V-Mart shares fall -5.75% as Q1FY27 operating margin stands at 72.59%
Standalone net profit was Rs 47.21 cr, while management said its network had reached 591 stores across 335 cities.
Filed 24 Jul 2026, 13:20 IST · V-Mart Retail Ltd (VMART)
Key takeaways
- V-Mart’s standalone Q1FY27 net profit was Rs 47.21 cr on EPS of Rs 5.94, with other income of Rs 2.65 cr a small part of pre-tax profit.
- Operating margin was 72.59%, while interest of Rs 19.82 cr and depreciation of Rs 83.95 cr were the key charges below operating profit.
- The stock fell -5.75% on the results day as management reported a network of 591 stores across 335 cities.
Price around the results
Operating profit remained the main earnings source
V-Mart reported standalone net profit of Rs 47.21 cr from profit before tax of Rs 59.52 cr, with EPS at Rs 5.94. Other income of Rs 2.65 cr was a small contributor to pre-tax profit, so the quarter’s earnings were primarily operating-led. The Rs 12.31 cr tax charge reduced pre-tax profit to reported net profit.
Margin was high, but below-operating charges shaped profit conversion
The 72.59% operating margin left a wide gap between operating profit of Rs 790.33 cr and profit before tax of Rs 59.52 cr. Interest of Rs 19.82 cr and depreciation of Rs 83.95 cr were the main charges below operating profit in the reported standalone results. With no sequential or year-on-year driver data provided, the quarter does not establish the direction of margin movement.
V-Mart’s reported margin was far above the peer median
V-Mart’s 72.59% operating margin was 56.45 percentage points above the 16.14% median for 22 Consumer Discretionary peers that had reported the same quarter. This places the company well above the sector comparison, although the result should be read alongside the substantial interest and depreciation charges below operating profit.
Management highlighted a 591-store network
Management said the company’s network had reached 591 stores across 335 cities, covering 5.1 million sq. ft. The disclosure adds scale context to the quarter’s operating result, but the presentation does not provide a comparable prior-period network figure in the supplied commentary.
The market reaction was negative on results day
The stock fell -5.75% on July 24, while the opening gap was -0.22% and the move relative to the benchmark was -5.32%. Trading volume was 8.71 times the reference level, indicating unusually active trading around the result. There is no supplied post-results history against which to judge whether this move was typical for V-Mart.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,089 cr |
| Other income | ₹3 cr |
| Expenses | ₹298 cr |
| Operating profit | ₹790 cr |
| Operating margin (%) | 72.59% |
| Interest | ₹20 cr |
| Depreciation | ₹84 cr |
| Profit before tax | ₹60 cr |
| Tax | ₹12 cr |
| Net profit | ₹47 cr |
| EPS (₹) | ₹5.94 |
Operating margin of 72.59% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.75% | -5.32% |
Volume on the results session was 8.71× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company’s network reached 591 stores across 335 cities, spanning 5.1 million sq. ft.
What to watch
- Whether operating margin remains above 72.59%.
- Whether the store network moves beyond 591 stores across 335 cities.
- Whether other income remains a small contributor relative to Rs 59.52 cr of pre-tax profit.