its focus on Tier II and Tier III cities has proven effective in capturing rising aspirational demand among India’s burgeoning middle-income population.

Why Did V-Mart Issue a 3:1 Bonus Share and What Does It Mean?

The 3:1 bonus share announcement, approved by the board on May 2, 2025, reflects a shareholder-friendly capital structure strategy. Eligible shareholders will receive three fully paid equity shares for every one share held, subject to approval and a record date to be declared. A bonus issue of this scale typically indicates strong cash reserves and a healthy balance sheet, and is often used to enhance stock liquidity, attract retail investors, and reward existing shareholders. In V-Mart’s case, it reinforces the management’s belief in the company’s ability to sustain growth and profitability. It also aligns with a broader pattern among Indian mid-cap firms leveraging strong earnings cycles to issue bonuses and deepen equity market participation.

How Did V-Mart’s Financials Perform in FY25?

V-Mart posted consolidated revenue of ₹3,254 crore in FY25, up from ₹2,786 crore in FY24, translating to a 17 percent increase. Operating performance was significantly improved, with EBITDA rising to ₹377 crore from ₹213 crore in the previous fiscal year. This substantial 77 percent growth in EBITDA demonstrates improved operational efficiency and better inventory management. The company reported a net profit of ₹46 crore for FY25, compared to a net loss of ₹97 crore in FY24. Notably, the FY25 figure includes an exceptional gain of ₹24 crore. For the quarter ended March 31, 2025, V-Mart registered revenue of ₹780 crore, a 17 percent year-on-year increase, while EBITDA came in at ₹68 crore, reflecting a 70 percent improvement from Q4 FY24. Net profit for the quarter stood at ₹19 crore, recovering from a ₹39 crore loss in the corresponding period last year. This turnaround in profitability was also supported by better cost controls and improved per-store economics.

What Does Same Store Sales Growth Reveal About V-Mart’s Recovery?

The company’s same store sales growth stood at 11 percent for the full fiscal year and 8 percent for the final quarter. These metrics are a critical indicator of organic revenue growth and demonstrate the strength of the company’s existing retail network. SSSG improvements suggest that not only are more consumers returning to stores, but that average ticket sizes and conversion rates are also improving. Given that V-Mart operates in price-sensitive markets, such growth is particularly noteworthy as it reflects rising consumer confidence in non-metro areas. This organic traction, alongside the impact of new store additions, has provided a dual engine for revenue expansion throughout FY25.

How Has V-Mart Expanded Its Retail Network?

The company continued its aggressive but disciplined expansion strategy throughout the year. During FY25, V-Mart opened 62 new stores while closing 9, resulting in a net increase of 53 stores. In the March 2025 quarter alone, the company opened 13 stores and closed 4. This brought the total number of stores to 503 by year-end. Each store averages 8,000 square feet in size, and the company’s presence now covers 311 cities across India. This scale-up is a direct response to the growing demand for affordable fashion and household goods in semi-urban markets. By targeting underserved regions with limited exposure to organized retail, V-Mart continues to gain market share in the value fashion segment, especially among first-time brand adopters.

What Role Does LimeRoad and Omnichannel Play in V-Mart’s Strategy?

In a digitally evolving retail landscape, V-Mart’s omnichannel capabilities have played a crucial role in its transformation. The company operates the fashion ecommerce platform LimeRoad.com, which complements its physical presence and allows for wider reach. V-Mart’s products are also available on various leading online marketplaces, allowing it to tap into a larger consumer base beyond its immediate geographic footprint. This strategy reflects the broader shift toward digital-first retail among Indian consumers, particularly in Tier II and III locations where smartphone penetration and digital payment adoption are rising. Omnichannel retail enables V-Mart to collect granular customer data, improve inventory accuracy, and build targeted marketing programs, thus improving overall customer engagement and loyalty.

How Is the Market Reacting to V-Mart’s FY25 Results and Bonus Issue?

Following the announcement of FY25 results and the 3:1 bonus issue, V-Mart’s stock closed at ₹3,396.60 on May 2, reflecting a 2.92 percent gain on the day. Over the past twelve months, the stock has gained approximately 55.6 percent, significantly outperforming benchmark indices and most peers in the retail sector. However, it has experienced a 18.96 percent decline over the past six months, reflecting volatility in broader market conditions and sector-specific headwinds. The stock has traded within a 52-week range of ₹2,054.40 to ₹4,520.00. Its market capitalization stands at ₹6,673 crore, and the current price-to-earnings (P/E) ratio is 145.80. These metrics suggest that investors are pricing in strong forward earnings and expect V-Mart to sustain its performance momentum.

What Are Institutions Doing—FIIs, DIIs and Buy/Sell Trends?

Institutional investors have responded positively to V-Mart’s turnaround. As of the March 2025 quarter, Foreign Institutional Investors increased their holdings slightly from 17.32 percent to 17.48 percent, while Domestic Institutional Investors raised their stake from 31.72 percent to 32.22 percent. Combined institutional holding now stands at 50.41 percent, up from 49.77 percent. This increased participation from institutional investors, especially domestic mutual funds, signals long-term confidence in the company’s business model and growth strategy. With consumption picking up and margins improving, fund managers appear to be positioning V-Mart as a retail sector outperformer for the coming fiscal year.

What Are Analysts Saying—Buy, Sell, or Hold?

Analyst sentiment toward V-Mart remains cautiously optimistic. Out of analysts covering the stock, seven have issued a strong buy rating, two have rated it a buy, two suggest holding, and one each has advised selling and strong sell. The split indicates that while the market appreciates the company’s growth trajectory, some concerns remain around execution risks, particularly in terms of new store ramp-ups and sustaining same store growth momentum. Investors with a long-term outlook may find value in accumulating the stock, especially post-bonus, where adjusted prices could offer more attractive entry points. Those with a short-term view may monitor upcoming quarters for earnings consistency and margin stability.

What’s the FY26 Outlook for V-Mart?

Looking forward to FY26, V-Mart is expected to focus on consolidating its omnichannel strategy, improving per-store profitability, and expanding in high-potential semi-urban markets. Analysts believe that the festive season in the second half of the fiscal year could boost revenues, especially if inflation remains stable and rural incomes continue to grow. The company is also expected to optimise its supply chain further, improve vendor relationships, and strengthen its own-label product lines. With its proven ability to navigate a tough macro environment and a clear roadmap for digital and offline integration, V-Mart is well placed to capitalise on India’s consumption recovery across non-metro regions.