Whalesbook
V-Mart Retail Achieves Profitability in Q3 FY26
V-Mart Retail announced a significant financial recovery in the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a net profit of ₹87.99 crore, a substantial improvement from the net loss of ₹8.87 crore recorded in the September 2025 quarter. This return to profitability was accompanied by a year-on-year increase in revenue from operations, which rose to ₹1,126.38 crore from ₹1,026.73 crore in the corresponding quarter of the previous year. Total income for the quarter stood at ₹1,130.34 crore.
Operational Performance and Strategic Expansion
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a considerable increase, reaching ₹209.50 crore in Q3 FY26. This represents a significant jump from ₹71.51 crore in the preceding quarter and ₹171.37 crore in the year-ago period. While total expenses sequentially increased to ₹1,015.32 crore from ₹823.91 crore in the September 2025 quarter, the improved revenue and EBITDA figures indicate enhanced operational efficiency.
V-Mart Retail continues its expansion strategy, adding 23 new stores during the quarter and bringing its total store count to 554 by the end of December 2025. This growth comes despite same-store sales growth (SSSG) remaining flat at 0% for the core V-Mart format, with the 'Unlimited' format reporting 2% SSSG. The company attributed this to shifts in the festive sales calendar, noting that combined Q2 and Q3 performance showed a 5% SSSG.
Exceptional Items and Regulatory Notice
The company recorded an exceptional charge of ₹2.11 crore related to incremental costs stemming from the notification of four new Labour Codes by the Government of India on November 21, 2025. This move aims to modernize India's labor framework and consolidate existing laws, though it may increase compliance costs and payroll obligations for businesses.
Separately, V-Mart Retail disclosed on January 20, 2026, that it received a statutory order from the Municipal Council of Banka, Bihar, imposing a one-time penalty of ₹10 lakh. The penalty is for the alleged unauthorized installation of promotional flex banners on electric poles. V-Mart has stated its intention to protest the order and file an appeal.
Market Valuation and Performance
As of January 22, 2026, V-Mart Retail's market capitalization stood at approximately ₹4,546 crore. The company's shares were trading around ₹591.30 on January 22, 2026, following a previous close of ₹601.25. The stock's trailing twelve months (TTM) Price-to-Earnings (P/E) ratio is around 39.6. Return on equity (ROE) was reported at 11.91%.
Peer Comparison
Compared to peers like Avenue Supermarts and Shoppers Stop, V-Mart Retail operates with a smaller market capitalization. Avenue Supermarts has a significantly larger market cap of over ₹240,000 crore and a higher P/E ratio of 84.02. Shoppers Stop, while closer in market cap, reported a net loss in its most recent reported quarter. V-Mart's current P/E ratio of 39.6 is lower than many of its direct retail peers, suggesting a potentially more attractive valuation relative to its earnings, especially in light of its return to profitability.